India : E-retailers modify COD mode; encourage digital payment

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E-retailers modify COD mode; encourage digital payment

10
Nov '16

Courtesy: Flipkart

Major e-commerce players in India have announced temporary modifications to the Cash-on-Delivery (COD) payment mode after Prime Minister Narendra Modi's announcement to demonetise currency notes in the denominations of Rs 500 and Rs 1,000. E-retailers have stopped accepting the banned notes and are urging their customers to opt for alternative methods.

Considering that ATMs remain close for another day and withdrawals from banks are capped at Rs 2,000, it will be inconvenient for users to pay for their COD orders. E-retailers are suggesting users to pay using their debit or credit cards or use notes of valid denominations.

“We understand that there will be a temporary impact on customers' payment transactions. Currently, we have temporarily stopped cash as a payment option for new orders. Customers that had already placed COD orders before midnight 8/11 can pay for their orders using debit or credit cards or currency of valid denominations. For future orders, we are working on alternatives to make doorstep payments easier for customers by introducing a variety of electronic payment options. We will shortly reintroduce cash payment on delivery and also provide an improved selection of payment methods,” an Amazon India spokesperson told Fibre2Fashion.

Snapdeal is giving users the option to postpone their deliveries by a few days and has restricted new COD orders to Rs 2,000 for the time being.

A Snapdeal spokesperson said, “All Snapdeal users who have already placed COD orders can pay for their deliveries using any currency notes except Rs 500 and Rs 1,000 notes discontinued by RBI. Users also have the option to defer the delivery by a few days till new currency notes become easily available. As an interim measure, we have restricted new COD orders to Rs 2,000 to make it convenient for the buyers and the delivery personnel. The COD limits will increase gradually over the next few days.”

Flipkart is urging its customers to pay using the card on delivery mode or opt for wallet payment solutions. It will start accepting new notes as soon as they are made available in the country.

“With immediate effect, we shall no longer accept COD payments in old Rs 500 and Rs 1,000 currency notes, which have been declared as invalid by the RBI. New Rs 500 notes issued by the RBI after November 10 will be accepted after they become available,” says Flipkart's website.

Inconvenience to e-retailers and customers notwithstanding, these companies have welcomed the decision as it can help the Indian economy by encouraging digital payment modes.

“We welcome the government's bold and courageous move to weed out black money, which will have significant long term benefits for the economy. With this, the quantum of India's economy moving through the digital pipes will witness massive growth. Snapdeal is committed to supporting all such initiatives,” Kunal Bahl, co-founder and CEO of Snapdeal, told Fibre2Fashion. (KD)

Fibre2Fashion News Desk – India

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