Razorpay has launched Vulcan, a transformer-based AI foundation model developed specifically for the payments ecosystem, as the company looks to strengthen transaction intelligence across its network.
Unlike general-purpose AI models, Vulcan is designed to understand payment behaviour across merchants, payment instruments, issuing banks and payment gateways. The model can analyse transaction-level signals to identify patterns and improve decisions related to payment success, fraud and risk.
Vulcan has been trained on nearly 4 billion payments and 3 trillion data points, analysing around 3,000 signals for each transaction. Razorpay developed the model using technology and infrastructure from NVIDIA and AWS, with Amazon SageMaker supporting its training and deployment.
Early components of the model have already been tested on live transactions, with Blinkit, Bachatt and redBus using some of its capabilities. According to Razorpay, the initial deployments delivered an 8–10 per cent improvement in payment success rates.
The company also reported that Vulcan detected eight times more international card fraud and identified five times more fraudulent or disputed transactions without increasing the volume of alerts.
On Razorpay’s Magic Checkout platform, the technology enabled 40 per cent more shoppers to view their preferred UPI app, contributing to an additional 1–2 lakh purchases each month, according to the company.
Vulcan can process multiple transaction signals to determine the payment route most likely to succeed, identify suspicious activity, assess risks related to cash-on-delivery orders and recommend suitable payment options.
Harshil Mathur, CEO and Co-founder, Razorpay, said Vulcan is built to continuously improve as it processes more payment data. He added that the technology is not an LLM like ChatGPT, but a specialised foundation model designed to understand patterns in the movement of money across the company’s payments network.
Razorpay plans to expand Vulcan’s use across areas including authentication, payment routing, fraud detection and lending as India’s digital payments ecosystem continues to grow.
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