PayUPaisa has introduced release on delivery (RoD), a new payment delivery option for e-commerce merchants in India.
RoD has been launched to allow the firm’s customers to gain more trust on merchants, while also helping merchants to reduce the high transaction cost incurred through third-party Cash on Delivery (CoD) services.
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PayU will charge about 2.9% per transaction from the merchants as their RoD fee.
RoD is prepaid mode of payment where a merchant will be paid through a credit/debit card or Netbanking instantly with payment gateway charges between 2% to 2.5%.
As 20% of the transactions are done in the $6m e-tailing industry are CoD, RoD is expected to reduce the cost incurred through CoD by almost four times.
PayU India co-founder and CEO, Nitin Gupta, said: "With the launch of RoD, we are expecting 20% of all CoD transactions to shift to RoD. The firm is in plans to add about 100 merchants by the end of this quarter."
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By GlobalData
