For some time, cash-on-delivery reigned as the default method of payment when customers ordered items via telephone, from an ecommerce store, or from mobile apps. But cash-on-delivery, or COD, is not the only payment method that customers now use when purchasing goods or services. For reasons related to safety, convenience, and added perks like acquiring rewards points, many buyers are now often motivated to go cashless instead.
The current payment ecosystem that customers now enjoy includes methods facilitated by credit cards, debit cards, e-wallets, and QR codes. It’s also just as easy for merchants to add cashless payments options into their existing point-of-sale systems. Some examples include adding an e-wallet option for web checkout and accommodating cashless on delivery payments on a portable device like the PayMaya One Lite. This all-in-one payment gateway supports QR code payments, as well as dips (EMV) and taps (NFC) for debit, credit, and prepaid cards. It also supports a variety of payment networks, including Visa, MasterCard, JCB, WeChat, GrabPay, and Bancnet, as well as PayMaya itself.
If you own a business and sell goods and services either online or from a physical store, consider upgrading your current tech stack for payments. Give your customers a wider variety of payment options beyond COD, because they may be looking for cashless options themselves. It’s no longer enough to rely solely on COD for payments when customers may want to complete cashless payments before or upon receiving their items. This may also be a fruitful move for you, as it could strengthen your business’s current financial management practices and make you more ready for the future.
Here are five reasons to go beyond COD as a payment method and to enable a wider variety of cashless payments for your business.
The first reason to expand payment options beyond COD is that it reduces the business’s risk of losing money. Organizations and business owners who rely solely on COD will find that it can actually be quite easy to lose or to miscount cash. Sadly, they may not find out until after the transaction has been completed. A robust cashless payment ecosystem guarantees a higher rate of accurate, real time customer payments that make it through intact. So if you want to reduce the risk of losing money, strengthen your payment system and open up cashless payment options from cards or e-wallets.
Cashless payment, whether done in advance or during the delivery of goods itself, can also save both customers and logistics staff a lot of time. For one, it cuts the hassle of either party needing to count cash or of the rider needing to head back to the delivery location because the payment made wasn’t correct the first time. If customers have the option of settling their payments without cash beforehand, they can just receive their item immediately, and that ends the transaction. If cashless on-delivery is chosen as the payment option, the transaction is still likely to be completed faster compared to when the customer still has to fish for cash in their wallet. And the less time spent correctly settling payment for an individual delivery, the faster all the consequent transactions for the day will be completed.
Cash on delivery was the default payment method of choice for many people for so long because it was the easiest arrangement for merchants to implement. But given the affordable and easy-to-use technologies that are available today, difficulty adopting cashless options is no longer an excuse. Expanding your current payment ecosystem could be as simple as purchasing a portable point-of sale device or adding a checkout plugin to your website. Find the non-COD solutions that work best for you, and make them available to your customers as soon as possible.
Another thing for you to consider is that many within your target market might already prefer payment options beyond cash on delivery. In light of the COVID-19 pandemic, your customers may be looking for cashless options to minimize risky hand-to-surface contact, and therefore, exposure to pathogens, like the one that causes COVID-19. There’s also a chance that they’ve already become used to the convenience and speed of cashless payment, whether via card, e-wallet, or QR code scanning. Lastly, cashless payments may also give them more opportunities to use cashbacks or rewards points for their purchases. If you take all these into consideration—and provide options beyond cash on delivery - your customers will likely transact with you more often and increase your overall sales.
Relying on a cashless payment ecosystem could also improve your company’s financial management, for deliveries and otherwise. Most cashless payment systems also come with built-in accounting and data analytics features. These can help you tally your sales across all modes of transaction much more quickly and accurately than manually counting bills and coins ever will. It will take you less time to get the full picture behind your sales performance. And that, in turn, will help you identify points of improvement for each of your customers’ experiences.
Though this article has argued the merits of exploring cashless payment systems, it would be unwise to eliminate cash on delivery altogether. It really depends on what method your customer would prefer, as a fair number of them may still choose cash payments. In the end, it is variety that matters customers will want a diverse payment system and the ability to choose according to their preference. A business that can help customers settle their transactions in the way they find safest, most stress-free, or most rewarding will likely earn their loyalty.
Whether customers want to settle via cash, card, or e-wallet payment, that’s for them to decide and for you to accommodate. Do both your staff and your customers the biggest favor by opening up payment options for your customers beyond cashless on delivery!