said considering the changing landscape, the role of fraud has been significantly underrated in economic analysis. Estimates suggest that by FY’22, the Indian e-commerce industry is expected to reach $150 billion. With around 4-5 per cent transactions being fraudulent, Indian e-commerce players will lose over $5 billion to fraudulent transactions by 2020.
Razorpay and Thirdwatch envision a future where AI will help e-commerce firms not just combat fraud but maintain a competitive advantage and significantly improve merchant profitability. “Together, I believe we can help reduce frauds by 30-40 per cent by next year,” said Mathur.
Shashank Agarwal, founder of Thirdwatch said fraud has been one of the largest and longest concerns for e-commerce companies.
He said most of their systems frequently fail while identifying fraudulent patterns and therefore not capable of differentiating between genuine customers and fraudsters. “There is a dire need for a data-driven solution to help identify these patterns and reduce losses of any kind, to help the marketplace function at an optimal level,” said Agarwal. “We hope to make AI accessible and helpful to every business, amplifying human gumption with intelligent technology.”
Considering the pace at which digital adoption in the country is increasing, with digital transactions growing 50 per cent year-on-year, the problem is becoming even bigger.
Razorpay, which in June this year raised funding of $75 million from investors including Sequoia and Tiger Global, currently powers digital payments for 3,50,000 businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy and Yatra. It plans to increase this to 450,000 by 2020. The company expects a 5x growth in its revenue by the end of the next fiscal year.