Interview Questions › Metrics

Measure the success of Razorpay Magic Checkout

Razorpay Magic Checkout pre-fills addresses and payment methods for shoppers across many D2C websites. How would you measure success, for merchants and for Razorpay?

Context

Merchants pay a fee per transaction. Shoppers save time because their details carry across stores.

Clarifying questions to ask first

• What do merchants care about most?
• Do we have a way to measure lift per merchant?

How to approach it

1. Two customers: merchants and shoppers
2. Merchant value: conversion and RTO (return to origin) reduction
3. Razorpay value: adoption, payment volume
4. Guardrails: fraud, data trust

Framework: Goal of the product -> Users and value exchange -> North Star -> Supporting metrics by funnel stage -> Guardrails and counter-metrics -> Decision or target

Sample answer

• Checkout conversion lift vs merchant baseline
• Cash-on-delivery RTO rate
• Merchants still live after 90 days

1. Median merchant sees +18% checkout conversion
2. RTO falls 25% due to address validation
3. 12% of merchants switch off within 90 days, mostly over fees

North Star: payment volume processed through Magic Checkout at merchants live for 90+ days, because it captures merchant value and Razorpay revenue. Supporting: conversion lift and RTO reduction per merchant. Guardrails: fraud rate and shopper data complaints.

What interviewers look for

• Checkout conversion lift
• RTO rate
• Merchant retention