COD (Cash & Card On Delivery) vs. PlatiOnline – Which is a Better Option?

Cash-On-Delivery – COD

Not so long ago, Cash-On-Delivery (COD) was the only payment method for the customers of eCommerce businesses in Romania. However, over the past few years, we’re seeing a steady shift in favor of online payments. Although the customers trust the COD method more, it is far from ideal for online businesses and it poses a number of problems that hinder their profitability and growth. PlatiOnline services are reliable and convenient for not only online businesses, but also for customers, allowing them to order products online and have them delivered to smart-lockers or to their doorstep. PlatiOnline payment services reduce transaction times and overhead for businesses and online customers.

Romanians prefer the PlatiOnline payment methods when it comes to travelling, utilities payments, ticket booking for events, and other similar services!

According to the Romania Country Commercial Guide, the eCommerce market was worth 1.8 billion euros in 2016, showing a staggering 30 percent, when compared to 2015.

Not only that, the market penetration rate of smartphones also increased within the same period, from 50 percent to 70 percent, indicating growth in online shopping trends through handheld devices. However, the lion’s share of online consumers in Romania still belongs to COD when it comes to shopping for products. But, Romanians prefer PlatiOnline payment methods when it comes to travelling, utilities payments, ticket booking for events, and other similar services.


Cash/Card on Delivery (COD) PlatiOnline – Online Payments
In the simplest terms, Cash/Card on Delivery refers to paying for goods or services after they have been delivered to customers. This payment method is generally associated with products, where the buyer first places the order, confirms its delivery, and upon receiving it, pays the amount through cash or bank card.

Let’s have a look at potential problems a business faces when using COD as a intermediate method for receiving payments:

  • It’s Expensive: Courier fees cut into a business’s profits,when the couriers are hired for delivering products and collecting the amount through cash on delivery.
    Since customers haven’t paid for the product yet, they may refuse to collect it on delivery, if they change their mind during that time;
  • It’s Risky: Driving around with products or cash is risky. The possibility of theft or accidents can lead to monetary losses for the business;
  • It’s Slow: It’s a lengthy process, which takes days to get money the your bank account. Add delays, like customer not having enough cash     or unavailable at the time of delivery, and the timeframe could increase to more than a week.
PlatiOnline can truly make life easy for both customers and online businesses. There are a number of ways for making online payments, such as online payment systems, trough installments and credit cards, digital wallets, and others, allowing customers to order and pay with just a few clicks while having peace of mind that their money has been securely transferred.
For businesses, PlatiOnline methods can be extremely beneficial for several reasons, such as:

  • Reduced Fees: No special fees for courier services is required when a customer has already paid for goods. The only thing a business has to pay for is     delivery. Moreover, since a customer has already paid for it, they are careful about its delivery, and hence reduces the chances of return;
  • Secure Payments: When using the services of a PCI DSS Level 1 certified online payment platform, like PlatiOnline, businesses and customers can rest     assured that the transaction is being done in a highly-secured manner. Such services use fraud detection and risk management technologies that keeps the money safe and makes customers more confident when purchasing from such a platform.
  • Streamlined Payment Process: Since the payment is processed in real-time, the entire process is quick and easy. Customers have the option to use debit cards and     credit cards installments to pay for products.
PlatiOnline system have been gaining ground in Romania at an unprecedented rate. If you are looking for a reliable online payment management system, you can put your trust in our PlatiOnline system. We offer fast and secured payment processing solutions that makes the checkout process simple and easy for customers. Contact PlatiOnline today, to discuss your needs.