Posted: June 2022
With all the monthly sales from the top ecommerce stores, as well as the constant urge to order food online, there’s an unexplored aspect that probably needs more addressing, especially now that delivery apps are booming.
If cash-on-delivery (COD) and online payments are both standard options, why aren’t more businesses offering a method that combines both? Why is digital COD, or paying via cards or QR codes upon delivery, not a thing?
Let’s explore the reasons why it should be.
The difference from online payments
First, let’s discuss how it separates itself from online payments. Many customers, specifically the older demographic, are wary of that process. You can say it’s miniscule, but it’s understandable.
Entering your card details and submitting your money online is anxiety-inducing. It entails a long list of “What ifs?”
Customers get none of that in digital COD because as soon the card is dipped, tapped, swiped, or scanned it’s done (same thing with QR codes). No waiting and wondering if they got it right, and whatnot, so in turn, they get more comfortable, and if they do, they’ll tend do it more often. That means more profit for you.
Customers are either reluctant to use cash or short in cash
Cash isn’t going away, but with the rise of cashless payments, it has gone into a weird place among most consumers, if not all.
Consumers still want to keep cash as much as they can because it’s still the norm and they may encounter stores/businesses that don’t take digital payments, which then leads them to use it as few times as possible, thus lessening their delivery orders. Others, meanwhile, tend to forget how little cash they have because they constantly pay digitally, which then causes delays and hassles for everyone involved.
With digital COD, either won’t be hassled because any issue they may have will be dodged. They are either able to keep their cash or unrequired to come up with a certain amount.
Cashless is the ‘in’ thing
It’s simple. Cashless is the ‘in’ thing in payments right now - it’s easier, faster, and simpler. As such, consumers want to use it as often as they are allowed to, so it’s good if you can offer such a process. Doing so can elevate your brand and business because whoever your target market is, all they want is for their purchasing process to be quick and smooth.
A way to make it that is to offer them plenty of options, including this ‘in’ method. They want it to be over and collect their items. They don’t want to reach into their wallets and drawers to scoop up paper money and coins.
Many terminals are now ready for outside use
This list isn’t ranked, but this may rank #1 if it was.
Modern terminals are like smartphones now. It works cordless, which means it fits on delivery services, not just in-store transactions. In fact, you can also find ones that can process methods beyond the traditional non-credit or debit options, like loyalty cards and e-wallets.
So, terminals aren’t just mobile, it’s also flexible in payment acceptance, so it makes you wonder why digital COD is very limited.
Thinking cards, QR codes, or both?
Either way, you can lean to a payment provider – just look for the most flexible ones. Our OnePOS solution is a prime example. It provides a terminal that can accept card and QR code payments, which can be used in and out of the store.
Digital COD really is an interesting path. Let’s see if businesses get caught up to it soon.
As VeritasPay continues to provide high-quality payment solutions and promote cashless transactions, the company is also dedicated in bringing in fresh and informative content. We’ll be continuing to share new articles about our products, services, and varying subjects within the industry as we move forward.
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