Cash on delivery (COD)
Letting customers pay in cash at handover, which means the platform's share sits in drivers' or providers' pockets until it is settled.
Updated October 2026 · with examples from our own builds
What does cash on delivery mean in practice?
Cash is still common for deliveries and local services in India. The driver or provider collects it, and part of it belongs to the platform as commission or fare. Until that share is paid back, the provider owes the platform money.
That makes COD a credit risk. Without limits, a provider can build up a large debt to the platform and stop working. The usual controls are a cap on how much platform cash someone may hold, a quick way to settle up, and taking them off new work when they reach the cap.
Cash also has to be recorded at the moment it changes hands, so the ledger knows who holds what.
Cash on delivery at a glance
- Risk
- Providers holding platform money
- Controls
- A cash cap, settle-up, and no new work at the cap
- Record
- Each cash collection in the ledger
Where has cash on delivery come up in our builds?
Commission drivers have a cap on the cash they may hold, and Settle up lets them pay Pakka's share back through Razorpay.
The cash cap exists only per Market and in its own currency: ₹10,000 for India and a €150 seed value for Portugal. A provider over the cap drops out of search until a settle-up is recorded, and a Market with no cap shows 'No cash cap' rather than a false 'Cash cap reached'.
The driver app raises an alert for cash-on-delivery orders.
Common questions about cash on delivery
How do I stop drivers keeping cash they owe the platform?
Set a cap on how much platform cash a driver may hold, give them a quick way to pay it back, and stop offering new work once they reach it.
Should the cash cap be the same in every country?
Not necessarily. EverybodysPet keeps the cap per country Market, in that Market's currency, so each country can set its own.
Related terms
Planning a product and not sure where cash on delivery fits? Ask us, or browse all 116 terms in the glossary.