About 60% of spends on etail platforms via digital modes

About 60% of customer spends on e-commerce platforms such as Flipkart and Amazon were through digital modes during the festival season this year, in a reversal from the pre-Covid-19 days when Cash on Delivery (COD) used to be the preferred payment method, multiple people with knowledge of the matter told ET.

COD has traditionally constituted as much as 70% of all e-commerce transactions. During the early days of the pandemic, COD transactions fell sharply, as most leading online marketplaces discouraged physical contact on home delivery, although it has picked up since.

Smartphone apps enabled by Unified Payments Interface (UPI) and e-wallets, along with debit and credit cards that offered incentives and EMI options, nudged consumers towards contactless modes at a time when physical cash-based transactions are being discouraged, the executives said.