India has a parallel black economy which is pretty strong. Cashless Ecosystem will be a hindrance to use such stored cash. Cash On Delivery models shall be opted more in smaller cities. If you have worked in a smaller city, you know people are very price sensitive & we cant assume that they are ready to pay online. With all the hoopla about e-commerce one needs to understand that tier 2 & tier 3 cities is a different ball game altogether.
Moreover, one needs to make sure that e-commerce companies start delivering to smaller cities in COD mode to make use of the opportunity.
Many a times, people, from tier 2 cities, place an order on e-commerce websites choosing the COD mode but products never reach them. We need to have strong logistical solutions too to facilitate the e-commerce.
Example- Many e-commerce giants do not deliver in Greater Noida, Agra & Meerut region due to known reasons.