Cash On Delivery
Cash On Delivery (COD) is a payment method where customers pay for goods or services in cash at the time of delivery, rather than upfront online. It is commonly used in e-commerce and logistics to facilitate transactions for customers who prefer or require cash payments, often in regions with low credit card penetration or high distrust of online payments. This approach shifts payment risk from the buyer to the seller or delivery service, as payment is collected upon physical receipt of items.
Developers should learn about COD when building e-commerce platforms, logistics software, or payment systems targeting markets where cash is prevalent, such as in parts of Asia, Africa, or emerging economies. It is used to increase sales conversion by accommodating customers without access to digital payment methods, and requires integration with delivery tracking, inventory management, and cash handling processes to ensure secure and efficient transactions.