India-based checkout network Simpl has launched the Simpl Pay After Delivery (SPAD) offering to improve the convenience of Indian customers. The system allows users to select a new payment option at checkout, which allows them to pay for their goods only after the successful delivery of a shipment.

The offering aims to provide some peace of mind for customers who are worried about blocked money due to unsuccessful deliveries. The system is also intended to foster trust between customers and merchants and provide an improved user experience. SPAD leverages the capabilities of Simpl’s 1-tap pay system, which offers near-zero transaction failures and helps reduce returns and Cash-on-Delivery (CoD) orders for merchants.

Even though the system emulates a Cash-on-Delivery system, it doesn’t actually require any input from the user at the time of delivery. According to financialit.net, CoD accounts for nearly 60% of all online transactions in India mainly due to a lack of trust in merchants. Simpl specialises in helping merchants connect effectively with consumers.

The company’s PAD system aims to solve a major pain point in the industry, and it has already been adopted by entities operating in industries such as fashion, electronics, and pharmaceuticals. Simpl representatives cited by financialit.net offered some more insight about this product launch and emphasised the company’s commitment to helping both users and merchants alike. They also revealed the main goals of the PAD system, which is to build trust and reduce Cash-on-Delivery for merchants, thereby improving business efficiencies.

Cash-on-delivery in India According to clickpost.ai, Cash on Delivery is a payment method that gives users the freedom to pay for their orders after delivery, which makes it a popular choice for India’s broad base of non-tech-savvy customers. COD is a service that enables companies to provide services even to the unbanked. While the system has certain benefits for buyers, especially those who do not live in urban areas, COD can be detrimental to sellers, as they are required to ship products without having the security of knowing whether the buyer will accept the order or not.

COD continues to be one of the most preferred modes of payment in Southeast Asia. In 2020, when the COVID-19 pandemic was at its peak, nearly two-thirds of all online purchases were paid for in cash according to a study by CMS Infosystems. One of the most important advantages of COD is the sense of security it offers customers.

That’s because buyers are not required to provide any credit card data or pay for the items before delivery, assuring them that they would not fall victim to a scam. The implementation of Simpl’s Pay After Delivery system aims to provide some peace of mind for merchants by assuring them that they will get paid once the product delivery has been successfully completed. At the same time, buyers benefit from most of the advantages of Cash on Delivery, as money will be withdrawn from their accounts only once they have received their order.

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