Razorpay launches eCOD to replace cash-on-delivery

By : |November 16, 2016 0

Online payments platform, Razorpay has launched eCOD, to help e-commerce companies accept payments at the time of delivery using payment methods other than cash post the demonetization of high currency notes.

As many online marketplaces are witnessing the loss of sales due to the cash crunch, with eCOD, Razorpay is offering its merchants the option of collecting payments from their customers, at the time of delivery, via non-cash payment modes like UPI or digital wallets like OlaMoney, Mobikwik, PayUmoney, and Freecharge.

Delivery person can also generate an instant payment link at the time of delivery that enables the customer to pay via credit/debit card or Netbanking.

Razorpay has already partnered with Shadowfax, one of the largest logistics providers for local businesses and various online merchants like Licious and GoZefo to launch eCOD feature.

“In India, Cash-on-Delivery accounts for around 70% of all online transactions. In the present situation, we understand the problems online businesses are facing. Cash is difficult to come by and customers want to utilize their limited cash judiciously. In addition, not all online buyers in India are willing to pay first and receive the product. With eCOD, we have attempted to retain the essence of payment on delivery while giving consumers an array of payment modes to pay instead of cash,” said Harshil Mathur, CEO & Co-founder of Razorpay.

“A great secondary benefit of the demonetization effort by the Prime Minister Narendra Modi gives an opportunity for companies like us to build a greater trust in online payments among consumers,” he added.

Upon choosing eCOD as a payment option while shopping online, customers will be able to pay at the time of delivery either by UPI, digital wallets or by requesting a payment link. The payment mechanism will generate a PIN number without internet connectivity or wallet login, that the customer receives at the time of delivery, making the process as simple as paying cash.

Many other companies have also resorted to different means to sort out the demonetization effect. Snapdeal has launched a similar feature, called Wallet on delivery which allows users to pay via wallet for all the CoD orders. Paytm has also introduced ‘Nearby’ feature on its platform which enables Paytm customers to get information about their nearest Paytm merchant.

Also, read CashNoCash.com to help you locate nearest working ATMs

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