Razorpay Singapore has introduced a new checkout feature that applies instant, payment-method-specific discounts at the point of purchase in a bid to influence how online shoppers in the country pay for their orders.
The tool, called Razorpay Offers, runs directly inside the company's existing checkout flows and payment links. It allows merchants to steer customers towards particular payment options through high-visibility offer prompts and targeted discounts.
The company positions the feature as a response to two persistent pressures in Singapore's eCommerce market. Merchants face rising costs of accepting digital payments. They also contend with elevated cart abandonment rates, especially on mobile devices.
Checkout steering
Razorpay Offers lets merchants configure "Smart Offers" that appear only when a shopper selects eligible payment methods. These can include options such as PayNow and credit cards. The feature shows banners and prompts within the checkout page, and then applies the relevant discount to the final transaction amount once the customer confirms payment.
Razorpay said the feature does not require any additional engineering work from merchants that already use its checkout or payment link products. The tools sit on top of existing workflows and integrate into current payment journeys.
Angad Dhindsa, Head of Southeast Asia at Razorpay, said merchants are increasingly focused on checkout changes that do not involve complex projects or major replatforming.
"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," said Dhindsa.
Razorpay is pitching the feature as a way for merchants to shape payment choices in real time. The company said that by adjusting discounts on specific payment methods, merchants can alter both the likelihood of purchase completion and the cost of each transaction.
Cost pressures
Payment acceptance costs have become a growing concern in Singapore's digital commerce segment. Credit cards remain the dominant online payment method in the market. They also sit at the higher end of the cost spectrum, with fees that can reach up to 3.4% plus S$0.40 per transaction.
By contrast, PayNow has emerged as a lower-cost option for merchants. It routes funds via bank-based transfers rather than card networks. This cost difference has created an incentive for merchants to nudge customers toward methods that incur lower fees.
Razorpay said its new feature gives merchants a way to "gently guide" shoppers from higher-fee payment instruments toward more budget-friendly alternatives. The company argues that visibility at checkout and immediate monetary incentives are more likely to shift behaviour than passive messaging elsewhere in the customer journey.
The tool applies the discount automatically once the customer selects a qualifying payment method and completes the purchase. Razorpay said this reduces the need for manual coupon codes or multi-step redemption processes.
Abandonment challenge
The launch comes as global cart abandonment rates remain high at around 70%. Industry data shows that abandonment on mobile devices tends to be even higher than on desktop environments.
Surveys of online shoppers have consistently identified friction at checkout as a leading cause of drop-offs. This includes unexpected additional costs such as shipping fees, service charges, and taxes that appear late in the process. These factors can trigger last-minute hesitation and cancellations.
In Singapore, abandonment levels in some categories have surpassed global averages. Sectors such as fashion and accessories have reported abandonment rates above 85% in 2024. These figures have pushed merchants to focus on checkout flow changes that might keep customers engaged for longer and convert more baskets into completed orders.
Razorpay said checkout discounts that appear at the final decision point may reduce the psychological impact of late-stage fees. The company said the timing of the discount aims to offset the effect of additional charges and provide an extra incentive for shoppers who are close to abandoning their cart.
Competitive landscape
Intense competition in eCommerce has led merchants in Southeast Asia and globally to invest in tools that address both cost and conversion metrics. Businesses are increasingly looking at payment orchestration, alternative payment methods and checkout optimisation in detail.
Razorpay noted that merchants are seeking more predictable and sustainable growth patterns. This includes a sharper focus on gross margins, marketing efficiency and payment-related overheads. Checkout-level interventions now form part of that strategy, as incremental improvements in completion rates can have a direct impact on revenue.
The company said Razorpay Offers reflects a broader industry trend towards checkout experiences that are clearer and faster from the customer's perspective, and more adaptable from the merchant's side. Dhindsa said the company expects demand for these kinds of tools to increase as more Singapore businesses reassess their digital payment mix and refine how they present payment choices to customers at the online point of sale.