Cash On Delivery Countries; and the Future of Cash on Delivery

CoD is still used across many countries

  • Written by Alex Dolce
  • Published on December 20, 2023
  • Time to read 9 minutes


With an ever-increasing technological world, it’s no surprise that cash on delivery (CoD) and the use of cash is declining. Digital and mobile payments, with their quick and easy utilization, have interrupted all marketplaces. However, that doesn’t mean cash is not essential for economies. CoD is still used across many countries and can be an extremely useful payment method for a broader range of populations. So today, we look at what CoD is, how it is essential in today’s e-commerce marketplaces and the top Cash on Delivery Countries. That way, you can better understand CoD’s continuous significance in the e-commerce and global economy. 

So, let’s get right to it!

What is Cash On Delivery?

Cash on Delivery (COD) is a payment method in retail and e-commerce transactions. With COD, a customer places an order for products or services and chooses to pay for them in cash at the time of delivery. Therefore, a customer must not make any advance payment or use electronic payment methods before receiving the goods or services. Instead, the payment is made directly to the delivery person or courier when the order is delivered to the customer’s doorstep.

Why is it Important?

Even though CoD (and cash payment in general) is on the decline, it is still vital and relevant for several reasons. So, let’s go over some of the critical reasons why CoD remains essential:

  1. Inclusivity: CoD accommodates individuals who do not have access to or prefer not to use digital payment methods, bank accounts, or credit cards. Therefore, it ensures that many consumers can participate in e-commerce and purchase.
  1. Trust and Security: CoD offers customers a level of trust and security. So, they can physically inspect the product or service before making a payment, reducing the risk of fraud or receiving subpar items.
  1. Convenience: COD is a convenient payment option for some consumers, especially those uncomfortable with digital payments or living in areas with limited banking infrastructure. Overall, it simplifies the buying process by eliminating the need for online transactions.
  1. Reducing Online Payment Risks: In regions where online payment fraud is more common, CoD can be a safer alternative. So, it ensures that customers only pay for what they receive, reducing the risk of unauthorized charges or payment disputes.
  1. Cash-Dependent Economies: In some countries, cash is still a predominant currency, and many people prefer to use cash for everyday transactions. Thus, CoD caters to the needs of these cash-dependent economies.
  1. Enhanced Customer Satisfaction: CoD can lead to higher customer satisfaction. This is because customers can physically interact with the product. Therefore, they can ensure it meets their expectations before making a payment.
  1. Addressing Limited Internet Access: In areas with limited or unreliable Internet access, digital payments can be challenging. So, CoD helps overcome this barrier and allows residents to make online purchases.
A bar chart displays estimated transactional values of top cash on delivery countries.

Top Cash On Delivery Countries (Per Region)

The Global Payments Report 2023 is an extremely useful guide and insight into Cash on Delivery’s relevance in every country. According to the report, Cash on Delivery as a Global e-commerce payment method is supposed to drop from 2% to 1% from 2022-2026. However, CoD still has relevance across many countries in e-commerce. 

The Global Payments Report at FIS Global, estimates the transactional value of 2022 ecommerce payment methods in each country. This includes Cash on Delivery. Most percentages in the CoD category are relatively low. However, there are some standouts. 

For each global region, here are where the countries land in terms of CoD use:

In the Asian Pacific (APAC) region:

  1. Vietnam (18%)
  2. Philippines (15%)
  3. Indonesia (11%)
  4. Thailand (10%)
  5. Taiwan (9%)
  6. Malaysia (6%)
  7. India (5%)
  8. Hong Kong (3%)
  9. China & Japan (2%)
  10. Australia, New Zealand, Singapore, South Korea (1%) 

In Europe:

  1. Turkey (6%)
  2. Germany, Ireland, Italy (4%)
  3. Belgium & Spain (3%)
  4. Finland, France, Norway, Poland (2%)
  5. Denmark, Netherlands, Sweden, UK (1%)

In Latin America (LATAM):

  1. Colombia & Peru (10%)
  2. Argentina (4%)
  3. Mexico (3%)
  4. Chile (2%)
  5. Brazil (1%)

Middle and Eastern Africa (MEA)

  1. Nigeria (17%)
  2. Saudi Arabia (10%)
  3. South Africa (9%)
  4. UAE (7%)

North America

  1. US (1%)
  2. Canada (0%)

Top Cash On Delivery Countries (Global)

Moving forward, it’s easy to separate the top users of CoD with the information above. Overall, the top 10 CoD countries – percentage of use within their region – globally are as follows:

  1. Vietnam (18%)
  2. Nigeria (17%)
  3. Philippines (15%)
  4. Indonesia (11%)
  5. Thailand (10%)
  6. Saudi Arabia (10%)
  7. Colombia (10%)
  8. Peru (10%)
  9. Taiwan (9%)
  10. South Africa (9%)

Wrapping it Up

To conclude, while the era of cash may be declining in many parts of the world, Cash on Delivery continues to play a role in the global economy and e-commerce landscape. Overall, it has unique benefits, inclusivity, and trustworthiness, making it a crucial payment method. This is particularly true in regions where digital payment methods are less widespread or preferred. So, as we move forward in this dynamic digital age, the future of cash on delivery may evolve.

However, it is still significant, and it will be interesting to see how it evolves in the coming years and age of digital commerce. Remember, it is important to familiarize yourself with e-commerce payment methods overall, as there are some that might provide more benefits to you than you think. 

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