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Amazon stops cash payments to curb Covid-19 spread

DigitalCIO Bureau by DigitalCIO Bureau
March 26, 2020
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Source: ETtech

A slew of online platforms including BigBasket, Flipkart, Swiggy, Zomato and Grofers too urged their customers to move to digital payments.

Amazon India has stopped accepting cash—the most popular mode of payment—for transactions to encourage contactless deliveries during the 21-day lockdown to curb the spread of Covid-19.

“New ordering is available only on essential products through pre-paid payment methods,” the online retailer said on its website.

The move helps delivery partners and customers stay safe by eliminating avoidable contact. It also makes the logistics process faster at a time when e-commerce companies are facing troubles in getting their frontline staff back to work.

Contactless delivery means that an e-commerce or food package is prepared, packed and delivered under the strictest health and safety standards and procedures designed to minimize or eliminate contact between the delivery partner and the end consumer.

“This is the opportunity to kill cash and shift to prepaid,” a founder of a last-mile logistics company said requesting anonymity. Such bold measures wouldn’t be a risk an e-commerce giant would take on a business as usual day, the person said.

A slew of online platforms including BigBasket, Flipkart, Swiggy, Zomato and Grofers too urged their customers to move to digital payments.

BigBasket said it hands over a paper bag to collect cash from customers and transfers the balance to its digital wallet. On average, around 60% of orders on the grocery delivery app are prepaid. For Swiggy, that number is closer to 66%. Zomato too has put out a strong advisory on its cash on delivery payment method. “Cash exchange can potentially become a channel for transmitting viral infection. Avoid cash exchange and pay online,” the food ordering company warned its users.

Security and community management solution firm MyGate too has partnered with Swiggy, Licious, Grofers and Dunzo to enable contactless deliveries of essential service for more than 7,000 gated communities.

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