Subscribe
Logo
Logo
  • Topics Icon Topics
    • AI Icon AI
    • Banking Icon Banking
    • Blockchain/DeFi Icon Blockchain/DeFi
    • Embedded Finance Icon Embedded Finance
    • Fraud/Identity Icon Fraud/Identity
    • Investing Icon Investing
    • Lending Icon Lending
    • Payments Icon Payments
    • Regulation Icon Regulation
    • Startups Icon Startups
  • Podcasts Icon Podcasts
  • Products Icon Products
    • Webinars Icon Webinars
    • White Papers Icon White Papers
  • TechWire Icon TechWire
  • Search
  • Subscribe
Reading
Digitising Cash on Delivery with the help of BNPL
ShareTweet
pay on delivery
Handsome Young Homeowner Receiving an Awaited Parcel from a Cheerful Courier. Postal Service Worker Comes to the House to Make a Door to Door Delivery and Get a POD Signature on Tablet.
Home
eCommerce
Digitising Cash on Delivery with the help of BNPL

Digitising Cash on Delivery with the help of BNPL

Isabelle Castro Margaroli·
eCommerce
·Sep. 28, 2023·2 min read

The move online has opened out the world of commerce. From the comfort of their home, consumers can search across borders for unique and varied products and competitive pricing. Payment products have evolved to meet the e-commerce demand, targeting pain points in a bid to maximize sales for the merchant, minimize friction for the consumer, and boost the sector further. 

On 11 September, Splitit Payments announced that it was rolling out a Pay after Delivery function in the US in partnership with AliExpress and Checkout.com. 

After successful launches across Europe and Australia, Splitit CEO Nandan Sheth said the company was “thrilled” at the results, and consumers had shown strong demand for the function.

But What Is Pay After Delivery 

What is Pay After Delivery? I hear you ask. 

Remember the days when all deliveries were “cash on delivery” (in some areas, they still are)? Pay after delivery brings this payment option to the digital world. 

While it is increasingly popular in Europe, the payment solution is fairly new to the US market and stands to bring a new dynamic to e-commerce. 

Splitit has offered white-label installment products for some time. Focusing on a demographic that has high credit ratings and access to credit cards, the company has launched BNPL products that use the existing credit available to the consumer via the consumer’s credit card to make loan decisions. This lay the foundation for the pay-after-delivery product.

“We talked to some of our cross-border merchants, and they said their biggest issue is that it takes them time to ship the goods,” said Sheth. “They don’t always have logistical footprints in all of the countries that they serve, and it could take 45-75 days to get the product to customers. The consumer has to trust us, and in some cases, they just won’t buy.”

According to Statista, abandoned cart rates can be as high as 88%. Splitit found that some of the main reasons for cart abandonment include a lack of trust in the security of the online purchase, long and complicated checkout processes, and the appearance of extra costs on checkout.

Sheth explained that due to Splitit’s time in the installment loan space, the company was able to bring the pay-after-delivery product to their merchants with minimal friction. 

“We’re pivoting technology that we already have in a product into a new market,” he said.

The pay-after-delivery option was particularly valuable for their cross-border merchant customers, like AliExpress. 

“One of the biggest problems we were seeing was, with a pure installment solution, we just weren’t seeing the traction that we were with an in-market merchant that was not cross border,” he continued. As a result, they brought the pay-on-delivery feature. 

“The consumer makes the purchase and pledges to pay. And they only pay when they receive the goods or service,” he said. “It instills confidence in the consumer. It allows the merchant to have an effective value proposition. And that allows us to use an existing installed platform which we already have, and pivot that to this new solution.”

Consumers can choose to pay the full amount or opt to pay in three installments on delivery. When the purchase is received, they can also choose to return the product before making the payment, thus avoiding the wait for a refund. Sheth also explained that the company was exploring additional functions, including allowances for “try before you buy” returns and deposits.

RELATED: The growing problem of online disputes explained

  • Isabelle Castro Margaroli
    Isabelle Castro Margaroli

    Isabelle is a journalist for Fintech Nexus News and leads the Fintech Coffee Break podcast.

    Isabelle's interest in fintech comes from a yearning to understand society's rapid digitalization and its potential, a topic she has often addressed during her academic pursuits and journalistic career.

    View all posts
Tags
BNPLecommercepay on delivery
Related

Kueski, fintechs ride the BNPL wave in Mexico, where cash is still king

Aplazo bags $45B from QED investors to expand BNPL in Mexico

Embedded lending’s many considerations

Editorial Cartoon for May 9, 2024

Popular Posts

Today:

  • Ahead of AIOutsmart Pricing Objections Before They Arise with AI Jul. 1, 2025
  • Revised-AI-InvoiceAI Faces Skepticism. Startups Say: OK, Pay When it Works Jun. 25, 2025
  • Stylizedhouse-with-EKGFintech x the One Big Beautiful Bill Jun. 26, 2025
  • Globe-money-symbolsOPINION: Why Brazil and India are leading the global digital shift through payment innovation Jun. 24, 2025
  • Paraform Founders, Jeffrey Li and John KimFunded: Paraform raises $20M to put top recruiters, not AI, in the driver’s seat Jun. 27, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • TechNexus The AI IssueSteal Like an AI? Defining Fair Use & Creativity Jun. 25, 2025
  • PayabliFunded: Payments infrastructure co Payabli lands $28M Series B to AI-ify Jun. 20, 2025

This month:

  • WP UmbrellaTo Bank or Not to Bank: The ILC Question Jun. 5, 2025
  • DanMurphy-FN-headshotCFPB’s Next Open Banking Battle Begins Jun. 3, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • ai-work-nexusWalkMe Vets Declare War on SaaS Bloat with $10M Seed for Autonomous Agents Jun. 10, 2025
  • Ben Hemani, Founding Partner at Bison VenturesThe Risk and Reward of Betting Big on AI’s Next Frontier Jun. 4, 2025
  • Jon StonaTips from Airwallex x McLaren on Making the Best of a Fintech Sponsorship  Jun. 18, 2025
  • Ironclad State of AI ReportThe Economics of AI Trust Jun. 11, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • TechNexus The AI IssueMeeker’s AI Bombshell + The VC Betting on AI Reshaping The Physical World  Jun. 4, 2025

  • About
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms
Subscribe
Copyright © 2025 Fintech Nexus
  • Topics
    • AI
    • Banking
    • Blockchain/DeFi
    • Embedded Finance
    • Fraud/Identity
    • Investing
    • Lending
    • Payments
    • Regulation
    • Startups
  • Podcasts
  • Products
    • Webinars
    • White Papers
  • TechWire
  • Contact Us
Start typing to see results or hit ESC to close
lis digital banking USA Lending Club UK
See all results