A report by GoKwik, an e-commerce enablement platform based in India, revealed that prepaid orders surpassed cash-on-delivery (COD) transactions during the Valentine’s Day sale period. The trend indicates a shift in consumer payment preferences, driven by digital payment adoption and credit options. India’s personal gifting market, valued at $20 billion, continues to expand, influencing e-commerce dynamics.
GoKwik, a leading e-commerce enablement platform based in India, has reported a significant shift in consumer payment preferences during the Valentine’s Day sale period. According to its latest findings, more than half of all online purchases were made using prepaid payment methods, surpassing cash-on-delivery (COD) transactions for the first time in recent years.
The trend highlights the growing adoption of digital payments in India’s e-commerce sector. GoKwik, which specializes in checkout optimization and fraud prevention for direct-to-consumer (D2C) brands, noted that this shift was largely influenced by the availability of credit options and seamless transaction experiences provided by digital wallets and UPI-based platforms.
Changing Consumer Preferences in India’s E-commerce Space
The Indian personal gifting market, valued at approximately $20 billion, has been expanding rapidly, driven by increasing disposable income and evolving consumer behaviors. Traditionally, COD has been the dominant payment mode in the country due to consumer concerns over online fraud and product reliability. However, with fintech advancements and improved refund policies, prepaid transactions are gaining traction.
“We have closely worked with many partners to enable D2C brands to provide credit options, easy checkout experiences, and seamless transactions. The rise in prepaid orders during Valentine’s Day sales signifies changing consumer trust in digital payment methods,” a GoKwik spokesperson stated.
Impact on Retail and E-commerce Strategies
The rise in prepaid transactions is expected to influence future retail strategies. Many e-commerce brands are now incentivizing prepaid purchases by offering discounts, exclusive deals, and cashback offers to further reduce COD dependency. Additionally, businesses are investing in technology to improve fraud prevention and enhance payment security.
Industry experts believe that as fintech solutions continue to evolve, India’s online retail market will witness an increasing preference for prepaid orders over COD, streamlining logistics, and reducing return-to-origin (RTO) rates, which are typically higher in COD transactions.
With India’s digital payment ecosystem growing stronger and consumers becoming more comfortable with prepaid options, this trend is likely to continue, shaping the future of e-commerce in the country.
