UPI is rising, but cash on delivery still drives India’s e-commerce beyond metros
Cash on delivery remains about 60% of Indian e-commerce orders and can reach 75% in smaller cities, even as UPI expands. Brands are using AI risk scoring, address checks, partial CoD and prepaid incentives to curb the 20–30% return-to-origin burden.
Cash on delivery remains dominant in Indian e-commerce, particularly beyond metros, despite UPI adoption. Brands including Miraggio and Sirona are using AI risk scoring, address verification, partial CoD, BNPL and UPI mandates to reduce return-to-origin losses and working-capital pressure.
Why this matters
The sector is balancing wider digital-payment adoption with operational realities beyond metros. It follows signals that FDI easing could let foreign-funded e-commerce firms hold inventory for exports.
Omni-channel is steady, with 1,582 signals in the past 90 days; QoQ change was not provided.
Also reported by
- Financial Express · BrandWagon — 1h after first sighting