Razorpay Magic Checkout reduces RTO by 30%, plans to add 5x retailers in the next year

BL Bengaluru Bureau Updated - July 26, 2023 at 11:33 AM.

The payment gateway promises convenience for users and lower return orders to origin (RTOs) for businesses

File picture of Khilan Haria, head of product, payments, Razorpay | Photo Credit: Nishant Ratnakar

Payment gateway Razorpay’s Magic Checkout says it helps shoppers to check out faster than before thus helping retailers achieve a 20 per cent rise in revenue and also increase conversions.

The company observed that nearly 70 per cent of online shoppers drop off due to form fills and account creation, 30 per cent return orders to origin (RTOs), while new shoppers have 20 per cent lower conversions than repeat shoppers.

Razorpay’s Magic Checkout has addressed these issues by saving shoppers’ addresses and card details during their first purchase and pre-filling those when they transact with the same business or any other that also uses Razorpay to process its payments.

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“When we place orders through prepaid, typically RTO, which is returned to order is 5 to 10%, because a customer would have high intent. But when we do that through COD, that number jumps all the way to 30-40% which takes all the effort and the energy to ship, comes back to businesses,” said Khilan Haria, SVP, Head of Payments, Product, Razorpay.

Razorpay Magic Checkout helps convert a user into a potential buyer with seamless checkout service as conversion goes by 30-50 per cent. The suite is built to maximise the revenue of businesses as when a buyer comes and logs in through the Razorpay mechanism, details show up and it is optimised for mobile and other devices.

“On an average, typically businesses see 30-50% of the uplifting conversion through Magic Checkout and on an average 30-35% RTO reduction due to Magic Checkout,” aded Haria.

Magic Checkout helps reduce RTOs and shipping costs with RTO protection, which significantly boosts margins, while also enabling zero cost for COD RTOs.

More than 1,000 businesses actively use Magic Checkout services and the company plans to scale it 5 times in the next 12 months.

Published on July 26, 2023 05:55

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