Here’s Why Malaysians Still Prefer Cash-on-Delivery (COD)

Shopping used to mean going out, but with the rise of digital marketplaces, many purchases are now made online. Malaysia’s e-commerce industry has seen a boom in recent years, with sales volume totalling up to US$23.5 billion in 2024. In parts of Malaysia, many still prefer to pay with Cash-on-Delivery (COD), which provides a good opportunity for businesses to tap into a larger market segment and gain a competitive edge. 

Cash payment methods are still relevant in a digitally driven world. Credit: Business Times 

1. Cash-on-Delivery is Popular in Suburban and Rural Communities 

Digital payment methods may dominate in major cities, but studies showed that 63.5% of Malaysians outside of Klang Valley still prefer using cash because it’s believed to be more secure. For many, cash remains the go-to payment method, especially when it comes to big-ticket items. It offers reassurance and control, allowing buyers to pay only when the product arrives safely in their hands. 

2. COD Reduces Cart Abandonment 

Making online purchases can be a tough decision, especially when buyers are unfamiliar with the seller or unsure about the refund process. This is why COD is still popular because it gives cautious shoppers more assurance and reduces hesitation. Additionally, businesses also benefit from CODs as it improves conversions up to 20-40%.  

Psst! Are you an online fashion retailer? Here’s a tip for you to convert returns into repeated business. 

The convenience of online payment methods is surprisingly not for everyone. 

3. Cash-on-delivery makes payment more accessible 

While digital payment platforms offer a seamless experience for many, they can be challenging for the older generation and those new to online marketplaces. In both scenarios, COD emerges as the ideal solution. It bridges generational and financial gaps, expands market reach, and makes online shopping more accessible. 

COD is More Than Just Cash, it is Evolving  

COD has transformed far beyond the simple exchange of notes and coins. With the integration of DuitNow QR and e-wallets, COD has become a versatile, hybrid payment method that caters to both cash and cashless preferences. In addition, CODs now also offer SMS verification, e-receipts, real-time tracking and contactless delivery for added convenience and safety. In Malaysia, COD still accounts for 14% of e-commerce payments as of 2024, proving it’s not going away anytime soon. 

Looking to enhance your business with COD? Look no further 

Businesses can open up their market to a wider audience while providing a trustworthy, reliable, and flexible payment method that also helps improve conversion rates with CODs. Partner with Pos Malaysia to further improve your business and benefit from this payment method. 

Pos Malaysia offers competitive rates starting at RM4.00 with up to 3 attempts for successful delivery and remittance within 2 working days after parcel drop-off. Moreover, our COD services also accept cash and DuitNow QR payment methods for greater flexibility.  

Register today and get your business up in just 3 working days.  

Conclusion 

Despite the growth of digital finance, COD remains a reliable payment method for many and provides expansion opportunities that benefit businesses and the market in unexpected ways. Partnering with Pos Malaysia to provide COD services unlocks new channels for conversion, trust, and growth.