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India is a Cash on Delivery (CoD) country and most online retailers provide this very easy option for buyers on their sites.

Release on Deliver, which has been adopted by the likes of Snapdeal and eBay India already, but that’s still only two examples in a massive sea of retailers.

Founded in 2011, the PayU Group caters to 5,000 merchants in India across categories, but is looking to snap up some big deals now.

With PayUPaisa, the RoD option will pop up for those who opt for CoD. PayUPaisa has launched a new payment option called Release On Delivery (RoD) using which customers can release the payment for the product purchased online after receiving the product.

The company states that this option has been launched with the intent of  helping customers gain more trust on the merchants, while also helping merchants reduce the high transaction cost incurred through third-party Cash on Delivery (CoD) services.

An internal survey done by PayUPaisa revealed that more than 35% of users who do Cash on delivery, can actually pay online! Further, 75% of these users choose to do CoD because of trust factor. They want to see the product before paying. 25% of the users do it because of convenience. It’s easier than entering so many numbers present on the card.

How does it work? During check-out, customers are shown multiple payment options such as credit card, debit card, netbanking or CoD to choose from.  On selecting CoD, RoD payment option is also offered to customers. On selecting RoD, payment can be made through credit card, debit card or netbanking. PayUPaisa releases the payment to the merchant either on receiving information from the buyer or by default after 3 days of product delivery.

What if something goes wrong with the buyer’s placed order?

In turn, RoD method promises to keep buyer’s money totally safe though various safety check points and PayUPaisa’s strong dispute resolution mechanism.


 Safety Checkpoint 1: Buyer’s money is kept safely with PayUPaisa and is not released to the merchant in first go.

 Safety Checkpoint 2: When buyer explicitly informs PayUPaisa to release the payments, only then the money is transferred to the merchant. In case if PayUPaisa doesn’t receive any confirmation from the buyer in 3 days after the product delivery, the payments are released to the merchant by default.

Safety Checkpoint 3: In an unlikely case, where a buyer faces a problem with the delivered product, he can raise a quick dispute with PayUPaisa’s dispute resolution team. This team will resolve the dispute in an unbiased way so that the buyer does not face any financial loss. The dispute needs to be resolved in maximum 12 working days and PayUPaisa refunds back the money to the buyer if the dispute is found to be genuine.

Nitin Gupta, Chief Executive Officer of PayU India said  ‘Release on delivery’ will be a win-win for e-commerce merchants and also online shoppers while removing the diseconomies of COD,We expect that in 9-12 months time, 20% of all CoD transactions will become Release on Delivery  transactions.”

This new payment option is like an escrow service.



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