Use Of COD Payments Remains Stable In The Increasing Era Of Online Transactions

JAKARTA - In the midst of the rapid growth of the e-commerce industry in Indonesia, the Cash on Delivery (COD) payment method remains the main choice for most consumers. Although the advancement of non-cash payment technology continues to grow, the use of COD is still very much needed in Indonesia for some basic reasons.

Not only reflecting consumer preferences, but the COD method is also considered to strengthen trust in the digital transaction process. In this context, the COD scheme shows the importance of alternative payment methods in building trust and facilitating online transactions in the Indonesian market.

In addition, the flexibility offered by COD also allows consumers to make payments when the goods are received, thus providing a sense of security and comfort for those who are still hesitant to use online payment methods.

Lion Parcel's Chief Marketing Officer, Kenny Kwanto, said that delivery services have now become a necessity that also supports people's shopping activities. However, in responding to the development of existing online shopping, various payment options are needed by adjusting the market segment, one of which is paid on the spot or known as COD.

"In the midst of digitization, the trend of COD payments is also growing. It is not impossible that the existing system and services can contribute to encouraging public transactions to more digital access," said Kenny, in a written statement, Monday, June 10.

Regarding the innovations presented, Kenny added, QRIS payment options that are increasingly mushrooming amid digitalization are also now available to customers who need more comfort in the COD payment process.

On the other hand, the COD payment method also requires attention so that the safety and comfort of buyers and sellers remains guaranteed.

For example, in terms of e-commerce, Tokopedia's Head of Communications and ShopTokopedia, Aditia Grasio Nelwan said, Tokopedia strives to ensure a safe experience for sellers when utilizing the Payment feature on the spot.

One way is that users who do not make payment of payment transactions on the spot for up to two times will be temporarily closed the option of paying on the spot for these users for 60 days.

"After the user feels the ease of transacting online through the Payment feature on the spot, we hope that users can also take advantage of digital payment methods so that they can participate further in increasing national financial inclusion and digital economic equity," said Aditia.

Previously, the results of a survey by the Central Statistics Agency (BPS) showed that the COD or cash payment method was the most widely used payment method, reaching 83.11 percent in 2022.

Seeing this, there are several reasons why COD is still needed in Indonesia. First, this scheme allows to reach a population that does not yet have access to banks or known as unbanked population. In Indonesia, there are still many people who do not have access to banking services, so COD is a relevant solution for them.

In addition, COD also plays an important role in bridging transactions from offline to online (O2O). For consumers who are more comfortable transacting directly in traditional stores or markets, the cash payment method when receiving goods directly at home is a more attractive option.

Esther Sri Astuti as Executive Director of the Institute for Development of Economics and Finance (INDEF) stated that the choice of online shopping payment through COD is still widely chosen by the public because it makes it easier.

"This is a win-win solution for consumers and merchants because payments are made when goods arrive. In addition, COD provides its own security for those who are not sure about shopping security through online platforms," said Esther.

The high use of banknotes in several regions in Indonesia is also another reason why the COD scheme remains relevant. In areas especially outside big cities, where the circulation of banknotes is still very high, COD is an easier payment option and is accepted by the public.

In addition, in some cases, COD can increase consumer confidence, especially for those concerned about the security of online payments or the quality of the goods to be received. This can help increase consumer sales and confidence in sellers, as well as minimize the risk of payment for both parties.