Is cash on delivery still common in India?

Yes. Logistics platform ClickPost found that only 41% of e-commerce orders were prepaid in 2025, and just 34.5% in Tier III markets. Many couriers now accept UPI at the door.

How people pay in India in 2026

Online, merchants also offer net banking, wallets and cash on delivery, which remains common outside large cities. NPCI planned a 0.4% merchant fee, capped at Rs 300, on UPI payments above Rs 2,000 from October 15, 2026, but deferred it until after Diwali; by late October 2026, NPCI had not yet announced the new date. For PSPs and merchants, India is a UPI-first market with a long card and cash tail.

Payment by cash in India

Cash is still used every day for small purchases and in rural India, even though UPI QR codes are now everywhere. In e-commerce, cash on delivery remains a large share of orders. Logistics platform ClickPost found that prepaid orders rose to 41% in 2025 from 32% a year earlier, across 635 million orders it tracked. Prepaid reached 46% in metro areas but only 34.5% in Tier III markets, so most orders outside the big cities are still paid at the door.

More detail in our #PayWorldTour guide Payment methods in India.