While digital wallets and online banking continue to gain traction across Southeast Asia, cash remains an essential payment method for millions of shoppers. ParcelDaily is betting that reality still presents a significant growth opportunity for merchants.
The Malaysian courier aggregation platform has expanded its Cash-on-Delivery (COD) services, aiming to help micro, small and medium enterprises (MSMEs) reach consumers who either prefer cash payments or lack access to digital financial services. The company says it has now processed and remitted more than RM250 million in COD payments to local merchants, highlighting the continued relevance of offline payment options in an increasingly digital economy.
The expansion comes as social commerce, regional e-commerce growth and financial inclusion remain key priorities across Malaysia, where payment preferences vary considerably by location and consumer demographics.
Cash Remains King in Parts of Malaysia
Despite the rapid adoption of digital payment platforms, ParcelDaily’s internal data suggests cash continues to play an important role in online shopping behaviour, particularly outside major urban centres.
According to the company, nearly one in three completed e-commerce orders in Sabah are paid using Cash-on-Delivery, compared with roughly one in eight orders in Kuala Lumpur.
The disparity reflects more than consumer preference alone. Differences in banking access, digital payment adoption and buyer confidence continue to influence purchasing behaviour across the country.
Government data supports that picture. The Malaysian Communications and Multimedia Commission reported fixed broadband penetration of 25.7% in Sabah during the first quarter of 2025, significantly below the 46.2% recorded in the Federal Territories and 41.6% in Penang.
For many consumers, particularly first-time online buyers or those purchasing from unfamiliar sellers, paying only after receiving a parcel remains a trusted alternative to upfront digital payments.
Removing Logistics Complexity for Small Businesses
Beyond payment collection, ParcelDaily is positioning its platform as an all-in-one logistics management solution for growing businesses.
Instead of managing separate accounts with multiple delivery providers, merchants can access major courier networks—including J&T Express, Ninja Van, DHL eCommerce, Flash Express, Best Express, Pos Laju and Teleport—through a single dashboard.
The latest COD offering includes several features designed to improve operational efficiency:
- 24-hour COD remittance, allowing merchants to receive collected payments quickly and improve cash flow.
- A unified management dashboard for real-time shipment tracking, payment reconciliation and financial reporting.
- Workflow automation, including bulk order uploads, proof-of-delivery access, API integrations and native Shopify compatibility.
- No long-term contracts, supported by centralised customer service for businesses using multiple courier partners.
For smaller retailers with limited operational resources, consolidating logistics and payment management into a single platform can significantly reduce administrative overhead.
Social Commerce Is Driving New Demand
The expansion also reflects the rapid growth of Malaysia’s social commerce ecosystem.
Platforms such as TikTok Shop, Facebook Live and other livestream shopping channels have lowered the barriers to entry for entrepreneurs, enabling businesses to sell directly to consumers without investing in traditional retail infrastructure.
However, these channels often introduce buyers to previously unknown sellers, making trust an increasingly important factor in purchase decisions.
Cash-on-Delivery addresses that concern by allowing customers to inspect their purchase before making payment, reducing perceived risk while encouraging first-time transactions.
For merchants, the model broadens access to unbanked, underbanked and cash-preferring consumers who may otherwise abandon online purchases if digital payment is the only option.
Cross-Border Expansion Adds New Growth Opportunities
ParcelDaily is also extending its COD capabilities beyond Malaysia by supporting cross-border Cash-on-Delivery shipments to Singapore.
The feature allows Malaysian merchants to serve neighbouring markets without changing logistics providers or payment workflows, offering a simpler route to regional expansion.
As Southeast Asia’s digital commerce market continues to mature, platforms that combine payment flexibility, logistics integration and operational automation are becoming increasingly valuable for SMEs looking to scale.
While digital payments will continue to dominate future growth, ParcelDaily’s latest expansion underscores a practical reality: in many markets, offering customers a choice between cash and digital payment remains one of the most effective ways to maximise conversion rates and broaden market reach.
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