Many of us still remember the early days of internet commerce, where putting personal details into the worldwide web made you nervous?

Even though there has been a significant rise in online payments over the last few years since Cash on Delivery (COD) continues to remain the most preferred mode of payment for consumers in many parts of Asia.

Most Philippine households or 86 percent don’t have bank accounts due to various reasons as per survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

When that sizeable part of the population wants to pay online they have few other choices that COD.

There’s no point in contradicting the fact that cash is an immense part of the commerce economy which has given an edge to those who offered the service.

Companies like Flipkart in India or Fullphillipines in the Philippines have services aimed at COD payments for online commerce.

Some of the issues which used to be prevalent with this system have been addressed recently with technological solutions.

Information Blind Spot – The package no longer disappears when moving between merchant and client. With the right mix of technology and communication, it can be tracked consistently.

No credit history – past lack of experience with customers can be mitigated by being part of larger commerce communities who have a broader memory and have already built a history with the client, thus reducing cancellations through a mutually beneficial relationship with loyal end clients.

High Cancellation Rate – as COD gives the consumer greater power. The ability to consistently communicate between involved parties is critical and can greatly mitigate costs due to cancellation rates (that can go as high as 30%).

Cash Flow Management Challenges – keeping various cash deals in line can create great confusion and tracking issues for merchants. Orderly IT systems that specialize in managing shipping companies and cash flow tracking are part of some supplier’s offerings.

Delivery Challenges – Sometimes merchant and delivery company’s interests do not align. A fragmented market with geographical challenges can easily overwhelm a merchant trying to ensure client satisfaction while having to keep his various logistics solutions operating smoothly. A good control software can go a long way towards saving money, resources and improving client satisfaction.


With the right payment support for Cash on delivery every person, from a young college student who didn’t even have a bank account, to a person from a small town who didn’t possess a debit card, are now able to buy their hearts desire using e-commerce.