Will convert cash on delivery orders to pre-paid orders and reduce losses on CoD orders for online retailers by up to 35%
Also allows online retailers to automate Cash on Delivery refunds using Cashfree’s Cashgram product
Payments and banking technology company Cashfree has announced its partnership with Logisy, a 360° RTO (Return To Origin) optimization and fraud prevention company for e-commerce websites. The partnership will enable merchants to convert cash on delivery (CoD) orders to pre-paid orders, reducing losses, and also automate and speed up their CoD refund process significantly.
Online retailers have always faced high return rates and resulting losses on CoD orders, which still remains the most preferred mode of ordering. With this partnership, Logisy detects orders likely to be returned to origin (RTO) and converts them to pre-paid orders by sending a Cashfree enabled payment link to the buyer over WhatsApp. Additionally, when merchants had to process CoD refunds before, it involved a slow and error-prone process of collecting the customer’s bank account details, adding a payee and processing the refund. However, with this integration, Logisy’s Return Center simply sends a payout link over WhatsApp, where the customer can enter their bank account, wallet or UPI details and receive the refund immediately. This is helpful since processing refunds happens to be the major source of support tickets and customer grievance for online retailers.
Although businesses have faced various hurdles during lockdown, along with limited technological awareness among many SME owners, Logisy has observed a jump in virtualization of retail stores and with it, the need for ways to curb RTO orders. Together, the two companies will enable the increase of prepaid orders by up to 35% for Indian e-commerce merchants. This partnership is also set to provide a frictionless way to automate refunds by harnessing Cashfree’s Cashgram, a way to instantly send out money.
Reeju Datta, Co-founder of Cashfree, said, “Cashfree’s suite of digital payment solutions being harnessed by Logisy to empower India’s SMEs is a positive step for the country. As we move rapidly towards a digital-first economy, it becomes imperative for small and medium enterprises to embrace digital payments at scale in order to grow their businesses. Logisy with its innovative RTO detection and prevention suite will help merchants improve their bottom-lines, and we are glad to tailor payments and banking solutions for them.”
Monodeep Bhattacharjee, CEO at Logisy said, “We are delighted to partner with Cashfree to enable our merchants with ways to increase transactions at their e-stores. Due to the COVID situation, many SMEs have started adopting the e-commerce route to have a wider customer base. Logisy seeks to empower these SMEs to have an RTO-free journey while automating various processes including communications with their customers. With this partnership, we will support our merchant partners to streamline business operations by automating CoD refunds and increase overall paid orders.”
Logisy offers Indian e-commerce merchants a platform to reduce their RTO losses, establish automated event-based communications with buyers over WhatsApp, and automate various repeat processes thus saving the merchants time and effort.
Cashfree has also introduced solutions like Instant Settlements on its payment gateway; recurring payments via Subscriptions; and a UPI Stack with 15 ready-to-use integrations for all business payment needs including collections, disbursals, and verifications using UPI infrastructure. The Instant Settlement feature launched at the beginning of 2020 helps enterprises access funds within 15 minutes of payment capture via its payment gateway as compared to the industry standard of two to three business days. The feature also helps online businesses with increased working capital availability and has witnessed rapid adoption. Cashfree aims to sign up 100,000 merchant partners by the end of the current fiscal year.