Razorpay Launches Industry-First Push Provisioning For Cards: Set to Drive 40% Increase in Activation Spends

*This is in partnership with NDTV Profit BrandStudio

Credit card adoption in India has seen a remarkable surge, with the number of cards issued by banks rising sharply to 10.38 crore as of June 2024. According to RBI data, this is up from 8.87 crore in June 2023, 7.87 crore in June 2022, and 6.28 crore in June 2021.

Despite this significant growth, delivering an optimal card payment experience for new customers has remained a challenge for businesses. For instance, when making card payments to a brand for the first time, customers are required to enter the 16-digit card number, CVV, expiry date, and the cardholder's name. This is a cumbersome, error-prone process, making the first-time purchase experience frustrating. Additionally, this repetitive input process is required for each new brand, increasing the inconvenience for customers.

This is not good news for businesses, which spend huge sums on customer acquisition but are not always guaranteed conversions. While tokenisation—which was introduced by the RBI in September 2021—has led to a 5% jump in success rates for saved cards, less than 30% of all cards are actually tokenised!

This could be due to many reasons, including the effort involved in manually saving card details with every business.

It is in response to all these challenges that Razorpay has introduced Push Provisioning, becoming the first payment aggregator in the industry to offer such a solution.

The RBI recently expanded tokenisation guidelines to include card-issuing banks, allowing them to manage token storage. With its recently launched Push Provisioning solution, Razorpay has now enabled cardholders to save their card details with multiple businesses in a single step immediately following card activation on their bank’s mobile app. Razorpay Push Provisioning is already live with top banks across India, enhancing security and convenience for customers and businesses alike.

For customers, there is now an exceptional—and rewarding—card payment experience as they save their card details through their bank’s portal, eliminating the need to enter card information on every merchant’s website.

For banks, Push Provisioning is an opportunity to improve card activation spends by incentivising cardholders to save their cards. Razorpay expects that conversion rates will improve by at least 5%, and card activation spends by as much as 40%!

For businesses, this is not just about boosting revenue by improving conversion rates, but a chance to tap into new customer segments and offer tailored incentives to drive loyalty. An easy and quick setup with Razorpay’s Push Provisioning allows businesses to go live swiftly and deliver value to their end customers promptly.

Additionally, Razorpay’s tokens also support future innovations, such as biometric authentication, keeping businesses and customers at the forefront of payments technology.

With a continued focus on payments innovation, Razorpay has brought businesses, banks, and customers together, ushering in a new era in customer experience, loyalty, and security.

And that’s not all. Razorpay is showcasing even more innovations at the fifth edition of the Global Fintech Fest (GFF) 2024, which takes place from August 28 to 30. Be sure to explore these solutions at Razorpay’s booth W1. Leading brands like MakeMyTrip, BluSmart, PVR Inox, Urban Ladder, Akasa Air, Tata StarQuik, Park+, Treebo, Ferns N Petals, and more have partnered with Razorpay to bring Push Provisioning to life.