Why COD still matters
In the Philippines, cash is still king.?
This is supported by the fact that according to popular food delivery platform foodpanda, while online payments accounted for 49%, cash payments still accounted for the remaining 51% of orders.?
The preference for cash payments extends even to online shopping. According to a study by market research firm Agile Data Solutions and reported by ABS-CBN News, 71% of shoppers still preferred cash-on-delivery (COD) as their primary payment method. Cash reigned supreme as shoppers looked to protect themselves from paying for unfulfilled orders and/or faulty products. Only 14% of respondents said they preferred paying via payment centers or e-wallets.
Why Do Filipinos Still Prefer COD?
1. Protection Against Fraud and Poor Service
COD ensures that payment is made only when the product is in the customer’s hands. This gives buyers the chance to inspect the item before handing over their money. In a market where trust in online transactions is still developing, this level of security is crucial.
2. Low Credit Card Penetration
Unlike in more developed markets where credit cards are the default for online shopping, the Philippines has a low credit card penetration rate of just 15%, according to TransUnion. Without widespread access to credit, many Filipinos rely on COD as their primary means of participating in e-commerce.
3. Reliability Amid Digital Payment Issues
While digital payments are growing, system outages, processing delays, and accessibility issues persist. COD provides a fail-safe payment option, ensuring transactions are completed without disruptions.
The Business Reality: COD is Here to Stay
Despite challenges such as higher cancellation rates and cash-handling risks, businesses must offer COD to remain competitive. Ignoring this consumer preference means alienating a significant portion of the market.
Bridging the Gap with eTap
For businesses and logistics providers, managing COD payments efficiently is critical. Riders handling cash need a seamless way to remit collections at the end of the day. The ideal remittance method must be:
With over 4,000 eTap kiosks in groceries, pharmacies, and convenience stores across the Philippines, riders can easily deposit collected COD payments without handling large sums of cash or waiting in long lines. eTap provides a frictionless way for businesses, riders, and consumers to ensure that payments are safely and efficiently transferred—keeping commerce moving in an increasingly digital world.
Article by Pancho Dizon
Graphic by Justin Khyle Calleja
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