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Nearly half of Indian online orders still use COD, exposing a trust gap UPI hasn’t bridged yet
India
Published on 15 May 2026
UPI hit records, yet cash at doorstep still wins
Cash on delivery remains central to India’s e-commerce even as UPI records soar, with industry estimates putting COD at close to half of all online orders. The article argues the real driver isn’t payment convenience but trust: first-time buyers in Tier-2 and Tier-3 areas fear delivery delays, wrong items, or refund hassles, so COD lets them inspect before paying. Businesses are now using data-based risk models, partial prepay, and verification to limit losses while keeping access for cautious shoppers.
- Industry estimates: COD accounts for close to half of online orders
- UPI growth hasn’t shifted behavior for many first-time buyers
- COD persists because it reduces perceived risk around delivery and refunds
- COD increases returns and delays cash remittance for sellers
- Brands report conversion drops when COD availability is restricted
- Platforms use data-led risk models and checks to manage COD losses
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times