E-commerce giant Amazon India has re-introduced its cash on delivery (CoD) option from Friday which it had temporarily suspended earlier in the week following the government’s decision to demonetise R500 and R1,000 notes.
“Our delivery agents have been trained to help customers who opt for card payments, and accept genuine currency including the newly introduced R500 and R2,000 notes,” the company said in a statement.
E-commerce players like Amazon and Flipkart had temporarily suspended the CoD option as the new currencies were not available. Top e-commerce firms close 60% of their orders through the CoD route.
Ever since the government decided to do away with the old currencies there has been a spurt in the electronic transactions. “In the last two days, electronic payments at doorstep have gone up by a factor of 10X. This clearly indicates that customers are able to adapt to electronic payment methods when cash is constrained,” Amazon said.
The company said it will continue to focus on incentivising and helping people shift to making electronic payments. “We will continue to improve serving our customers on electronic payment methods both at the time of order and at the doorstep,” it said.
The spike in cashless transactions has also witnessed by other category players such as cab aggregators and digital wallets. Cab aggregator Ola said it has seen a growth of over 15 times on Ola Money recharge, its digital payment option. “In many smaller towns and cities across the country, which have predominantly been high on cash usage, there has been as much as 30 times growth,” it said.
However, Amit Jain, CEO Uber India, while welcoming the government’s move said, “Considering the unique infrastructure challenges India faces, the government and central bank should consider a waiver on two factor authentication (2FA) requirements for low value transactions. This would make it easier for customers to pay for goods and services online, allowing e-commerce players to further boost their contribution to economic growth and build the foundation for India to become a cashless economy.”