Razorpay Singapore launches feature to cut costs

The feature integrates into existing checkout flows and is aimed at helping businesses manage high payment acceptance costs and reduce cart abandonment

Razorpay Singapore has launched a checkout feature that applies instant, payment specific discounts to help merchants cut costs and improve conversions.

Razorpay Offers lets merchants present discounts when customers select certain payment methods such as PayNow or credit cards.

The feature integrates into existing checkout flows without additional engineering work and is aimed at helping businesses manage high payment acceptance costs and reduce cart abandonment.

The tool supports high visibility prompts that highlight eligible discounts and guide customers toward preferred payment methods at the moment they decide how to pay.

This is intended to counter common drop off points, particularly unexpected charges such as shipping fees and taxes, which continue to be the largest driver of abandonment.

Angad Dhindsa, Head of Southeast Asia, 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, Dhindsa added.

The launch comes as abandonment rates remain high. Global levels average about 70%, and categories such as fashion and accessories in Singapore have exceeded 85% this year.

Razorpay says presenting discounts at the final decision point can encourage shoppers to complete their purchases.

Payment costs also remain a concern. Credit cards are still one of the most expensive online payment methods in Singapore, with fees that can reach up to 3.4% plus S$0.40 (US$0.31) per transaction.

PayNow offers a lower cost alternative, and the company says the feature can help shift usage toward more cost efficient methods without adding friction.