When it comes to online shopping in India, payment preference can make or break a sale. Two options dominate Indian ecommerce: UPI (Unified Payments Interface) and Cash on Delivery (COD).

But which one do Indian customers actually prefer?

This blog breaks down UPI vs COD, how customer behavior differs across regions, and what sellers should offer to maximize conversions.

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Why Payment Choice Matters in Indian Ecommerce

Indian customers are highly payment-sensitive. If they don’t see a preferred option at checkout, they often:

• Abandon the cart

• Delay the purchase

• Choose another seller

Offering the right payment mix directly impacts sales.

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Understanding UPI Payments

UPI allows customers to:

• Pay instantly via Google Pay, PhonePe, Paytm

• Avoid entering card details

• Complete checkout in seconds

• Pay directly from bank account

UPI is fast, secure, and extremely popular on mobile.

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Understanding Cash on Delivery (COD)

COD allows customers to:

• Pay only after receiving the product

• Avoid advance payments

• Trust new or unknown sellers

COD builds trust, especially for first-time buyers.

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What Indian Customers Actually Prefer

Urban & Mobile-Savvy Customers

• Prefer UPI

• Expect fast checkout

• Comfortable with prepaid payments

Tier 2 & Tier 3 Customers

• Prefer COD

• Trust delivery before payment

• Often first-time ecommerce buyers

New Brand Buyers

• Choose COD initially

• Switch to UPI after trust is built

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UPI vs COD: Quick Comparison

Factor	UPI	COD
Payment Speed	Instant	After delivery
Customer Trust	High	Very High
Seller Risk	Low	High (RTO)
Cash Flow	Fast	Slow
Checkout Experience	Smooth	Slower

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What Should Sellers Offer?

The smartest strategy is:

Offer both UPI and COD

This gives customers flexibility and maximizes conversion rates.

Platforms like Bechna make it easy to:

• Enable UPI & COD together

• Manage both from one dashboard

• Track orders and payments easily

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How to Encourage More UPI Payments

Sellers can:

• Offer prepaid discounts

• Display trusted payment logos

• Provide smooth mobile checkout

• Build brand credibility

This reduces COD dependence over time.

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Why Bechna Is Built for Indian Payment Preferences

Bechna understands how Indians pay.

With Bechna, you get:

• UPI-first checkout experience

• Easy COD enable/disable

• Direct bank settlements

• Mobile-first order management

• Zero platform commission

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https://bechna.app/