Cash-on-Delivery vs Wallet: What Works Best for Zimbabwe’s e-commerce space?

In Zimbabwe’s fast-growing e-commerce space, payment remains a tricky business. Many small businesses have made progress in reaching customers online — but when it comes time to get paid, there’s still a big question: Do you trust the customer to pay before delivery, or after?

At Yaita, we’ve walked this road before. In our earlier phase, we helped merchants deliver thousands of orders across Harare and Bulawayo using a mostly cash-on-delivery (COD) model. We’ve seen the good, the bad, and the risky side and in this post, we’re sharing what we’ve learned, and how merchants today can better manage their COD operations, while starting to shift toward safer, smarter wallet-based systems.

Why COD Still Reigns in Zimbabwe

Let’s face it — most Zimbabwean online shoppers still prefer to pay after they receive the product. And it’s not because they’re unreliable — it’s about trust and context.

• Trust Deficit: Customers want to see the item first, especially with products like clothes or electronics. They want to confirm that it’s what they ordered before parting with their money.
• Cash Economy: Despite the rise of mobile money and digital platforms, cash is still king in Zimbabwe due to mistrust in the financial system plagued by shifting currency and recurring cycles of hyper-inflation.
• High fees: Hight transaction fees and a 2% tax on digital payments pushes consumers to stay locked on cash payments.

So even with the rise of e-commerce platforms, COD remains the most widely accepted form of payment for deliveries. But it here comes baggage.

The Risks of COD (And What We Experienced)

When Yaita first launched in 2019, we handled all merchant deliveries using COD. Drivers collected cash from customers and later remitted it to Yaita, which then paid out to merchants. Simple in theory. In reality? Not so much.

Here’s what we saw first-hand:

• High failure rate: Up to 20% of deliveries were turned away at the door — often because customers weren’t ready, didn’t have the money, or simply changed their minds.
• Cash leakage: With drivers handling cash, incidents of misplaced funds or non-remittance emerged. Tracking was manual and reconciliation was painful.
• Delayed settlements: Merchants often had to wait 1–2 days to get their money — slowing restocks and creating friction in operations.

We knew something had to change.

Wallet Payments: A Smarter Way to Handle Money

As we rebuild Yaita, we’ve introduced a wallet system that helps merchants and drivers manage payments better.

Here’s how it works:

• Drivers pre-load funds into their wallet.
• Drivers complete deliveries and confirm cash collections.
• The collected cash is offset against the driver’s wallet in and settled into the merchant’s wallet in real-time — eliminating the need for physical handovers.

It’s a win-win: drivers don’t carry around piles of cash or cycle back to the merchant’s location to remit funds, and merchants don’t wait days to confirm what’s owed.

Tips to Make COD Work (Safely)

If you’re a merchant still relying on COD — don’t worry, you’re not alone. But you can reduce the risks. Here are practical tips based on our field experience:

1. Work with trusted drivers
   Use dedicated or verified delivery partners who understand your products and process.
2. Pre-confirm every order
   Before dispatch, confirm via WhatsApp or SMS that the customer is ready and expects the order.
3. Offer time windows
   Let customers choose delivery slots. This reduces missed deliveries and improves conversion.
4. Use verification codes
   Yaita generates one-time delivery codes . Use these to confirm receipt and payment in real time.
5. Hybrid payments
   Some merchants succeed by requesting a small prepayment (e.g., $3) via mobile money to confirm intent — then collect the rest via COD.
6. Track every transaction digitally
   Whether you use spreadsheets or a platform like Yaita, always know where your money is at every point in the fulfillment cycle.

So… COD or Wallet?

Our view? It’s not about choosing one over the other — it’s about managing the transition.

• If you’re just starting out, COD builds trust and makes it easier to convert new buyers.
• As you grow, wallets offer better control, faster reconciliation, and lower risk.
• The future? Smart hybrid models that let customers choose their preference — while you stay protected.

Final Thought: It’s About Control

The beauty of running your business with a platform like Yaita is that you get more control — not just over deliveries, but over how money flows between you, your customers, and your drivers.

Cash may still dominate, but with the right systems and safeguards, you don’t have to be at its mercy. You can collect smarter, get settled faster, and grow with confidence.