The way we pay is evolving rapidly, yet a significant portion of consumers still face challenges in completing online transactions. Whether due to a lack of direct access to digital payment methods, reliance on cash, or financial dependency on family members, these barriers contribute to high cart abandonment rates and limit the reach of digital commerce.
To bridge this gap, Razorpay introduces Pay on Behalf, a feature that allows buyers to assign the final payment step to a trusted payer. This innovation redefines accessibility, minimizes reliance on Cash on Delivery (COD), and empowers millions of users to transact digitally with ease.
Why Pay on Behalf Matters
1. Empowering Users Without Direct Access to Digital Payments
A report highlights that while internet access is expanding in Tier 3 cities, 94% of non-users cite barriers like limited digital payment knowledge, mistrust, and transaction complexity. This forces many to rely on family members, with 74% of consumers delegating payments instead of completing them independently.
By enabling users to securely delegate payments, Razorpay ensures that even those who lack direct access to digital payment instruments can participate in the digital economy, further advancing the vision of a fully digital India.
2. Reducing Cart Abandonment
One of the biggest challenges e-commerce merchants face is high cart abandonment rates, often due to a lack of immediate payment options. Research shows that around 70% of shopping carts are abandoned due to various checkout friction points.
With Pay on Behalf, buyers can send a Razorpay payment link to their preferred payer, ensuring that transactions are completed in real-time. This not only removes payment-related barriers but also significantly reduces abandoned carts.
3. A Smarter Alternative to COD (Cash on Delivery)
For many shoppers, COD is the only available payment option due to a lack of digital payment access. However, COD comes with multiple risks for businesses:
❌ Higher RTO (Return to Origin) costs
❌ Increased risk of fraudulent refusals
❌ Delayed cash flow and operational inefficiencies
With Pay on Behalf, Razorpay offers a secure and seamless alternative, allowing users to delegate payments to someone who can complete the transaction digitally. This shift:
✔️ Increases prepaid orders
✔️ Lowers risk
✔️ Improves cash flow
How Pay on Behalf Works
1️⃣ Buyer adds products to the cart and proceeds to checkout.
2️⃣ At the payment step, they generate a payment link via Razorpay.
3️⃣ The payer (trusted contact) receives the Razorpay payment link and completes the transaction using their preferred payment method.
4️⃣ The order is placed instantly. There is no need for COD, and abandoned carts are minimized.
How Razorpay Is Leading the Way
Pay on Behalf represents a transformative step in making digital transactions accessible to everyone. By addressing common payment barriers and reducing dependence on COD, Razorpay is enabling businesses to improve their conversion rates while fostering financial inclusion on a large scale.
Pay on Behalf by Razorpay—coming soon. Interested? Fill out this quick form to stay updated!
