DELIVERY Hero Philippines Inc. (formerly Foodpanda Philippines Inc.) announced it would accept payment in cash three years after a lockdown made digital payment ubiquitous.
“Cash is still king” when it comes to preferred payment method for online shopping, a statement issued last Wednesday by Delivery Hero PHL read.
According to the operator of the Foodpanda online food delivery platform, its customer base is now split between cashless and cash-on-delivery (COD) payments.
Prior to the pandemic, CEO Daniel Marogy said the preference was “heavily skewed” towards COD at an 80/20 ratio. However, Marogy added that “there’s been a significant and rapid shift in consumer payment behavior in [a] relatively short time.”
To back this claim, Delivery Hero cited actual results from a survey done by its Berlin-based parent company.
According to the survey on Filipinos’ payment method preferences, 51 percent of consumers prefer paying with cash while the other half prefers various digital payment methods. The latter set has 27 percent using a mobile wallet app, 17 percent using a debit or credit card and the remaining 4 percent using other digital payment methods.
According to Delivery Hero PHL, the “underlying” reasons for those who continue to use COD “is their habit, the ability to control spending and a sense of security.”
In contrast, the firm said those who opt for online payment methods “primarily” cite convenience as the top reason for using this payment method.
With the shift in the consumer payment behavior, Delivery Hero PHL noted that the future of the payment landscape “envisions cash and digital payments seamlessly complementing each other.”
Marogy said the firm’s goal is “not to replace traditional methods with digital alternatives, but rather to give customers the option to freely select their preferred mode of payment.”
“Cash and digital payments will coexist for some time to come. The economy is still predominantly cash so that will reflect in our customers’ payment choices on the platform. By offering both options for our app users, we provide flexibility to cater to diverse customer needs,” he added.
As digital payment now battles with COD in terms of preferred payment method, Marogy cited the firm is committed to ensure that “secure and convenient” payment avenues remain.
“Our core mission is to make every transaction secure and simple, whether a customer chooses cash or digital payments for their food and grocery needs,” he said.
Delivery Hero PHL currently operates in 150 cities and municipalities across the country.