Razorpay launches Vulcan, India's first AI-powered payments foundation model

Key facts

• Razorpay launched Vulcan, described as India's first transformer-based AI foundation model built specifically for payments.
• Vulcan was developed using technology from NVIDIA and Amazon Web Services (AWS) and is built on Amazon SageMaker.
• The model is designed to address payment failures, fraud, transaction routing and checkout-related friction across India's digital payments ecosystem.
• An internal study involving 1.5 million shoppers and more than 51,000 businesses found that payment-related friction affected consumers across metropolitan and smaller markets.
• Early components of the model were deployed across around 3 trillion data points on Razorpay's payments network to test routing, fraud and risk decisions on live transactions.
• The technology improved payment success rates by up to 10 per cent and detected and prevented eight times more international card fraud.
• The model identified five times more fraudulent or disputed transactions without increasing the number of alerts.
• On Razorpay's Magic Checkout platform, 40 per cent more shoppers saw their preferred UPI application, facilitating an additional 1-2 lakh purchases every month.
• The model is designed to assess payment routes in real time and select the most suitable route before a transaction is attempted.
• Razorpay plans to expand Vulcan to power payment decisions across authentication, routing, fraud detection and lending.