7 in 10 Pinoys pay ‘cash on delivery’

MANILA  – A majority of Filipinos prefer cash on delivery (COD) as the mode of payment when shopping online, highlighting the prevailing distrust and wariness of consumers on merchants in the virtual space.

This is according to a survey by tech-enabled market research firm Agile Data Solutions Inc., which drew data from its mobile application platform Hustle PH with a sample of 300 respondents across the Philippines.

The study found that 71 percent of online shoppers prefer COD as their primary payment method, indicating a substantial gap compared to people choosing from a variety of online payment methods.

Payment centers and electronic wallets were the second choice for most people, with 14 percent of the respondents choosing these options.

Meanwhile, in-app wallets such as those by e-commerce giants Shopee and Lazada, scored 6.5 percent and 6 percent, respectively.

Agile Data Solutions founder Jason Gaguan, said COD payments provide a sense of security for consumers, allowing them to withhold payment until they receive and inspect the item.

He added that negative experiences, such as receiving counterfeit or damaged products and falling prey to fake sellers, also discourage online shoppers from using electronic payments methods.

The same study said that 28 percent of respondents echoed this sentiment, identifying product authenticity and product quality as their biggest concerns when shopping online.

Other considerations are the cost of packaging, scoring 17 percent, and the duration of delivery time, at 15 percent.

The company said that shoppers also increasingly rely on product reviews to guide their purchasing decisions, seeking reassurance before checkouts.

It added that another important finding in the survey is that 92 percent of the adults surveyed said they were able to save on costs by purchasing essential items online.

Seventy-six percent of respondents were also found to prefer online shopping over in-store buying because of vouchers and deals abundantly offered over the internet.

The other 34 percent said they preferred  shopping online to take advantage of free shipping sales promotions.