India-based Simpl has introduced an Artificial Intelligence-enabled Checkout Suite that may eliminate cash on delivery by 2028. As estimates suggest that the total Cash on Delivery (CoD) losses for businesses are approximately USD 6-7 billion annually, Simpl’s goal to eliminate it in ecommerce in the next five years may help in minimising financial losses and fast-tracking profitability.

The company aims to achieve this objective by associating with ecosystem partners, as well as by including solutions like Pay After Delivery and Return-to-Origin (RTO) intelligence. Simpl has developed Pay After Delivery to allow businesses to block the transaction’s amount from the customer’s account limit and finalise the payment process after the delivery has been completed. RTO intelligence allows merchants to determine whether to enable the CoD option or not, based on the customer’s behaviour at the time of checkout.

Both solutions may aid in decreasing the number of returns and frauds that impact businesses’ finances. Moreover, the suite offers Address Intelligence to help businesses recognise the address’ quality and identify potential risks associated with it. The Checkout Suite will be integrated within UPI Block and Debit, which blocks the funds via UPI when the order is placed and initiates a transaction after the delivery.

As per Simpl’s officials, 6 out of 10 customers opt for Cash on Delivery as a payment method when ordering a product. While the ecommerce industry has seen a rise, merchants are impacted by the high costs, RTO losses, and difficult working capital requirements. Simpl’s Checkout Suite uses data science models for their APIs and pay-after-delivery solutions, therefore helping businesses with their goals of obtaining profits and sustainability.

The company’s solutions may be more pursued, as merchants are digitalising their processes in order to meet the increasing requirements of consumers across the country. India’s e-retail market Bain & Company’s report on India’s e-retail market estimated the market size to increase to USD 150-170 billion on an annual growth of 25%-30% and doubling of market penetration to 9-10% by 2027. Also, India’s shopper base is the third largest globally, with approximately 180-190 million online shoppers in 2021.

The expansion of the e-retail market will be fuelled by fashion, general merchandise, and groceries, which will cumulatively account for two-thirds of the market by 2027. While in 2021, only 180-190 million customers shopped online, it is estimated that in the next four years, the number will increase to 400-450 million. India has seen exponential growth in the online infrastructure and ecommerce market, the COVID-19 pandemic also serving as a stimulus, increasing the adoption of online solutions by both customers and businesses.

Moreover, in 2021, the ecommerce sector has seen an expansion in funding, reaching USD 11 billion. Technological innovations are expanding the e-retail growth in India, as companies utilise technology to offer improved customer experiences to shoppers. Each solution serves distinct customer segments, therefore offering multiple grounds for businesses to expand their e-retail market.

Companies have introduced chatbots and an array of AI technologies, therefore increasing the user experience and access to accurate product information. .