Paying for large purchases in one go has always been a major concern for many customers when shopping online. The lack of visibility for credit and flexible payment options, such as EMIs and PayLater, may stop customers from completing their online purchase. Currently, 1 out of 4 online customers abandon their purchase right at the product page owing to the fact that they have to make the full payment in one go. To address this, Razorpay, recently launched the Affordability Widget, making high value orders more easy and affordable for customers. By increasing the discoverability of payment options and offers on the product page, businesses can reduce customer drop offs and increase conversions.
The Affordability Widget powered by Razorpay’s Affordability Suite, makes it easy for businesses to showcase affordable payment options and offers on the product page. This has helped businesses boost revenue by 40%, increase the average transaction value by 45% and see a 38% rise in customer retention. Brands such as Chumbak, Livpure, Duroflex, Zebrs, etc. have been using Razorpay’s Affordability Widget and have been able to take advantage of over 40 banks to leverage new age payment options like BNPL, cardless EMIs, etc.
Having access to credit makes high value purchases a lot easier and convenient for most customers and helps businesses sell more. Industry data highlights how 70% of the shoppers between 25-44 years prefer Buy Now Pay Later (BNPL) payment options when shopping online.
Highlighting the problems the Affordability Widget aims to solve, Khilan Haria, SVP and Head of Payments Product, Razorpay said, “Given that only 5% of individuals have access to credit cards in India, there is a very substantial need to empower customers with more flexible and affordable payment options so they can buy what they need when they want. While affordable payment options already exist, cart abandonment problem still persists causing businesses to lose over 30% in sales revenue annually. With the Affordability Widget, we want to solve that and help end-consumers discover payment options early on in their shopping journey and help aid in decision-making.”
How does the Affordability Widget help businesses?
- Boost revenue with higher customer conversion by showcasing relevant EMIs, Pay Later and Offers on product page itself
- Boost average transaction value by showcasing EMI plans, No-cost EMI offers
- Increase repeat purchases by helping businesses highlight the best offers, discounts, and cashback on the product page
- Easy integration on websites and e-commerce platforms like Woocommerce and Shopify
Elaborating on the impact Razorpay’s Affordability Widget has had, Balaji Huskur, Head of e-Commerce, Duroflex highlighted, “To us, the Affordability Widget is genuinely helpful in driving revenue and the benefits have far exceeded our expectations. We have seen a phenomenal increase in revenue via Affordable payment options by 170% which has also resulted in an overall increase of 7% in Average Selling Price. What we really like about Razorpay Affordability Widget is that it aggregates all EMI, Pay Later providers, and even highlights No-cost EMIs without any manual intervention. Customers can explore all BNPL options in a single view and this makes decision-making and the purchase experience seamless.”
“Razorpay Affordability Widget has helped us increase revenue with Affordable payment options by 30% within weeks of integration. It’s an innovative product that solves customer drop-offs from product pages.” says Anup Abraham, Tech Lead, Chumbak
The Affordability Widget aims to empower eCommerce businesses with higher conversion and increasing the number of repeat shoppers. With the e-commerce space expected to grow twice its size in the coming few years there is a lot of potential for businesses to grow while continuing to be customer-centric and offer the most suited payment options for their customers. As India gears up for a plethora of sales and festivals in 2023, the Affordability Widget will be a substantial benefit for both businesses and customers alike.
Moneycontrol journalists were not involved in the creation of the article.
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