How Razorpay Offers Helps Singapore Merchants Slash Payment Costs and Boost Sales

Why Many Singaporean Merchants are Struggling In Today’s E-Commerce Landscape

Singapore’s e-commerce merchants operate in one of the most competitive and digitally mature markets in Southeast Asia. Whether running a high-volume Shopify store or a growing enterprise, these businesses are constantly balancing two opposing goals: driving sales growth and managing rising operational costs. As the market has matured, the focus has shifted from “growth at all costs” to sustainable unit economics, making it essential for merchants to find every possible way to optimize their profit margins.

Key Takeaways

Slash Payment Costs by 2%: Instantly improve margins by steering customers from high-cost credit cards (2.9% fee) to low-cost PayNow rails (0.9%) using targeted incentives.
Reduce Cart Abandonment: Combat Singapore’s 70% drop-off rate by displaying upfront, auto-applied discounts that eliminate sticker shock at checkout.
No-Code Campaign Management: Launch sophisticated, payment-specific promotions in minutes directly from your dashboard. Zero engineering required.
Strategic Profitability: Transform payments from a cost center into a growth engine by balancing customer demand for deals with sustainable unit economics.

The Challenge

Despite strong demand, Singaporean merchants face a “profitability squeeze” driven by a fragmented payment landscape and high consumer expectations:

High Payment Processing Costs: Credit cards remain the dominant payment method, accounting for over 40% of online transactions. However, they come with high merchant fees (MDR) averaging 2.9%. In contrast, local rails like PayNow cost just 0.9%, but merchants have historically lacked the tools to incentivize customers to switch.
High Cart Abandonment: The industry average for cart abandonment sits at 70%, often triggered by unexpected costs like shipping or taxes at checkout.
Manual Campaign Management: To run promotions, merchants often rely on clunky, manual coupon codes or rigid systems that don’t offer granular control, leading to wasted budget and operational headaches.

The Solution

Razorpay has launched Razorpay Offers in Singapore to solve this exact problem. It is a specialized “Payment Method Steering” engine that brings reliability, automation, and strategic control to the checkout process.

Smart Payment Steering: Merchants can now create targeted offers that apply only when a customer selects a specific payment method. For example, offering “S$5 off” exclusively for PayNow transactions effectively steers customers away from high-cost cards.
Instant Visibility: Discounts are instantly displayed and applied within the checkout flow, giving customers the immediate gratification they need to complete the purchase.
No-Code Execution: The feature integrates seamlessly with standard Razorpay checkouts and Payment Links, requiring zero engineering effort to launch complex campaigns.
Unified Dashboard: All campaigns are managed from a single dashboard, simplifying reconciliation and performance tracking.

Key Results

Implementing Razorpay Offers allows merchants to transform their payment strategy from a cost center into a competitive advantage:

2% Cost Saving per Transaction: By successfully steering a customer from a Credit Card (2.9%) to PayNow (0.9%), merchants instantly unlock a 200 basis point (2%) saving on that transaction’s margin.
Reduced Cart Abandonment: Upfront, visible discounts directly address price hesitation, helping recover a significant portion of the 70% of shoppers who typically drop off.
Competitive Parity: With 62% of Singaporean shoppers prioritizing discounts, having a seamless offers tool is now a necessity to compete with major regional players.
Festive Readiness: Merchants can instantly deploy campaigns for high-volume periods (like the Diwali or Year-End festive seasons) to capture maximum revenue without eroding profitability.

Why We Launched Offers

“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.”

Angad Dhindsa, Head of Southeast Asia, Razorpay

Ready to Turn Payments into a Profit Engine?

Razorpay Offers empowers Singaporean businesses to stop absorbing high fees and start actively managing their bottom line. Focus on your growth and customer experience, while we ensure your payments are optimized for profitability.

Ready to start using Offers?

Book an appointment now.

Razorpay Singapore Editorial Team

The Razorpay Singapore Editorial Team is a group of seasoned fintech professionals, payment experts, and content strategists with extensive experience in digital payments, e-commerce, and financial technology. With a proven track record of delivering authoritative and insightful content, the team combines deep industry knowledge with data-driven research to empower businesses in Singapore’s dynamic digital economy.

Committed to excellence, the team ensures every article reflects Razorpay’s expertise in secure payment solutions, regulatory compliance, and innovative technologies. By simplifying complex financial concepts, they help businesses make informed decisions. With contributions from thought leaders and certified professionals, the Razorpay Singapore Editorial Team is your trusted source for navigating the evolving fintech landscape.

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