Razorpay Expands to Singapore, Aims for $5 Billion in Southeast Asia Payments Within Two Years

Digital payments firm Razorpay has officially expanded into Singapore, marking a strategic move to strengthen its presence in Southeast Asia. The company aims to process a total payment volume (TPV) of $5 billion from domestic and cross-border transactions in the region over the next two years. This expansion follows Razorpay’s entry into Malaysia and aligns with its broader goal of reaching $400 billion in global TPV by 2030.

Current Market Position and Growth Goals

At present, Razorpay processes approximately $1 billion in TPV across Southeast Asia. Co-founder and Managing Director Shashank Kumar stated that this expansion would significantly boost the company’s transaction volume.

A substantial portion of this growth is expected to come from cross-border payments, particularly between India and Southeast Asia, Singapore and Malaysia, and other international markets connected to the region.

Key Offerings for Businesses in Singapore

Razorpay’s entry into Singapore brings a host of financial solutions for businesses. The platform provides advanced payment gateway solutions, cross-border transaction services, and real-time financial analytics.

Additionally, the company is collaborating with banks, financial institutions, and regulatory bodies to ensure seamless integration into Singapore’s financial ecosystem. This partnership-driven approach will help businesses adapt to the digital economy with ease.

Multi-Currency Transactions and Real-Time Payments

One of the major features of Razorpay’s Singapore platform is its ability to support multi-currency transactions and real-time payments through PayNow. This integration allows businesses to operate on a global scale at reduced costs. By leveraging PayNow and other real-time payment systems, Razorpay aims to streamline financial transactions and enhance the efficiency of cross-border payments.

AI-Powered Innovations in Payments

To revolutionize the digital payments landscape, Razorpay is introducing AI-driven innovations such as Agentic-AI and RAY. Agentic-AI is an AI-powered payments suite that automates financial transactions, onboarding, and system integration. Meanwhile, RAY is designed to handle payments, payouts, payroll, and vendor transactions seamlessly. Additionally, Razorpay is launching Magic Checkout, a one-click checkout feature aimed at increasing conversion rates and reducing transaction drop-offs.

Expansion and Previous International Ventures

Razorpay's expansion strategy in Southeast Asia follows the successful launch of its first international payment gateway, Curlec by Razorpay, in Malaysia. After acquiring a majority stake in Malaysia-based Curlec in 2022, the company has experienced a 30% month-on-month growth. Encouraged by this success, Razorpay is looking to replicate its growth trajectory in other Southeast Asian markets.

Addressing Cross-Border Payment Challenges

Currently, 40% of Southeast Asia’s online digital payments are processed through Singapore’s real-time payment systems. However, businesses often face transaction fees of 4-6% on cross-border payments, which creates barriers to scalability. Razorpay plans to lower these fees by 30-40%, making cross-border transactions more cost-effective and seamless.

Financial Performance and Future Outlook

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay is in the process of reverse flipping its headquarters back to India. The company reported total payments income of Rs 2,501 crore for the fiscal year ending March 2024, reflecting a 9% increase from the previous year. Additionally, its net profit surged nearly fivefold to Rs 34 crore from Rs 7 crore. Razorpay's annualized TPV reached $180 billion, demonstrating strong growth potential in both domestic and international markets.

Conclusion

Razorpay’s expansion into Singapore is a strategic move aimed at capturing a larger share of the Southeast Asian payments market. With its innovative AI-powered solutions, cross-border transaction capabilities, and commitment to reducing payment fees, the company is poised to become a key player in the region’s digital payments ecosystem. As Razorpay continues to scale, its goal of processing $5 billion in TPV in Southeast Asia over the next two years is within reach.