For years, global eCommerce narratives predicted the rapid disappearance of Cash on Delivery (COD). Digital wallets, instant transfers, and cards were supposed to take over entirely. In emerging markets particularly across Latin America that assumption has proven wrong.
COD is not a legacy payment method. When executed correctly, it remains one of the most effective growth drivers for eCommerce in emerging markets, directly impacting conversion rates, market penetration, and customer trust.
This is not about resisting digital transformation. It is about understanding how real consumers behave.
The trust gap digital payments haven’t closed
In many emerging markets, the primary barrier to online purchases is not access to technology, it is trust.
Consumers hesitate to pay upfront because of:
- Low confidence in delivery reliability.
- Fear of fraud or non-delivery.
- Limited experience with cross-border eCommerce.
- Partial or inconsistent banking access.
COD solves this friction instantly. Customers pay only when the product is in their hands. As a result, businesses consistently see:
- Higher checkout completion rates.
- Broader reach into underbanked segments.
- Faster adoption in new markets.
Ignoring this reality often means optimizing for a minority of customers while excluding the majority.
COD is not a payment method it’s an operational system
One of the biggest misconceptions is treating COD as a simple payment option. It is not.
COD is an operational model that connects:
- Last-mile delivery.
- Cash collection.
- Reconciliation and settlements.
- Customer experience.
This is where many companies fail. Without proper infrastructure, COD introduces risks:
- High return and rejection rates.
- Cash handling issues.
- Delayed settlements.
- Margin erosion.
The problem is not COD itself. The problem is operating COD without local expertise.
When COD becomes a competitive advantage
Companies that succeed with COD do not ask, “Should we offer it?”
They ask, “Can we operate it profitably?”
COD becomes a competitive advantage when:
- Delivery success rates are controlled.
- Cash collection is traceable and auditable.
- Settlement cycles are predictable.
- The logistics partner understands local behavior.
In these conditions, COD does not increase risk it increases conversion and revenue predictability, especially in early-stage market entry.
Why emerging markets require local execution
Emerging markets are not standardized environments. Even within Latin America:
- Consumer behavior varies by country and city.
- Acceptance of COD differs significantly.
- Delivery infrastructure quality is uneven.
- Last-mile challenges are highly localized.
Global logistics models often fail because they prioritize scale over adaptation. Successful companies operate locally while thinking regionally.
This is why COD remains dominant in many emerging markets: it aligns with how consumers buy, not how platforms wish they would buy.
How Kiki Latam enables COD at scale
Kiki Latam provides companies with the operational backbone needed to run COD profitably across Latin America.
Through its services, businesses gain access to:
- Local last-mile logistics in multiple LATAM countries.
- Professional cash collection with full traceability.
- Clear and reliable settlement processes.
- Reduced delivery failures through local market expertise.
- A single operational framework adaptable by country.
This allows companies to deploy COD without building fragmented, country-by-country operations.
👉 Learn more about how this operational model works here.
With the right infrastructure, COD shifts from being a risk factor to a growth lever.
COD as a market-entry accelerator
For companies entering emerging markets, COD often determines how fast they gain traction.
Offering COD:
- Reduces friction for first-time buyers.
- Builds trust before brand recognition exists.
- Enables demand testing with lower resistance.
- Improves early conversion metrics.
Without it, many brands experience slower adoption and misinterpret low conversion as lack of demand when in reality, it is lack of payment flexibility.
Planning for growth beyond 2025
As companies plan for growth in 2026 and beyond, payment strategy must be treated as a core operational decision not a secondary feature.
Emerging markets reward companies that:
- Adapt to local purchasing behavior.
- Invest early in logistics and payments infrastructure.
- Choose partners who operate, not just ship.
COD will continue to play a central role in these markets not because digital payments are failing, but because consumer trust evolves slower than technology.
If your company is expanding into emerging markets or struggling with conversion in Latin America, COD should be part of the strategic conversation.
👉 Speak with a Kiki Latam expert to evaluate whether Cash on Delivery fits your growth model and how to implement it profitably.