Home-grown e-commerce marketplace Flipkart has launched a contactless, QR-code-based payment facility for all its pay-on-delivery shipments in order to transition users from cash on delivery (COD) transactions to digital payments.

The payment method not only ensures greater safety for consumers at a time when they are looking to minimise personal contact but also addresses the trust deficit that many consumers might face. Consumers who earlier opted for cash on delivery can now use this facility, scan the QR code attached to their purchase and make a digital payment for their order through any UPI app at the time of delivery.

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Boost to consumer trust

The number of UPI-based payments has witnessed a steady rise over the years, with offline person-to-merchant transactions accounting for 42.5 per cent of all UPI transactions in December 2020. The pandemic has also accelerated the adoption of UPI payments, with 2.64 billion transactions recorded in April 2021 — a 100 per cent increase over the previous year, according to data by NPCI.

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The new QR-based payment facility by Flipkart is expected to further reinforce consumer trust in digital transactions, enhance consumer safety and contribute to an overall increase in the adoption of digital commerce.

Ranjith Boyanapalli, Head – Fintech and Payments Group at Flipkart, said, “As the lines between e-commerce marketplace and fintech continue to converge, it becomes imperative to cater to customers’ evolving needs and attitudes. While the pandemic has urged several consumers to make a shift to online shopping, some trust deficit during checkout remains in pockets. With ‘pay-on-delivery’ technology, we want to ensure that customers have peace of mind with their payments and at the same time can shop within the safety of their homes.”

Published on June 8, 2021