Cash-on-delivery (COD) has long been the backbone of e-commerce in Egypt and many MENA markets. For merchants, COD can seem like a necessity — after all, most buyers still prefer to pay cash when their orders arrive. But what many merchants don’t realize is that COD comes with hidden costs that quietly eat into their profits and growth potential.
1️⃣ High Return Rates
COD orders have some of the highest return and refusal rates in the industry — with up to 40% of deliveries either rejected or faked. This leads to wasted inventory cycles, additional shipping costs, and higher working capital requirements.
2️⃣ Price Inflation to Cover Losses
Merchants often increase prices by 10–15% just to offset the costs of COD-related returns, delivery failures, and reconciliation delays. But raising prices makes it harder to compete with regional or international e-commerce players who offer smooth prepaid options.
3️⃣ Cash Handling Risks
Courier companies and merchants face theft, fraud, and human error when collecting, storing, and reconciling large amounts of cash. These risks can result in direct financial losses or costly insurance premiums.
4️⃣ Delayed Settlements and Cash Flow Crunches
With COD, it can take weeks for collected cash to make its way back from the delivery partner to the merchant. This slow settlement process delays reinvestment in marketing, inventory, and operations — stunting business growth.
PeacePay’s Solution
PeacePay’s Secure Payment Hold solves these issues at the root. Buyers preload their payment into a secure wallet, but funds are only released when they inspect and accept their delivery by entering a one-time OTP. This means:
✅ Merchants get instant settlement once the order is accepted.
✅ Returns and refusals drop significantly since buyers are committed.
✅ Cash handling risks are eliminated, improving safety and accounting accuracy.
✅ Merchants can offer better prices because they no longer need to pad prices to cover COD losses.
With PeacePay, merchants can finally break free from the costly trap of traditional cash-on-delivery, enabling faster, safer, and more profitable e-commerce growth.
Ready to Cut the Hidden Costs of Cash-on-Delivery?
Start your journey toward safer, faster, and more profitable e-commerce today.
👉 Merchants: Contact us here to join PeacePay and unlock instant, secure Pay-on-Delivery.
👉 Delivery Companies: Partner with us to streamline cashless settlements and improve payouts.
👉 Have questions? Contact us and let our team show you how PeacePay can transform your COD operations.
Together, we can build trust and unlock new opportunities in cash-first markets.