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MOD or Mobile on Delivery System

Cash on Delivery or COD was introduced by Flipkart in 2010 and it contributed to 30% of their top-line. Initially it was offered for free but now the cost is borne by the customers. Card on Delivery comprised of only 1% of the orders. Card on Delivery could not be that popular because of setup requirements whose cost shifted to the eCommerce companies, high transaction fee. Post demonetization, card on delivery, mobile wallet payments picked up. NPCI is coming up with UPI, Adhaar Pay and Bharat QR. E commerce companies are expected to use UPI on Delivery as it will reduce their cost of carrying card machines. UPI payment is a great idea after demonetization as the number of smart phone users are expected to grow from 300 million to 467 million by 2021. Since mobile wallets were launched less than 5 years back, we stand at over 200 million mobile wallet users with 300 million smart phone users in India.  Hence, we can say mobile wallets will stay and COD system will soon transform into MOD system. Read more at:  https://www.entrepreneur.com/article/294888

 

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