Understanding the preference for Cash on Delivery in Philippine logistics

The rise of E-commerce platforms and the ongoing pandemic have contributed to the growth of digital payments locally. However, they only accounted for around 20 percent of the local transactions in 2020. Majority of consumers still prefer cash-based purchases, especially with Cash on Delivery in the Philippines as one of the most preferred payment options.

Even up to this day, the Philippines remains a cash-based economy. Thus, Cash on Delivery is important for both Philippine logistics companies and merchants alike. If that’s not enough reason for you to consider CoD, here are a few things you should know about Filipino consumers.

Living paycheck to paycheck

Many Filipinos still live in a paycheck-to-paycheck lifestyle. This means, the money they make is only enough for them to spend on their needs and essentials. Merchants who offer Cash on Delivery grant them the time they need to save up for their purchases. This is highly important for them, especially if it’s something they really want but currently don’t have enough resources for.

In-person-like shopping experience

When looking for a logistics partner, go for those with a Cash on Delivery option because it enables an in-person-like shopping experience to a certain degree. In physical or offline stores, shoppers have the chance to examine a product before deciding to buy it. Similarly, CoD allows online shoppers to check the products that arrive before paying for it to make sure that it isn’t damaged and is what they ordered.

Added layer of protection from scams

Because of the growth of E-commerce, digital scams have also become more rampant. Rather than keying in their card details, Filipino shoppers prefer cash payments because it’s more transparent and secure for them. Cash on Delivery is essential for Philippine logistics because it offers another kind of protection. It gives consumers assurance that they are not being scammed or tricked.

CoD is simple and easy

Essentially, many Filipino shoppers prefer CoD because it’s easier to manage. Working with logistics partners with Cash on Delivery capabilities opens your shop to a whole demographic – those who are not tech-savvy when it comes to digital/online payments and those who do not have credit/debit cards. Offering CoD is a definite plus for you for inclusivity!

Leaning towards flexible arrangements

Lastly, merchants must remember that Filipino consumers have varying payment preferences. Offering Cash on Delivery equally benefits merchants because it shows your flexibility in catering to different types of consumers. Filipinos tend to favor shops that have flexible payment options primarily because it suits their needs, lifestyle, or their current situation.

If you want to make CoD part of your online business, Payo offers seamless CoD integration into your current E-commerce platform. Not only that, Payo can also help you better manage your operations through services like Live Customer Support, Warehousing, and Advanced Remittance.

Interested in exploring Cash on Delivery in the Philippines? Sign up with Payo today or send us a message at [email protected]. We’ll be in touch soon!