Cash on delivery still rules in the Philippines: plan for it

If you sell online in the Philippines, you already know the feeling: an order comes in as cash on delivery, the rider goes out, and sometimes the buyer is not home or changes their mind. A new report suggests COD is not going away soon, but paying ahead is growing fast.

What the report found

Payments company Xendit released its E-commerce Payments Momentum Report on 15 October. The Philippine Star says it was prepared with market research firm Cube. It combines Xendit's own transaction data with a survey of 6,000 online shoppers in six Southeast Asian markets, including 1,000 Filipinos. As reported by GMA News, the Philippine Star and the Daily Tribune:

• COD made up about 23% of e-commerce transaction value on Xendit's Philippine platform, the highest share of the six markets. GMA reports Vietnam was next, at about 16% (GMA News, 15 Oct 2026).
• QR and bank transfer payments rose 198% between January 2025 and April 2026, driven mainly by QR Ph and InstaPay. Together, QR Ph and InstaPay made up about 13% of e-commerce value on the platform.
• E-wallet payments grew only 3% in the same period, partly because wallets already hold a large share of online payments (Philippine Star, 18 Oct 2026).
• Of the Filipino shoppers surveyed, 33% said they used COD much less than a year earlier, while 12% said nothing would make them give it up. That second figure is roughly twice the rate in most neighbouring markets.
• 41% of Filipino shoppers who abandoned an online purchase in the previous three months said the main reason was that their preferred way to pay was missing (Daily Tribune, 20 Oct 2026).
• Xendit expects COD in the Philippines to stay above 20% of e-commerce value in 2027, one of the few markets where it will.

A fair caution: these are figures from one payment company's own platform plus its survey. They are not a count of all online sales in the country.

Why COD hangs on

The Star says Xendit links the slow shift to a large cash-reliant population, limited access to banking, and worries about the security of paying online. Put simply, many buyers do not trust a seller they have never met with their money up front. COD is how they protect themselves.

That tells you something useful. COD is often a trust problem, not a payment problem.

Our take for small sellers

Do not remove COD to force people to pay ahead. You will lose the buyers who will never switch, and the 41% figure shows how often a missing payment option loses a sale. Instead, make paying ahead the easier and more attractive choice, and make COD orders less risky for you.

The report gives a clue about what works. According to the Star, discounts and cashback were the strongest reasons shoppers gave for switching to digital payment, and Xendit said reliable refunds and better security are needed to keep them there.

What to do this week

1. Offer QR Ph and keep COD. If you only accept one e-wallet, add a QR Ph code, which works across many banks and wallets. Keep COD as an option.

2. Give a small reason to pay ahead. Free shipping, a small discount or a freebie for prepaid orders. Keep it simple and honest, and show the final price clearly.

3. Confirm COD orders before they ship. A quick text or chat message asking the buyer to confirm the order, address and time cuts wasted trips. Keep a list of buyers who refused deliveries before.

4. Show your refund policy where people decide. A short, clear returns and refund policy on your product pages answers the buyer's real worry: "What if it goes wrong?"

5. Look like a real business. Buyers who trust you are more likely to pay ahead. Real reviews, clear contact details and a proper website all help.

6. Track it. For the next month, note how many orders were COD, how many were prepaid, and how many COD deliveries failed. Small numbers are fine. You will see which change made a difference.

The short version

Cash on delivery is still a big part of online selling in the Philippines, and it will be for a while. Treat COD as a sign that buyers need more trust, give them good reasons to pay ahead, and confirm COD orders so riders do not make wasted trips.

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