One of the major contributors towards the success of ecommerce in India has been cash on delivery (COD), which has imbibed a sense of security among customers that they won’t lose their money online while shopping.

Nearly two decades later and despite the availability of multiple payment options, including UPI, many still prefer to pay for their online purchases when they arrive, even if it means shelling out an extra few bucks.

An IIM-Ahmedabad study shows that over 65% of ecommerce transactions in India are CODs. It further highlights that the country’s fast-paced ecommerce space, which is likely to surpass $400 Bn by 2030, has failed to reduce this high rate of COD orders.

So, why are we discussing it now — after more than a decade-long entry of ecommerce in India. Well, the answer to this is simple — this mode of payment has today become a pain point for smaller D2C businessmen, who are most vulnerable to cancellations, high return rates, and undelivered products.

Not just this, CODs also increase operational costs and delay cash flow, making it difficult for newer brands to scale.

Despite a sustained spike in digital payments, this trust gap could not be bridged. And, this is where Simpl found the sweet spot.

The fintech startup drew its inspiration from the traditional khata system when Nitya Sharma founded the company in 2015, which lets you make payments with just one tap on your phone screen without debiting your account on the spot.

“Simpl simplifies the ecommerce experience for consumers with a one-tap checkout experience,” says Sharma, cofounder and the chief executive officer of the startup.

“When I saw the clear trust gap between consumers and ecommerce platforms, I realised that people wanted to go cashless, yet they were opting for CODs just to feel more secure. With Simpl, we are bridging this very gap – trying to unlock the true potential of Indian ecommerce,” he adds.

In a candid interaction with Inc42, Sharma shares how Simpl works to improve the experience of online shoppers, new products the company is working on, how it is using advanced neural networks in its operations and, last but never the least, how it is solving crucial business problems while balancing the stringent fintech regulations in India.

Here are the edited excerpts from the conversation:

Inc42: Given that 65% of ecommerce transactions in India still rely on cash-on-delivery, how Simpl aims to shift this paradigm and build trust in online........

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