Karachi, In a significant move to enhance the e-commerce sector in Pakistan, Karandaaz Pakistan has partnered with PostEx to digitalize cash-on-delivery (COD) payments across the country. This initiative is set to address the dominant yet cumbersome COD payment method that currently represents about 90% of e-commerce transactions in Pakistan.

According to Karandaaz, the partnership aims to introduce digital payment options at the customer’s doorstep, including QR codes, pay-by-link, and software point-of-sale systems. These efforts are part of a broader strategy to reduce the reliance on cash transactions within the e-commerce industry, which has been identified as a significant barrier to its growth and efficiency.

The collaboration will initially launch a pilot program in six major cities to evaluate consumer response to the digital payment methods and establish a viable business model for widespread adoption. Waqas ul Hasan, CEO of Karandaaz, emphasized that this partnership is crucial for advancing the broader agenda of fostering a cashless economy in Pakistan, which in turn, supports economic growth and development through innovative financial solutions.

Jawad Mirza, CEO of PostEx Logistics, highlighted the transformative potential of this initiative in overcoming the challenges posed by cash transactions. He noted that with PostEx’s significant market share, the project is well-positioned to educate and enable a large number of consumers for digital payments.

Sharjeel Murtaza, Director of Digital Financial Services at Karandaaz, further explained that the pilot targets the lack of trust in online payments, which often stems from fears of non-delivery and disputes. By enabling secure digital payments at the doorstep, Karandaaz and PostEx aim to build a robust digital payment ecosystem that enhances consumer trust and supports the growth of e-commerce businesses in Pakistan.