Razorpay Singapore has launched a new checkout feature designed to help merchants address two persistent challenges in e-commerce: high transaction fees and rising cart abandonment. The feature, called Razorpay Offers, gives businesses a way to present instant, payment-method-specific discounts at the point of purchase. The aim is to steer customers towards more cost-efficient payment options while keeping the checkout experience smooth and familiar.
A tool designed to tackle high abandonment rates
Razorpay Offers integrates directly with existing Razorpay checkout flows and payment links, so merchants do not need extra engineering resources to deploy it. Once enabled, the system can display targeted Smart Offers that appear only when customers select eligible payment methods. For example, a shopper choosing PayNow or a particular card can immediately see a discount that is then applied automatically to the final payable amount.
The company notes that cart abandonment remains a major challenge worldwide, averaging about 70 percent, with mobile abandonment even higher. Research shows that unexpected charges at checkout, such as shipping fees or taxes, play a significant role in customers abandoning their purchase. In Singapore, abandonment rates in some categories, including fashion and accessories, exceeded 85 percent in 2024. Razorpay Offers places discounts at the moment of decision, which the company believes can help counter the effect of added charges and give customers the final push to complete their transactions.
Angad Dhindsa, Head of Southeast Asia at Razorpay, said, “Merchants today are looking for practical levers that improve the customer journey without any additional complexity. This feature is designed to fit directly into existing workflows and support merchants, navigating both conversion challenges and reducing cost of accepting payments.”
Steering customers towards lower-cost payment methods
The feature is also intended to help manage rising payment acceptance costs. Credit cards remain the dominant online payment method in Singapore but are among the most expensive for merchants, with fees reaching up to 3.4 percent plus S$0.40 per transaction. PayNow, by contrast, is a significantly lower-cost alternative.
Razorpay Offers gives merchants a way to guide customers towards these lower-fee options without introducing friction into the checkout flow. High-visibility banners and instant discounts highlight the value of selecting a more affordable method, offering both a customer incentive and a cost benefit for the merchant.
Responding to changing market conditions
The launch comes at a time when businesses are reassessing margins amid shifts in consumer behaviour and increasing competition across the e-commerce landscape. With customer expectations for speed, transparency and convenience continuing to rise, reducing friction at checkout has become a priority for many online businesses.
Razorpay says the introduction of Razorpay Offers aligns with a broader industry shift towards tools that improve payment clarity, speed and adaptability. The company believes such features can support businesses aiming for more predictable and sustainable growth, particularly in markets where margins are tightening and payment costs are becoming a larger part of operating expenses.
