Factors affecting COD

Different factors affecting COD are as follows:

1. Convenience: Trading with cash has always been straightforward and easy. Cash payment involves simple transactions.

2. Lack of Secure Payment Gateways: The absence of secure payment gateways puts users at financial risk from online dangers like hacking. Sometimes, it results in the loss of consumer money.

3. Familiarity with Cash Payment: Cash has been the primary mode of payment for a long time and it’s understandable that people are hesitant to switch to newer forms of payment. Even with the introduction of digital payment methods, cash payments are still widely accepted and remain the most convenient option for many people.

4. Less use of Credit/Debit Cards: Credit and debit cards are still not widely used by people in general. Banks impose fees on credit and debit cards, which discourages the use of these payment methods.

Cash on Delivery v/s Online Payment

Cash on delivery is a simple, convenient, and user-friendly payment method that does not require any technical knowledge. With this method, payment is made only after the goods are delivered, making it more reliable and satisfying. Moreover, cash on delivery does not require any financial infrastructure, which makes it accessible to everyone.

On the other hand, making payments online can be quicker, but it requires some level of technical knowledge. However, there is a risk of transaction interruption if the payment gateway stalls or stops functioning. Online payments are more cost-effective for both sellers and buyers as they eliminate the need for a collection agent. Buyers who use online payments can avail of discounts and other incentives. Additionally, given the temporal value of money, today’s money is always worth more than money obtained later.