Razorpay, a full-stack payments and banking platform for businesses has launched the new Affordability Widget. It is reported that one out of four customers shopping online drops off before the checkout page because of high upfront costs and lack of discoverability of affordable payment and credit options and offers. To address this issue faced by millions of businesses, the Affordability Widget aims to solve high customer drop-offs by showing affordable payment options on the product page itself, thereby making high-value orders a lot more affordable for customers and thereby helping increase revenue for businesses. 

Customers are increasingly preferring to pay through equated monthly installments (EMIs), cardless EMIs and PayLater options while buying high-value consumer items, as affordability has become a key factor in the post-pandemic scenario, said Razorpay.

As per industry reports, 70 per cent of shoppers between 25-44 years prefer to buy now pay later (BNPL) payment options when shopping online. 

The Affordability Widget is compatible with all e-commerce websites and platforms such as Shopify and Woocommerce and involves no manual intervention.

It makes access to credit easy by aggregating relevant payment options like EMI, pay later and offers and helps consumers shop and pay later even without access to a credit card. With the new widget, businesses reportedly stand to gain over a 45 per cent increase in average transaction value as it encourages more purchases with higher spending power.

“Given that only 5 per cent 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, the cart abandonment problem still persists causing businesses to lose over 30 per cent in sales revenue annually, we want to solve that and help end-consumers discover payment options early on in their shopping journey and help aid in decision-making, said Khilan Haria, senior vice president (SVP) and head of payments product, Razorpay.

“We have seen a phenomenal increase in revenue via affordable payment options by 170 per cent which has also resulted in an overall increase of 7 per cent in average selling price," said Balaji Huskur, head of e-commerce at Duroflex.

Razorpay’s Affordability Widget is the recent addition to Razorpay’s Affordability Suite, launched in 2020, a platform that aims to boost revenue growth for businesses through its industry-leading coverage with over 40 banks and partnerships with fintech firms. 

The Affordability Suite currently contributes to over 30 per cent of the gross merchandise value (GMV) for the e-commerce giants. With over 11,000 merchants on the Affordability Suite for brands like Cleartrip, Policy Bazaar, Cultfit, Byjus, Decathlon, Titan, Razorpay claims that businesses can achieve up to 40 per cent increase in revenue as a result of early discoverability of affordable payment options.