By powering higher success rates, how Cashfree Payments has become a true partner in scale for Indian businesses

When a leading ecommerce platform partnered with Cashfree Payments to optimize its checkout experience, it unlocked faster payment processing, higher success rates, and a seamless experience that significantly improved conversion.

Founded in 2015 and backed by Y Combinator, Apis Partners, and the State Bank of India, Cashfree has grown into a major player in India’s digital payments sector. The company’s product suite includes payment collection tools, payout services, cross-border payment capabilities, and Secure ID, an AI-powered identity verification platform. Today, the fintech giant processes $80 billion in annual payments for over 800,000 businesses. As a merchant-focused company with innovations aimed at solving business pain points, Cashfree’s core philosophy revolves around simplifying payments and identity verification needs, thereby empowering merchants to focus on scaling their business operations.

In today’s era of internet-first businesses, success hinges not only on how well you attract customers but also on whether you can convert them at the final step: payments. Payment success rate is one of the most important metrics for businesses collecting online payments.

Why success rates matter more than ever

Studies reveal that failed payments cause 33% to 62% of customers to abandon the checkout, leading to a 30% reduction in potential revenue and an increase in customer acquisition costs.

Across India’s booming ecosystem of startups, D2C brands, ecommerce platforms, MSMEs, and large enterprises, payment failures are more than technical glitches; they are growth killers. The country’s D2C market is projected to hit $267.3 billion by 2030, according to a Mordor Intelligence report. But only the brands that optimize every conversion touchpoint will lead. While founders obsess over customer acquisition costs, retention, and user experience, payments are often the leak in the funnel they overlook.

The cost of failed payments and the Cashfree edge

Whether it’s a gateway timeout, a card declined due to network issues, or a delayed one-time password (OTP), the consequences are the same: friction, frustration, and fall-off. For high-growth digital businesses, even a 1% increase in failure rates can translate into significant revenue loss over time.

Cashfree Payments addresses these challenges head-on by offering solutions designed to maximize success rates and simplify compliance.

Frictionless repeat checkouts with smart token management

Traditional card security norms often hinder the checkout experience — saved cards still require CVV, expired cards lead to failed payments, and the overall friction causes drop-offs. Cashfree solves this with RBI-compliant card tokenisation that not only secures card data but also powers CVV-less checkouts for repeat customers, leading to higher success rates, faster checkouts, and fewer abandoned carts. Think of it as a digital valet service for your card — securely saved, automatically updated if reissued, and always ready for seamless payments.

Smart routing that dodges downtime

Payment failures often spike due to downtime, subpar bank performance, or network congestion on a specific payment gateway. Relying on a single PG can bottleneck success rates. Acting as an autopilot for payments, Cashfree’s advanced machine learning capabilities enable automatic routing of each transaction through the best-performing gateway in real time based on factors like bank success rate, payment method, and transaction value.

In-house card switch for faster approvals and full transaction transparency

Traditional card routing relies heavily on third-party infrastructure, which can be slow, opaque, and unreliable – leading to more declines, longer transaction times, and less control. Cashfree’s in-house card switch directly connects with card networks. This improves approval rates, speeds up processing, and gives merchants full visibility and control over the transaction journey and decline codes. Think of it like owning the express lane on a busy highway — fewer tolls, and faster travel.

Native OTP and Auto OTP read for quick and frictionless checkouts

Checkout flows often falter at the authentication stage, especially on mobile. Redirects to external pages or delays in manual OTP entry cause customers to drop off. Cashfree eliminates this with Native OTP flows that keep verification within the app or website and Auto OTP Read on mobile SDKs that instantly pulls OTPs from SMS (with user consent). This reduces friction and boosts conversion rates. It’s like having an assistant whisper the OTP into your checkout screen before you even reach for your keyboard.

Direct integrations for seamless and fail-proof transactions

Payment failures often occur due to indirect routing paths that add friction and increase the chance of declines. Cashfree Payments addresses this with direct issuer integrations, enabling tokenised transactions to be processed straight through the cardholder’s bank—be it HDFC, Axis, ICICI, or others. By connecting directly with the issuing bank’s systems, Cashfree ensures faster transaction processing, reduced failure points, and significantly higher success rates. It’s like placing a call directly to someone instead of going through a switchboard, less waiting, fewer errors, and a clearer connection.

Don’t leave revenue on the table

As India’s internet economy races toward a projected $1 trillion by 2030, every percent in payment success rate will become a competitive advantage. One failed payment can be the difference between a loyal customer and a lost opportunity. For D2C brands, SaaS startups, and scaling ecommerce businesses, payment success rates are no longer a backend metric – they define the customer experience.

Cashfree Payments gives founders control over this critical but often underestimated lever of growth: reliable, high-converting payments. From intelligent routing and CVV-less checkouts to real-time failure detection and smart payment nudges, every feature is engineered to help merchants win.

So if you’re building a business in India’s thriving digital economy, don’t settle for just another payment gateway. Choose a platform designed to fuel your next phase of growth, one where every successful transaction moves you closer to scale.