COD Fundamentals
Why is COD so popular in Egypt and the GCC?
Direct answer
COD dominates in Egypt and the GCC because many shoppers do not fully trust online payment, want to inspect the product before paying, or simply prefer cash. Card penetration is uneven, refund processes feel slow and uncertain, and cash at the door removes all of that friction for the buyer.
The main drivers
- Trust. Paying after seeing the parcel protects the buyer from scams, wrong items, and stores that never ship.
- Refund anxiety. Getting money back onto a card can take days or weeks. With COD, there is nothing to claw back.
- Cash habits. A large share of daily spending in Egypt still happens in cash, and online shopping follows the same habit.
- Card friction. Failed payments, OTP problems, and cards that block online transactions push shoppers toward the cash option.
What this means for merchants
You cannot simply turn COD off without losing a large share of your sales. The practical play is to keep COD but manage its risk: confirm orders before shipping, message customers on the channels they actually read (WhatsApp first), and make prepayment gradually more attractive with small incentives rather than forcing it.
Treat COD as a feature your market demands, and build the operation around it.
Last updated 2026-07-09