How Payment Links Can Help Convert Cash-On-Delivery Payments into Digital Payments

29 March, 2024

Despite us progressing towards a completely digital era, cash payments continue to remain popular. However, there’s a limit on the amount cash that can be transacted. For businesses, digital transactions, be it large or small, make managing the overall finances easy. If your customers are still using cash payments, here’s how you can convert your cash-on-delivery (COD) customers into digital payers with payment links.

Payment links for digital payments

A payment link is a URL or QR code that you can share with your customers via messaging or social media platforms. Customers can use this link to make payments using their preferred payment modes. Payment links are useful when you don’t have a website, or your website is not integrated with payment collection tools. Payment links are also effective when it comes to social media marketing or SMS marketing. If you offer doorstep delivery and your customers are paying in cash, you can encourage them to pay using payment links. 

How do payment links work?

The payment link is linked to your business bank account. You can create a payment link using the banking app and share it with your customers. When customers open the link, they will be redirected to a stand-alone webpage. Customers can select their choice of payment and complete the transaction. Once the payment has been made, you will receive a notification. 

How payment links can help convert COD customers into digital players

Cash on delivery may be convenient for customers, but it poses a substantial risk for businesses. When a product is delivered, the customer may decide not to keep the item. The merchant must take back the product without the customer paying the product price. The merchant also has to bear the logistics costs to get back the product. As a business owner, you can reduce such risks by opting for payment links. Here’s an example of how you can use payment links if your customers have not used online payment options to buy your product:

Let’s say a customer purchases a product from your website and selects the payment mode as cash-on-delivery. When the product is out for delivery, you can send a payment link to the customer. The customer opens the link and selects the preferred payment mode (Debit Cards, Credit Cards, Unified Payment Interface, NetBanking). This way, the customer pays for the product before it is delivered. The customer can show the payment receipt to the delivery agent. 

You can also share a payment link in the form of QR code with the delivery agent. When the agent delivers the product, the customer can scan the QR code using a smartphone camera. Once the customer scans the code, they can select their preferred payment mode and pay for the product. 

How to create payment links?

To create a payment link, you typically need a business account with a bank. The payment collected from customers get credited in the business account. Then, you can log into the banking portal and navigate the payment link page. Here, you can enter the customer’s mobile number and the payment amount. After you confirm the request, the link will be shared with the customer via the preferred messaging tool.

Send payment links with HDFC Bank SmartHub Vyapar

HDFC Bank’s SmartHub Vyapar is a one-stop solution for your business’s payment needs. You can convert your COD customers into digital payers with the SMS Pay feature. With this feature, you can send payment links to your customers via text message. You can also accept payments via bank cards, UPI, QR code and Tap N Pay. Existing HDFC Bank Current Account holders can enjoy instant onboarding on SmartHub Vyapar.

Download the HDFC Bank SmartHub Vyapar app to track all your payments instantly.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.