Offline-to-online (O2O) commerce fashion e-commerce portal Fynd has put an end to its cash on delivery (CoD) payment option for all the new orders placed on its app and website.The company said that in September 2017, out of the total orders received, Fynd faced 60% leakages due to problems like cancellations, frauds and RTOs etc apparently because of cash on delivery transactions.
The company said that it stopped CoD from 20th January and after that the fulfilment rates were, and the leakages went down to 3%. It added that this step helped the company in bringing down the operational cost as the order getting returned at the doorstep by customer still has the operational cost incurred.
Last month, Fynd secured Series C funding from the lead investor, Google, with participation in the round also coming from IIFL, Kae Capital, Singularity Ventures, GrowX, Tracxn Labs, Venture Catalyst, Patni Family Office and Hong Kong-based Axis Capital among other angel investors.
Problems with going completely cashless in India
Two years ago, MediaNama had written about why cashless is going to be tough in India, besides infrastructural and ecosystem issues, we had pointed out that cash isn’t the same as cashless because:
- Not enough people have Internet connection (which can survive massive usage in times of emergency), or use it regularly, on a smartphone, which supports all Indian languages, with an application that supports all Indian languages. Internet connectivity isn’t reliable or available or as cheap for users as cash.
- The process of making digital payments in India is not easy and is time-consuming. (OTPs, wallet availability, net banking sign up etc)
- Making digital payments is costlier either for the merchant or the customer, or both. (read this post for explanation)
- Digital payments can lead to major security risks. A switch to cashless means that each and every transaction is tracked and documented. This is great for governance, with taxation, but there is no protection for citizens, as to who owns that data, whom they can share it with, and how it will be utilised.