THAILAND Post has begun offering a cash on delivery (COD) service to serve the needs of small and medium-sized enterprises (SMEs) and other entrepreneurs.
The company expects to record 250,000 transactions in the first quarter of this year.
Thailand Post president Samorn Terdthampiboon said that the firm is working with Siam Commercial Bank (SCB) and 2C2P to provide the COD service, which is based around a smart payment system for EMS customers.
The service allows customers who buy products from SMEs, other businesses and entrepreneurs to make payments via cash on delivery and online channels. Customers can pay the required charges for the products via the postman, who, upon delivering a product, can accept payment in cash and mobile banking transfers, such as through the wallet@post and SCB applications. Payments can be made through these channels for products with a value of less than Bt49,000 per transaction.
For the sellers who have products sent to their destinations, they will receive the proceeds from a money transfer within two days. Until February 28, money transfers for sellers are being provided for free under a promotion. Sellers will pay a fee of 3 per cent per transaction after the promotion ends.
“I believe that the COD will be part of a drive to increase e-commerce sales in the country,” Samorn said. “It creates convenience for sellers and online entrepreneurs who can conduct their business and arrange for money transactions more easily.”
Thailand Post has gained a market share of around 50 per cent. The firm last year booked revenue of about Bt29 billion, though it expects growth will be flat this year.