How to migrate people from cash on delivery to other forms of payment

Abstract

This project studies the payment behavior of customers on e-commerce websites and the underlying reasons and apprehensions for the same. It also tries to understand how the customers can be migrated from prevalent cash on delivery (COD) method to other forms of payment like card, net banking, or e-Wallet. From our secondary and primary research, we have found out that COD is still the single most preferred mode (48%) of payment among the consumers in India. Other modes of payment including card, net banking, and e-Wallet are cumulatively 52% which is higher than the COD. These modes of payment where the customer has to pay first and receive goods/services later are gaining acceptance owing to better infrastructure like penetration of smartphones, consistent higher Internet speed, earlier refund of products & money to bank accounts and increasing trust among customers. This number is further expected to rise as the Internet literacy is increasing and Internet infrastructure would become more robust in India. Also, Word of mouth advocacy and advertisement is the prevalent reason for customers to try any new website and also in developing trust, this is followed by company’s brand.