A contactless payment-on-delivery solution for e-commerce that aims to bring the convenience of cashless payments to consumers’ doorsteps, replacing cash on delivery payments
To address the rising trend in online purchases and consumer preference to transact online, home delivery network Paperfly, in partnership with Mastercard and Eastern Bank Limited (EBL), on Sunday launched ‘Cashless Pay’ - a digital payment-on-delivery solution.
The service is available across Bangladesh to all consumers who want to experience the convenience and safety of cashless payments while receiving their online orders at their doorstep, replacing the existing cash on delivery (COD) payments, said a press release.
ICT State Minister Zunaid Ahmed Palak launched the service as chief guest, the release added.
Humayun Kabir, executive director of the Bangladesh Bank, Syed Almas Kabir, president of BASIS and Shomi Kaiser, president of E-Commerce Association of Bangladesh (e-CAB) were also present at the program.
‘Cashless Pay’ is an advanced solution designed by Paperfly with Mastercard’s payments technology served by EBL.
It is the first such solution that does not require a point of sale (POS) machine to complete the cashless transaction and allows consumers to make payments seamlessly, simply using their smartphone browsers through a highly secured connection.
Currently, around 95% of payments for online purchases in Bangladesh are made via cash-on-delivery (COD) when the buyer receives the goods.
However, Covid-19 has led to a marked shift from cash to digital payments as consumers adopt cashless and contactless modes of payment to avoid hygiene risks around handling banknotes.
"Some 90% of the country's total e-commerce transaction takes place through cash on delivery transactions. It is a limitation of the e-commerce sector. The newly introduced method will encourage people towards cashless transaction," Palak said on the occasion.
"It is a physiological issue that customers want to see the product before paying. So, now they can see the product while it is being delivered and can pay through cards, mobile banking or other digital platforms," said by Shahriar Hasan, chief executive officer of Paperfly.
Ali Reza Iftekhar, managing director and CEO of Eastern Bank Limited, said, “Digital payments are gaining trust among the users of our country and this ‘Cashless Pay’ service will complement to the cause significantly. We believe this will be the next step forward towards digital Bangladesh vision.”
“To support the government’s Digital Bangladesh vision, Mastercard has been working closely with partners in the industry to introduce solutions that enable easy access to digital payments,” said Syed Mohammad Kamal, country manager, Bangladesh, Mastercard.