Fintech major Razorpay on Tuesday launched its own Unified Payments Interface (UPI) infrastructure with 'UPI Switch' -- a next-generation cloud-based innovation, in partnership with Airtel Payments Bank.
Boosting success rates by 4 to 5 per cent, the company said that it is designed to handle up to 10,000 transactions per second (TPS) at any given time.
UPI Switch will also enable 5 times faster access to UPI innovations for businesses, the company mentioned.
"Razorpay’s UPI Switch is designed with a similar vision to provide scalability and the best performance to businesses. This venture into UPI Infrastructure marks a strategic move to manage the end-to-end merchant experience and provide the industry's leading stack," Khilan Haria, Head of Payments Product at Razorpay, said in a statement.
Explaining how UPI Switch works, the company said that the success of UPI transactions has a strong dependency on the UPI infrastructure deployed at the banks.
Banks connect with the existing UPI infrastructure to enable seamless communication between core banking systems and UPI technology while processing a UPI transaction. This infrastructure is called a UPI switch and is powered by Technology Service Providers (TSPs) for banks.
"Our integration with Razorpay's UPI Switch, a cloud-based infrastructure for the most advanced UPI Stack, ensures 99.99 per cent uptime and enables up to 10,000+ transactions per second," said Ganesh Ananthanarayanan, Chief Operating Officer of Airtel Payments Bank.
In January, UPI transactions reached a record Rs 18.41 trillion, showcasing its rapid adoption. With the addition of new payment methods like credit cards, wallets, and credit lines, UPI is expected to reach 2 billion transactions per day by 2030, the company mentioned.
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