GoKwik, India’s leading eCommerce enabler, has reported a significant shift in consumer behavior during this Diwali season, with credit-based payments nearly doubling and a notable dip in cash on delivery (COD) orders. According to the data released by GoKwik, credit payment options, including credit cards and Buy Now, Pay Later (BNPL), have gained considerable traction on its network of D2C brands, reflecting a surge in consumer confidence and economic growth.
The share of credit-based payments surged from 3.49% last year to 6.9% this Diwali season, indicating a strong shift toward more flexible and affordable payment options among Indian shoppers. This increase in credit transactions reflects a healthier economic sentiment and increased consumer spending during the festive period.
In contrast, the preference for COD, a traditionally popular payment method in India, saw a decline. While COD remains the dominant payment method at 46% of total orders, it experienced an 8% dip during the festive season. This drop highlights a shift in consumer trust and comfort with prepaid payment methods. Meanwhile, prepaid payment methods, including UPI, surged by 13%, further showcasing the shift toward more seamless and convenient payment options.
“Affordability has always been a key driver for eCommerce growth in India, with shoppers opting for more flexible payment choices. We’ve been focused on building an ecosystem that supports this innate need among Indian shoppers. By offering multiple prepaid options on our checkout, we have not only provided more affordable payment choices to shoppers, but also provided greater control to merchants over their growth. Having a higher prepaid share of orders helps brands mitigate the impact of return to origin (RTO) and enables profitable growth for them. Our efforts in this direction have started to show the much needed shift in consumer preference,” said Chirag Taneja, Co-Founder and CEO of GoKwik.
COD remains a popular choice in Tier 2 and Tier 3 regions, where it continues to build trust among consumers wary of online payments. However, it also presents challenges for eCommerce businesses, such as delays in cash flow, higher return rates, and increased logistical costs. Despite these challenges, GoKwik has focused on reducing COD orders for its partner brands, leading to a healthier overall payment ecosystem.
Categories like footwear and fashion witnessed the highest uptake of credit-based prepaid payments, while categories such as beauty and personal care still preferred COD. A notable trend during this Diwali period was the increasing preference for credit payments in Tier 3 cities, a shift from the traditional reliance on COD.
Rohit Prasad, MD & CEO of Easebuzz, a key partner in supporting GoKwik’s platform, commented, “We are happy to support GoKwik during this festive sale period. With an exceptional 99.9% uptime, Easebuzz platform empowered D2C brands manage millions of transactions without any downtimes, a crucial advantage during peak shopping periods. Our extensive payment acceptance methods, affordability suite with BNPL & EMI options, coupons and rewards during checkout helped these brands deliver a superior shopping experience for their customers.”
The surge in credit-based payments was particularly noticeable in high-ticket categories such as electronics and jewelry. For instance, credit card payments for electronics increased by 36%, while BNPL options saw a 27% rise. The overall Average Order Value (AOV) during this period rose by 3%, with fashion and jewelry categories seeing strong growth at 15% and 13%, respectively.
GoKwik’s platform houses over 10,000 brands, including Lenskart, Neemans, Man Matters, and Shoppers Stop, across various sectors such as fashion, beauty, health, nutrition, and electronics. The platform serves a vast network of over 120 million shoppers, making it a leading enabler for D2C brands seeking to maximize their growth potential and streamline their eCommerce operations.
Founded in 2020, GoKwik has quickly established itself as a leader in eCommerce enablement, focusing on reducing friction in the eCommerce funnel, optimizing COD interventions, reducing return to origin (RTO), and maximizing customer engagement. With its deep network data and focus on improving the shopping experience for both brands and customers, GoKwik continues to drive eCommerce growth across India.
