YES BANK partners BLUE DART and SNAPDEAL to revolutionise Cash on Delivery model

YES BANK, India’s 5th largest private sector Bank has partnered with BLUE DART, South Asia’s premier express air and integrated transportation, distribution and logistics company and Snapdeal, India’s largest online market place to enhance the “Cash on Delivery” (COD) model by making strategic interventions in the Financial Supply Chains of these companies.  This partnership is under YES TRANSACT – YES BANK’s award winning transaction banking product suite and reinforces the Bank’s philosophy of providing insightful Knowledge Banking solutions to the sunrise sectors of India’s economy.

This unique integration through a proprietary system will enable Snapdeal to receive COD proceeds from BLUE DART in a faster, streamlined fashion and also help with faster payments to suppliers. The system is expected to greatly enhance the Financial Supply Chain of the company and eventually allow Snapdeal to pass on the benefits to the customers. The Cash On Delivery 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. Given that 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. YES BANK is also working on enabling electronic and digital payment solutions for consumers.

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. In the first phase YES BANK will make this same day processing facility available at 23 BLUE DART locations across Metros and Tier-I cities. This will be expanded Pan-India covering Tier-2 and Tier-3 towns and cities across all major States in India within the next 6 months and account for close to 50% of BLUE DART’s COD handling.

Asit Oberoi, Group President & Chief Operating Officer, YES BANK said, “We are proud to partner with BLUE DART and Snapdeal who are leading the ongoing revolution in India’s e-commerce space for this pioneering solution. The Cash on Delivery model is very important in the Indian e-commerce industry, and we are certain that our YES TRANSACT solution will bring in enhanced efficiencies offering significant value to the companies in managing their Supply Chain.”

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”.

Yogesh Dhingra, Chief Financial Officer and Chief Operating Officer, BLUE DART Express Ltd. said, “BLUE DART has been a leader in the logistics industry in India and has innovated several best practices then replicated by others in this space. We have been committed to delivering the best to our customers and this partnership with YES BANK and Snapdeal will only re-affirm our commitment to ensuring customer delight, convenience and reliability in every transaction”.

YES BANK had earlier partnered with Snapdeal to implement industry’s first API Banking services enabling Snapdeal to process Customer Refunds within an hour’s time.