Razorpay, a prominent digital payments firm, is significantly expanding its presence in Southeast Asia, with a particular focus on Singapore. According to Shashank Kumar, co-founder and Managing Director, the company aims to process $5 billion in total payment volume (TPV) from both domestic and cross-border transactions within the region over the next two years. This ambitious target represents a substantial increase from its current TPV of approximately $1 billion in Southeast Asia.

Having already established a foothold in Malaysia, Razorpay's entry into Singapore is a strategic move aligned with its broader objective of achieving a global TPV of $400 billion by 2030. TPV, which represents the total value of transactions processed by a payment platform, is a key metric for assessing the scale and growth of payment companies.

In Singapore, Razorpay intends to offer businesses a comprehensive suite of services, including payment gateway solutions, cross-border transaction capabilities, and real-time financial analytics. The company plans to collaborate closely with banks, financial institutions, and regulatory bodies to ensure seamless integration and compliance with Singapore's robust financial ecosystem.

Shashank Kumar emphasized the expected growth in the region, stating, "In Southeast Asia, we are expecting that domestic and cross border payments combined, we should be doing close to $5 billion TPV in next two years which I think is a significant expansion from where we are at today. We are doing like $1 billion at this point in time." He also highlighted the importance of cross-border payments, anticipating significant volume between India and Southeast Asia, Singapore and Malaysia, and the rest of the world and Southeast Asia.

Razorpay's Singapore platform will facilitate multi-currency transactions and real-time payments through platforms like PayNow, enabling businesses to operate globally with reduced costs. The company is also innovating with AI-powered solutions, including Agentic-AI, a suite designed to allow AI agents to handle financial transactions, onboarding, and integration. Additionally, Razorpay is launching RAY, an AI-driven solution to automate payments, payouts, payroll, and vendor transactions, and Magic Checkout, a one-click checkout feature aimed at increasing conversion rates and reducing transaction drop-offs.

In July 2023, Razorpay launched its first international payment gateway, Curlec by Razorpay, following the acquisition of a majority stake in Malaysia-based Curlec in February 2022. This venture has seen a 30% month-on-month growth, and Razorpay intends to replicate this success across other Southeast Asian markets.

Currently, 40% of Southeast Asia’s online digital payments are processed through real-time payment systems in Singapore. However, businesses still encounter high transaction fees, ranging from 4-6% on cross-border payments, and fragmented payment systems that limit scalability. Razorpay aims to address these challenges by reducing cross-border fees by 30-40%, thereby making transactions more seamless and cost-effective.

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay is also in the process of reverse flipping its headquarters back to India. In the fiscal year ending March 2024, the company reported a total payments income of Rs 2,501 crore, a 9% increase from Rs 2,293 crore the previous year. Its net profit surged nearly fivefold to Rs 34 crore from Rs 7 crore, with an annualized TPV reaching $180 billion.