You open your online store in Pakistan and the first big question is not design or products. It is payment. Should you take cash on delivery like everyone else, or set up JazzCash, Easypaisa, cards and bank transfers from day one? Every seller WhatsApp group has a strong opinion, and most of them contradict each other.
I build e-commerce and software products at 12Monday, including 12Commerce, our store builder for Pakistani sellers, and I have written apps that handle payments for years. So I see this question from the developer side and the seller side at the same time.
In this post I compare cash on delivery with the main online options in Pakistan, explain what each one actually needs from you, and share how we handle it in 12Commerce today.
The short answer
Start with cash on delivery, because that is how most Pakistani customers are comfortable buying from a store they have never heard of. Add online payments when you have the volume and the paperwork for them, and offer them as an option next to COD, not as a replacement. The best setup for most small stores is "COD plus one or two online methods your customers already use".
Cash on delivery: why it still wins at the start
COD removes the customer's biggest fear: paying for something that never arrives. For a new store with no reviews, that trust matters more than anything on your product page.
What it costs you
- Waiting for your money. You get paid only after the courier delivers and settles with you, not when the order is placed.
- Refused parcels. When a customer refuses the parcel, you usually pay shipping both ways and get nothing.
- Less certainty. An order on your dashboard is a promise, not a payment.
None of this means COD is bad. It means you have to price for it and confirm orders properly, for example with a quick call or WhatsApp message before dispatch.
The online options in Pakistan
JazzCash
JazzCash has an official online payment gateway for websites and apps. According to JazzCash, customers can pay through a JazzCash mobile account, Visa or Mastercard credit and debit cards, or vouchers, and the merchant can switch on any of these. It supports page redirection, APIs, hosted checkout and plugins for platforms like WooCommerce, Shopify and Magento. There is a free sandbox to test before going live. Onboarding includes a document review, biometric verification and an agreement signed in your business name.
Easypaisa
Easypaisa's online payment gateway lets customers pay from their Easypaisa mobile account, or get a token and pay cash at an Easypaisa shop. Its newer online payments solution also lists debit and credit cards. Easypaisa says any business with a live website or mobile app can apply, and the process includes an online application, KYC checks, testing on a sandbox and then going live. There are plugins for WooCommerce, OpenCart, Magento and PrestaShop.
Cards
In Pakistan you normally do not connect to Visa or Mastercard yourself. You accept cards through a gateway, such as the JazzCash or Easypaisa options above or a bank's own gateway. That gateway handles the secure card page, so your store never stores card numbers.
Bank transfer and Raast
The simplest online method is asking the customer to send money to your bank account. The modern version of this is Raast, the State Bank of Pakistan's instant payment system. Money moves in real time using an IBAN or a Raast ID, which can be a mobile number. SBP directed banks not to charge customers for Raast transfers, and Raast also has a person-to-merchant service with QR codes and request-to-pay, which you get through your bank.
The catch with manual transfers is checking. Always confirm the money in your own bank app before you ship. A screenshot is not a payment.
COD vs online payments side by side
Here is how the options compare for a small store. I have left out fee percentages on purpose, because gateway rates depend on your agreement, so ask each provider for its current pricing.
| Cash on delivery | JazzCash / Easypaisa | Cards (via gateway) | Bank transfer / Raast | |
|---|---|---|---|---|
| How the customer pays | Cash to the rider at the door | From their mobile account, or (on some gateways) cash at a shop with a voucher or token | Visa or Mastercard debit/credit card at checkout | From their bank app to your IBAN, or a Raast ID / QR |
| When you know you are paid | Only after delivery and courier settlement | At checkout, through the gateway | At checkout, through the gateway | When you see it in your account; manual check unless integrated |
| Setup for the seller | A courier account | Merchant onboarding with documents and KYC, then integration | Comes with a gateway that supports cards, such as JazzCash or Easypaisa | A business bank account; Raast QR or request-to-pay through your bank |
| Customer trust | Highest for a new, unknown store | Good with people who already use the wallet | Good with card users, smaller group | Depends on trusting you before receiving anything |
| Main risk | Refused parcels and cash stuck with the courier | Integration work and gateway fees | Integration work and gateway fees | Fake screenshots if you do not verify in your bank app |
How I would choose as a new seller
- Launch with COD. Get your first orders and learn what sells.
- Add a bank transfer or Raast option for regular customers. It needs almost no integration, just discipline in checking payments.
- Apply for a wallet or card gateway once orders are steady. The onboarding takes time and paperwork, so start it before you desperately need it.
- Keep COD on. Removing it too early can cost you more orders than the online payments bring in.
- Nudge, do not force. If you want more prepaid orders, make online payment the easy and visible choice, and keep COD available.
How we handle it in 12Commerce
I will be honest about where we are. Currently 12Commerce stores run on cash on delivery. If a client already has other methods, such as their own gateway account, we can integrate those too. That matches the path above: COD to start, and online methods when the seller is ready for them.
We have also written a product-focused guide on the 12Commerce blog: COD, JazzCash and Easypaisa payments with 12Commerce.
Common mistakes
Turning off COD to "stop fake orders"
It can also stop the real orders from people who do not trust you yet. Confirming orders before dispatch is usually a better first step.
Shipping on a screenshot
For transfers, check your bank or wallet app every time. It takes a minute and saves you a lost parcel.
Integrating everything at once
Each gateway means onboarding, testing and reconciliation. Start with the one method your customers ask for most.
Wrapping up
Cash on delivery is still the safest way to win the first order in Pakistan, and online payments are how you get paid faster once customers trust you. JazzCash, Easypaisa, cards and Raast all work well as options next to COD, not instead of it. Start simple, verify every payment and add methods as you grow.
If you are setting up payments for your store and are not sure which method to add first, send me a message and I will happily talk it through.
You can find me at bilalattari.com, email me at attari1235@gmail.com, or message me on LinkedIn.
Sources
- State Bank of Pakistan: Raast, Pakistan's instant payment system
- State Bank of Pakistan: Raast Person-to-Person payment service circular
- State Bank of Pakistan: Raast Person-to-Merchant payment acceptance
- JazzCash: Online payment
- JazzCash: Sandbox documentation
- Easypaisa: Online payment gateway
- Easypaisa: Online payments solution
