Karandaaz Pakistan has partnered with PostEx to address a major challenge in Pakistan’s booming online shopping industry: the overwhelming reliance on cash-on-delivery (COD) payments.
Currently, cash reigns supreme in Pakistani e-commerce, accounting for a staggering 90% of all transactions. This heavy dependence on cash hinders industry growth due to inefficiencies and the burden of managing large amounts of physical currency. The Karandaaz-PostEx partnership aims to revolutionize this system by introducing a pilot program for digital COD payments.
The pilot program will be rolled out in six major Pakistani cities. Customers will be offered various digital payment options at their doorstep, including QR codes, pay-by-link, and software point-of-sale systems. This initiative has several key objectives.
Firstly, the program will gauge customer interest in these new digital payment methods. Understanding consumer willingness to adopt these technologies is crucial for wider implementation. Secondly, the pilot will evaluate the business viability of digital COD for e-commerce service providers. Analyzing the economic benefits will encourage broader adoption within the industry.
Thirdly, the program aims to drive cashless transactions in Pakistan. By promoting digital payments, the initiative seeks to create a more streamlined and efficient digital economy. Finally, the pilot will gather valuable data on the effectiveness of digital COD. These insights will be used to inform future industry transformation and further develop digital payment solutions.
The importance of this partnership is highlighted by statements from key stakeholders. Waqas ul Hasan, CEO of Karandaaz, emphasizes the significance of the collaboration for creating a cashless Pakistan. He believes promoting digital payments will contribute to economic growth and empower both consumers and businesses.
Jawad Mirza, CEO of PostEx Logistics, acknowledges the challenge posed by cash dependence and the potential of partnerships to move the e-commerce market forward. He emphasizes the need for innovative solutions to unlock Pakistan’s true e-commerce potential.
Sharjeel Murtaza, Director of Digital Financial Services at Karandaaz, identifies the dominance of cash transactions as a barrier to e-commerce growth. The pilot program tackles this issue by enabling secure digital payments at the doorstep, fostering a robust digital payment ecosystem that will pave the way for a thriving e-commerce future in Pakistan.
This initiative signifies a major step towards a digital future for Pakistan’s e-commerce landscape. By promoting digital COD payments, Karandaaz and PostEx hope to revolutionize the online shopping experience, boost the digital economy, and pave the way for sustainable economic growth.
