PhonePe And Flipkart Usher In Cashless COD
You order a product online and decide to pay for it using Cash on Delivery (COD). Then begins the wait for your delivery. You also need to have cash ready and be physically present to pay and receive your order.
We just made things simple! You can now go cashless on your Flipkart COD orders with PhonePe.
Convenience On Delivery
Flipkart is the originator of COD payments in India, and was the first to offer customers the choice to pay by cash or card on delivery. As Rahul Chari, co-founder PhonePe and ex-Technology and Product head of Ekart explains, “COD has been a game changer in terms of building customer trust and giving them a payment option that mirrors how they pay for goods at a neighbourhood store. However COD orders come with a unique set of challenges. COD is not easy to manage at scale for logistics companies like Ekart, given the collection, deposit, safety and reconciliation challenges. Also often the customer may find it inconvenient to be available to take the delivery or may not have the exact cash handy. In such cases, the delivery is attempted on another day forcing the customer to further wait for the product.”
Pay As You Like
To make payments cashless and easy, PhonePe and Ekart decided to run a pilot to simplify payment for COD orders on Flipkart. Once a product is out for delivery, customers get a payment request. All they need to do is install the PhonePe App and prepay their order using debit or credit card, UPI or Wallet . This makes it convenient and their physical presence is no longer required during payment. Customers making their first transaction on PhonePe also get Rs.150 as cashback.
The Impact
Faster payments, more payment options and happier customers are just some outcomes of this pilot. The numbers back that up too! Ekart is sending more than fifty thousand shipments a day across 10 cities, with PhonePe as a payment option for COD orders. Over 2.9 crore worth of transactions have been done using PhonePe with a repeat rate of 3.6%. Not only that, customer satisfaction scores have gone up to an impressive 97% from 82%.
Talking about the amazing benefits of digital payment options at a customer’s doorstep, Nitin Seth, Chief Operating Officer at Flipkart says, “The internet savvy, Indian consumers want access to quick, convenient, and doorstep services. Ekart is working towards creating a unique customer value proposition leveraging its incredible reach and customer focused services and benefits of Fintech.”
