By Carl Rogel Inocentes
PAYO, a gateway that manages and simplifies Cash on Delivery(COD), has launched its new platform in a bid to help simplify and improve the productivity of online businesses and enable them to fully take advantage of the e-commerce platform.
Ofri Kadosh, co-founder and CEO of PAYO, said that the full-suite of the new platform’s capabilities will help to minimize cancellations and increase revenues while allowing merchants to better navigate the process.
Ofri Kadosh
co-founder and CEO of PAYO
“We know the struggle of businesses operating in the e-commerce spaceand what they have tocontend with particularly when it comes to integrating cash-on-delivery in their payment process. One of the main challenges areorder cancellations, which happens to about 30 to 35 percent of their transactions. For merchants, this means anautomatic loss in revenue”
In the Philippines, e-commerce is a fast-growing industry, especially since Filipinos spend 8.5 hours online a day. Around 33.3 million of the population use smartphones while 69M are active internet users. In 2016, the annual e-commerce revenue has a total of $1.5-Billion.
Furthermore, Filipinos lead the world globally in terms of amount of time spent on social media, spending an average of four hours and 17 minutes a day on social platforms, according to a 2017 report by social media management platform Hootsuite and social media consultants We Are Social Ltd.
Kadosh said local merchants need to integrate COD in their business model given that 93% of the Filipinos prefer paying cash when buying online. Only eight percent of the population carry a credit card while 72% still do not have bank accounts.
PAYO developed a platform that will allow for both the merchants and their consumers to experience better and faster COD transactions. It works as an interface that can be added to the merchant’s shopping carts. Once the consumers start placing their orders, a pool of data scientists will then process every sale, as well as to record and analyze the clients order history.
PAYO developed a consumer data analysis that builds credit history for COD consumers and employs fraud detection to identify potentially problematic accounts minimizing the incidence of cancellations even before it leaves the warehouse.
Working with any courier, PAYO Solution integrates courier optimization algorithms to choose the most convenient and practical type of courier to use.