Snapdeal partners Yes Bank and Blue Dart to transfer COD proceeds faster

BANGALORE, INDIA: Snapdeal has expanded partnerships with Yes Bank and logistics company, Blue Dart to enhance the “Cash on Delivery” (COD) model.

The COD model accounts for close to 60% of all e-commerce transactions and the COD transaction value is expected to reach about INR 54,000 Crore size by 2016. But given that the Internet Banking penetration is only about 5%, Yes Bank realizes the significance of enabling an efficient COD model to enable e-commerce reach the consumers Tier-2 and Tier-3 cities in India and provide impetus to the e-commerce marketplace and its sellers.

This unique integration through the transaction banking product suite, Yes TRANSACT will enable Snapdeal to receive COD proceeds from Blue Dart in a faster, streamlined fashion and also help with faster payments to suppliers. The process includes both the involvement of Yes Bank as a collection banker to Blue Dart for its cash handling and also a technical integration through which data is processed electronically and payments are released to the market place basis the same.

Amit Choudhary, Senior Vice President - Corporate Finance, Snapdeal said, “The dominant mode of payment for a large portion of online customers continues to be cash on delivery, this in effect adds time to the payment cycles for sellers. With this partnership we are confident that we can improve payments cycles and help our sellers become more successful.”

In the first phase, Yes Bank will make this same day processing facility available at 23 Blue Dart locations across Metros and Tier-1 cities. This will be expanded pan-India covering Tier-2 and Tier-3 towns and cities across India within the next 6 months.

Snapdeal had earlier implemented Yes Bank's API Banking services to process Customer Refunds within an hour’s time.