As digitalization peaks, cash-on-delivery (COD) remains a highly relevant and popular payment method for consumers, especially in emerging markets. Despite the rise of digital wallets, online banking, and contactless payments, COD continues to thrive in regions like India, Indonesia, and parts of the Middle East and Africa. For game developers looking to broaden their reach, incorporating COD into their payment strategy can be a game-changer in expanding market share and driving revenue.

What is cash on delivery and how does it work?

COD is short for cash-on-delivery, collect-on-delivery, or cash-on-demand. The term has revolutionized online shopping by giving customers the comfort of paying after they receive the goods, making it a more unique payment method where the consumer pays for a product or service only after it has been delivered to their doorstep. The process is simple: This process ensures customers only pay upon receiving their goods, adding flexibility and security to their purchasing experience. And, contrary to what its name suggests, COD doesn’t have to exclusively involve cash transactions. Consumers can also pay via mobile transactions, cards, or checks, making it a versatile and flexible option. The most common example of COD is in food delivery. When a customer places an order but chooses not to prepay, the delivery driver collects the payment upon arrival. If the payment isn’t made, the transaction is void, and the goods are returned. This method assures customers that they will pay only after receiving their orders, which increases their trust in the service.

Market trends: The importance of COD in emerging markets

Despite the global shift to digital payment methods, the COD market is experiencing significant growth. In fact, the global COD market is expected to reach $578.4 billion by 2025, up from $267.5 billion in 2020 according to Statista. This growth is being driven by a variety of factors:

• Increasing internet and smartphone penetration in developing regions
• The continued rise of e-commerce in these areas
• Low levels of trust in credit cards and other online payment methods

In markets like India, for example, COD remains the preferred payment method for over 70% of e-commerce transactions. This is largely due to the low penetration of credit cards and concerns around online security. Similarly, countries across Latin America and Africa show a strong preference for COD, where financial inclusivity is still a challenge. A great example of COD in action comes from Indonesia’s ride-hailing service, GO-JEK. Through their digital wallet, GoPay, customers can top up their balance in various ways, including cash. When purchasing items, consumers can opt to pay in cash upon the arrival of a GO-JEK driver, providing an accessible and secure payment option.

Why COD should be part of your payment strategy

For gaming businesses looking to grow their user base in emerging markets, integrating Cash on Delivery (COD) into their payment options can be a strategic move. High percentages of the population in places like India, Indonesia, and parts of Africa not only rely on COD due to limited access to traditional banking services, many paying customers also have concerns about online payment security. The advantages of COD for game developers So, what are the benefits of offering COD as a payment option in your game? CONVENIENCE FOR SHOPPERS COD provides a seamless shopping experience for users, allowing them to inspect their purchase before committing to payment. This is particularly beneficial for new or hesitant customers who may be wary of online transactions. In the gaming world, where trust and a seamless experience are essential, COD allows gamers to feel comfortable knowing they can receive the product first before handing over their money. This convenience builds loyalty and trust with the customer base, increasing the likelihood of repeat business. EXPANDING REACH AND INCLUSIVITY COD opens the door to customers who may not have access to online payment methods or credit cards, particularly in developing regions. By offering COD, game developers can tap into a broader, financially inclusive audience, increasing the chances of converting users who otherwise wouldn’t make a purchase. BOOSTING CONVERSION RATES Offering COD can help game developers increase their conversion rates. Many potential customers may abandon their purchases due to the lack of accessible payment methods or security concerns with digital payments. COD removes those barriers, giving customers an easy and secure way to complete their purchases. With fewer obstacles, more gamers are likely to follow through with their purchase, driving up conversion rates. SECURITY AND TRUST In regions where there is a lack of trust in online transactions, COD can help alleviate security concerns by eliminating the need for customers to input sensitive financial information. This method reduces the risk of identity theft or credit card fraud, giving customers more confidence in their purchases.

Leverage cash-on-delivery

As the global gaming industry grows, particularly in emerging markets, payment flexibility is crucial to expanding your reach. Cash-on-delivery continues to be a trusted, widely-used payment method in many regions where digital banking has yet to fully penetrate. By offering COD, game developers can:

• Acquire more users
• Increase conversion rates
• Drive more sales
• Create a seamless and secure payment experience.

The Xsolla Payments solution makes it easy for you to offer COD and other alternative payment methods, enabling seamless checkout experiences that resonate with players worldwide. We support GO-JEK’s GoPay, which allows customers to pay with cash-on-delivery through their ecosystem, and we're continually looking to expand our payment portfolio to introduce more COD options that cater to diverse player needs. With over 700+ payment methods across 200 geographies, Xsolla Pay Station ensures that your players can complete purchases with ease, no matter where they are or how they prefer to pay. Additionally, our intuitive, multi-platform interface provides seamless checkout experiences that resonate with gamers globally, allowing you to reach more players and increase your revenue. Whether you’re looking to grow your revenue in markets like India, Indonesia, the Middle East, or Africa, Xsolla can help you unlock new opportunities with a secure, multi-platform interface tailored to your needs. Ready to tap into COD to drive more sales and capture untapped markets? Connect with an Xsolla payments expert today at business@xsolla.com to get started.