 "Simpl launches AI-enabled Checkout Suite to eliminate CoD by 2028")
Simpl, a checkout network, has unveiled an AI-enabled checkout suite with the ambitious goal of phasing out cash on delivery (CoD) for its merchant base within the next five years.
The company revealed that six out of every ten orders placed online result in losses for its merchants. According to a statement by the company, “Estimates suggest that the total annual CoD order losses for merchants stand to the tune of $6-7 billion.”
In its latest offering, Simpl's Pay After Delivery feature enables merchants to temporarily block the transaction amount from a user's account limit and only complete the payment once the delivery has been verified.
Simpl also offers a return-to-origin (RTO) intelligence tool, which allows merchants to decide whether to show a CoD option based on user behaviour at checkout time. This innovative function is aimed at reducing returns and fraud, both of which can adversely affect a merchant's finances.
Additionally, the checkout suite provides an 'Address Intelligence' feature to assist merchants in assessing the quality of the address and identifying any associated risks.
“Indian consumers have demonstrated a robust preference for Cash on Delivery, with nearly six out of every ten customers choosing this convenient payment method. However, merchants are grappling with high costs, RTO losses, and burdensome working capital requirements due to CoD, all leading to financial losses. In response, we have developed the Checkout Suite to fulfill our vision of eliminating cash on delivery in e-commerce by 2028. By employing data science models and our industry-first Pay After Delivery solutions, we aim to assist merchants in reducing losses stemming from CoD orders and returns. This, in turn, will contribute to the growth of profitable and sustainable businesses,” said Puneet Singh, chief technology officer at Simpl.