Razorpay, an online payments platform, launched eCOD, to help eCommerce companies accept payments at the time of delivery using payment methods other than cash. The product is aimed to replace Cash on Delivery and provide relief to online merchants impacted by the phasing out of Rs 500 and Rs 1000 currency notes.
Government of India’s demonetization efforts to curb the flow of black money and corruption in India has led to a temporary loss in sales for several eCommerce companies. With eCOD, Razorpay offers 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 provider for local businesses and various online merchants like Licious and GoZefo to launch eCOD feature.
“In India, Cash-on-Delivery accounts for around 70 percent 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 utilise 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. A great secondary benefit of the demonetization effort gives an opportunity for companies like us to build greater trust in online payments among consumers,” said Harshil Mathur, CEO and co-founder of Razorpay.
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.
“We see the current situation as a fabulous opportunity to improve the much-needed customer experience by taking transactions online. Innovation to make online payments seamless will help our merchants retain customers. Razorpay’s eCOD stands out as the best mechanism to replace cash-on-delivery and achieve our business objectives,” Vaibhav Khandelwal, co-founder and CTO of Shadowfax, said.