Wallet on Delivery – OnDemand Feature to tackle CoD concerns

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The sudden ban of Rs 500 and Rs 1000 was a great step by the Indian government to fight for black money, but its effects were clearly seen on common man’s life. Imagine you have Rs.500 in your wallet, and you come to know that you cannot use it anymore.

The ATM machines and banks were closed, what to do? You need money for everything, if not cash then card atleast. In this situation all you can think of is, an online wallet. Yes, that’s right away where you can have some cash stored in online wallet, just like in any bank account and use it when you have no cash or card.

Handling Cash Shortage Issues

Along with the common people, several e-commerce sites are having trouble regarding the payment on all their deliveries. If it’s already paid delivery it is well and good, but the orders with cash on delivery cannot be accepted, so many of these websites have decided to either stop cash on delivery or limit it to orders below a certain value.

We all are familiar with the idea of cash o delivery (CoD), as people find it more secure, fast or they simply do not have access to their pre-paid accounts. With this sudden ban, people are left with no other choice, not to worry, this e-wallet system might just put an end to this. Yes, the ‘Wallet on Delivery’, this helps users to pay on delivery through their e-wallet.

How the e-wallet System Helps?

This e-wallet system will definitely change your perception ongoing cashless. It’s not that bad as you think, all you need is internet and problem solved. So, be it shopping, traveling, eating, paying bills anything you can think of including hospital bills, you can get over it through e-wallets.

This Wallet on Delivery launched by Paytm and Freecharge help the users to pay on delivery through e-wallet. Let’s start from traveling, you can always book train and flight tickets online and pay through e-wallets, no need of cash. In fact, you can also recharge your metro cards through your cards, now even some auto rickshaws are accepting PayTM transactions.

Limitations of using e-wallets

Yes, but you won’t be able to accommodate any cheaper mode of traveling like you cannot opt for bus or local trains. Now, if we come to food, you can easily order your favorite dishes from your favorite restaurants online, with the help of food delivery apps like Swiggy, Zomato or the Food Panda.

These will get your hot sizzling food to your door step and you can easily pay through your cards or the e-wallets like the Paytm wallet. The same goes for ordering groceries, you can easily buy them and have it delivered to your door step and pay through e-wallet.

How is e-payment Implemented?

After all this the first question that comes to your mind is how? is the process too complicated or accompanies a big procedure/ the answer is no. In fact, it’s very simple. With this method, the courier boy can just have a QR code tag and the shopper an easily pay through Paytm when the parcel arrives at the doorstep.

People with no cash in their bank accounts can also enjoy the features of Paytm wallet. all you have to do is deposit your cash in ICICI Bank and Axis Bank, as Paytm has partnered with these two private sector banks. So, once you deposit cash, it will be loaded to your wallets directly.

How Snapdeal is handling e-payment

Just like Paytm, Freecharge owned by Snapdeal facilitates with similar features. The idea is very simple; the users can simply use the Freecharge wallet to pay for the products at the time of delivery. So, just like CoD the user can use the PoD option. This makes managing cash orders difficult which complicates logistics. But this is the best solution for people, today as they need not worry about the coming of new currency notes.

The working of Freecharge for PoD is very simple, the user will receive a pin to access the Freecharge app, once the user confirms it, the money will e deducted from the user’s e-wallet. So, there is no QR code mechanism. Currently, it is available only for Snapdeal, but very soon it will be expanding to other Snapdeal sites.

Flipkart is joining the race too!

It’s not just Paytm and Snapdeal but Flipkart too is in the race. Flipkart is including mobile swipe machines for across 3,000 pin codes to help in payment. All these e-commerce websites are assuring the best help they can, to assist their customers to stick with them and face less trouble with the demonetization of Rs500 and RS 1000 notes. Traders from all e-commerce websites are requesting to currently disable CoDs for sometime so that they are not charged in case the goods are being returned. Amazon India has already disabled the cash payments system, for certain time interval for any value of purchase.

This sudden demonetization of currencies has witnessed a rapid growth e-wallet system. it has been reported that Paytm has been an increase of 435% in traffic and registered 200% hike in number of app downloads. Freecharge, on the other hand has seen a growth of 12X in the average wallet balance as users bulked up their wallets.

Benefits of WoD Services

This WoD system will immensely limit the efforts of handling cash and thus, reduce the cost for e-commerce companies. However, this is a very high cost of returns for all CoD orders. As returns will gradually reduce when people start opting more for digital payment.

Madhur Deora, CFO at Paytm said it added one million new saved cards in two days. In his own words, ” App downloads have gone up by three times while offline transaction volumes have gone up by five times, adding that overall transaction volumes grew three times in last two days”.

The CEO and Co-founder of Snapdeal, which owns Freecharge, Kunal Bahl said, “ The launch of Wallet on Delivery is an absolute need of the hour for consumers.

More than a year ago, we had made a strategic decision to build India’s best digital payments platform to offer the fastest and most efficient payments experience in the country”.

How PayTM is providing Convenience to its Customers

According to Paytm it has over 2million transactions per day, while Snapdeal states that transactions worth 2,000-7,000 were being paid through its wallet Freecharge in last two days. In order to encourage e-wallets, Mobikwik has partnered with Myntra, Jabong, Big Basket and Grofers, which encourage the customers to go cashless and pay through Mobikwik wallet for their CoD deliveries.

Not just Paytm and Snapdeal, but the online grocer BigBasket has reported a hike of 25% in online transactions in last 2 days. In short, this change is good, you can go cashless and still have all the things you want. Of course, you need some amount of cash in handy for emergency situations. like the one where e-wallet is not accepted.


However this new idea is a great step towards the development of India. For now, this -wallet facilities are provided by few companies, but very soon these facilities would be available in all regions of India. Once a great man said “suffer today to enjoy tomorrow”. The phrase suits the current situation very nicely.

The decision affects lives of all the people in the country, but very soon its positive results will be enjoyed by all. The end of this year will mark lot of changes, in a good way for the country. First of all, a great step to fight corruption, followed by go cashless and go digital. This actually makes the concept of go digital more clear and appropriate.

Updated on 17-Jan-2020 12:20:13