The landscape of digital payments is undergoing a rapid transformation, driven by two key trends: the growing demand for seamless omnichannel experiences and the explosive rise of quick commerce. The quick commerce market, for instance, is projected to soar from $5 billion in 2024 to a staggering $40 billion by 2030, reflecting a compound annual growth rate (CAGR) of 40%. This surge encapsulates the public’s escalating appetite for faster, more convenient shopping experiences, which is reshaping how consumers engage with retail and payments alike.
“This trajectory mirrors the broader expansion of e-commerce, which has grown from $3 billion in 2010 to $120 billion in 2024,” explains Rahul Kothari, Chief Operating Officer at Razorpay. “Looking ahead, e-commerce is expected to reach $325 billion by 2030, illustrating the accelerating pace at which digital commerce is evolving.”
Kothari observes that these shifts highlight a seismic change in consumer expectations — namely, a demand for speed, convenience, and seamless integration across various shopping platforms. This transformation places advanced payment technologies, from digital wallets to embedded finance solutions, at the heart of the evolution. For businesses, this means providing frictionless, secure, and versatile transaction systems to meet the rising demand for seamless omnichannel and quick commerce experiences.
In an exclusive interview with Storyboard18, Kothari reflects on Razorpay’s growth in 2024, the impact of AI on the fintech sector, and what the future holds for digital payments.
For Razorpay, 2024 was a year of pivotal milestones and strategic growth. Kothari highlights several key achievements like the launch of Razorpay Venture Investment Program, an initiative designed to empower the next wave of B2B innovators, generated more than 100 applications within just 24 hours.
The introduction of Curlec by Razorpay marked the company’s first foray into the Malaysian market. Curlec now serves over 5,000 businesses and anticipates an annual Gross Transaction Value (GTV) of RM10 billion by 2025.
Razorpay made substantial strides in offline payments, now contributing 15% of the company’s overall revenue. With a presence in over 15,000 pin codes across India, Razorpay continues to enhance in-store payment experiences, most notably with the launch of DigiPOS — a Point-of-Sale solution that boosted customer conversion rates by 17% at Apple Premium Resellers, Kothari says.
The company has introduced over 60 new products, focusing on AI-driven features that are aimed to improve security, efficiency, and the overall user experience. As a result, Kothari claims, Razorpay achieved a 24% increase in revenue, with an annualized Total Payment Volume (TPV) of $180 billion.
Defining Trends: UPI, Embedded Finance, and the Rise of AI
The fintech landscape saw transformative developments in 2024, with the Unified Payments Interface (UPI) emerging as a frontrunner in reshaping India’s payment ecosystem. Kothari highlights UPI’s unprecedented growth, processing 16.6 billion transactions in October 2024 alone, and its potential to become the country’s dominant payment method. Monthly Person-to-Merchant (P2M) transaction volumes surged from $21 billion in 2021 to $80 billion in 2024, reflecting a fourfold increase in just three years.
Beyond UPI, Kothari points to the increasing demand for seamless omnichannel payment solutions. The Indian Embedded Finance (EmFi) sector, growing at a rate of 30.4% annually, is expected to see revenues jump from $4.8 billion in 2022 to $21.1 billion by 2029. This trend reflects the broader move towards integrating digital and physical payment systems, creating unified, frictionless shopping experiences for today’s consumers.
AI’s Role in the Payments Revolution
The rise of AI and generative AI has also played a pivotal role in shaping the fintech sector. Kothari outlines several ways Razorpay has harnessed these technologies including Razorpay’s RAY. RAY, Kothari says, is India’s first AI assistant for payments, payroll, and payouts. It allows businesses to access real-time insights and improve operational efficiency.
He also says Generative AI is playing a critical role in fraud detection, customer experience enhancement, and process automation, reinforcing security and trust across platforms. AI-driven automation has enabled Razorpay to cut infrastructure costs by 30%, illustrating the significant efficiency gains that AI can deliver.
Looking Ahead to 2025: The Rise of Quick Commerce and Omnichannel Payment Solutions
Looking to 2025, Kothari predicts that the payment industry will continue to evolve in response to two key drivers: quick commerce and omnichannel payment experiences. As the quick commerce market grows at an impressive 40% CAGR, the demand for instant, on-demand shopping experiences is expected to reach new heights. This will further propel the need for payment technologies that enable seamless, secure, and rapid transactions.
“The future is clear,” says Kothari. “Consumers expect speed, convenience, and integration across shopping channels. To meet these demands, businesses must invest in flexible, advanced payment solutions—from digital wallets and contactless payments to embedded finance systems—that facilitate frictionless commerce.”