• Lazada Payment Methods: What Sellers Must Know

    Posted on 10 Comments


    Get help selling online in China & Southeast Asia here

    Lazada has managed to penetrate Southeast Asia’s promising E-Commerce market, and it wouldn’t be that easy without the payment solutions offered.

    Buyers have a number of payment options when purchasing products on Lazada and it’s important that you understand how each method work in detail.

    In this article, I explain the payment methods that are used in all ASEAN countries, what benefits these have, how you can connect with Lazada’s payment providers, and more.

    Option A: Cash On Delivery (COD)

    The option for buyers to use cash on delivery has opened up the Southeast Asian E-Commerce completely. Now, you have access to millions of new buyers that wouldn’t otherwise be able to take advantage of Lazada’s services.

    Why? Because countries like Indonesia and Philippines often lack local banking infrastructure and many people don’t even have bank accounts.

    Personally, I often use COD here in Vietnam as it feels more secure to pay for a package when I’m able holding it in my hands.

    Here are two reasons that will convince you to offer COD:

    • 55% of buyers in Southeast Asia use COD on Lazada
    • Stores offering COD see 1.5 – 3.5 times higher sales on average

    I know, it looks convincing.

    So, what happens if a customer rejects a package, or the delivery fails, and it’s sent all the way from Hong Kong? Don’t worry.

    Lazada will send your package to a local cross-border venture, ready to be dispatched to other buyers for up to 4 weeks. Lazada takes care of all the fulfillment and you don’t have to lift a finger, everything free of charge.

    If no other customer buys your product (which only happens in 35% of the cases) it will be sent back to your warehouse, completely for free.

    What are the restrictions for Lazada sellers to offer COD?

    Items need to be dispatched from Lazada’s sorting centre in Hong Kong or Mainland China.

    Also, you can only use Lazada’s Express delivery service (LEX) and Ninjavan, which is a local last-mile delivery company collaborating with Lazada.

    How can I activate COD as a payment option?

    COD is automatically activated for Philippines, Thailand, Indonesia, Malaysia, and Vietnam. In Singapore, it’s still under discussion whether it should be automatically activated.

    In case you want to deactivate COD, I recommend you to contact your Lazada account manager as their Opt-out form is currently not available.

    Are there any extra charges to use COD?

    No, there are no extra charges. Just keep in mind that Lazada pockets a commission of 1-4% per sale and a 2% payment fee.

    Option B: Credit Card / Local ATM Card

    Even if COD brings many benefits to buyers, pre-payment is still a preferred option and used by 45% of Lazada shoppers.

    Using a credit card or local ATM card is relieving as you won’t need to worry whether you have enough cash when your delivery arrives. It just feels good to know that the payment is already made.

    Worth mentioning is that not all sellers offer COD as a payment option as well.

    Lazada accepts all major credit cards supported by VISA and Mastercard. Your card information will be protected using Secure Sockets Layer (SSL).

    Option C: Lazada E-Wallet

    In 2018, Lazada launched its own E-Wallet which brings some similarities to the WeChat wallet used in China.

    So far, the E-Wallet is available in the Philippines, Singapore, Malaysia, and Thailand. The interface is very neat and allows shoppers to top up the wallet with an amount equaling to around USD 1,000.

    I was utterly surprised when I read that you can top up the wallet through not only credit cards, debit cards, and bank transfers, but also in 7-Eleven stores.

    In short words; you can simply bring cash to a 7-Eleven store (and other locally dedicated stores) and they’ll top up the wallet for you, similar to a SIM-card.

    And Lazada is doing its utmost to attract more buyers to use the wallet by offering rebates, discounts, and quick refunds.

    In Malaysia, you’ll get a 10% cash back with its Wallet Tuesdays if you pay at least RM 100 (ca USD 25) and a maximum discount of RM 20 (ca 5 USD).

    I’m pretty sure that we’ll see a vast usage of the Lazada E-Wallet, in addition to COD as described above, thanks to the following benefits:

    • It’s fast and convenient
    • It allows one-click payments
    • Instant cash back for returns (1-2 days)
    • No risk of missing out during flash sales

    Other country specific payment options

    Country specific payment solutions not covered above include:

    • Philippines: GCash, BDO Credit card instalments
    • Thailand: Counter service (pay at store): Tesco Lotus Counter Service, Big C Supercenter, Family Mart, mPay Station by AIS, Pay@Post by Thailand Post
    • Singapore: Paypal/AMEX, payment instalments
    • Malaysia: Online banking, payment instalments


    When do I receive my payment from Lazada?

    Sellers are paid 5 business days after the last date in your last account statement, which lasts for one week.

    For example, in case your latest account statement shows returns and deliveries from the 4th – 10th of March in 2018, you’ll get paid on March 15th in 2018.

    When will I get paid for COD orders?

    You’ll get paid in the same way as Lazada’s standard payout process, in the weekly payout cycle.

    What payment providers does Lazada use?

    Lazada uses Payoneer and World First as payment providers for cross-border sellers. You need to integrate with any of these payment providers in your Seller Center.

    How do I refund customers returning products?

    When it comes to reimbursements of customer returns, Lazada will charge the amount of accounts payable to sellers, for example, your Seller Center account which is connected to either Payoneer or World First.

    How do I connect my bank account to my Lazada seller account?

    • Log in to your Seller Center
    • Choose Payoneer or World First as a payment provider
    • Fill in the information
    • Pending for approval
    • Successfully connected
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  • 10 Responses to “Lazada Payment Methods: What Sellers Must Know

    1. Anonymous at 1:21 pm

      How do you connect your Gcash account on Lazada as a seller and not a buyer so that the money goes to your Gcash account. How do I even link it? Its asking for a Bank Name and Bank Brand which Gcash has none… it only has supporting banks. It doesnt own any bank

      1. Marcus Sohlberg at 7:04 am


        Have you raised this question to Lazada through Seller Center? I would advise you to do so first.

    2. Ryan G at 11:48 am

      Is there a one stop solution for local bank accounts for all 6 countries that a global seller covers? World first and payoneer doesn’t have them all. Or do we just use a payoneer/worldfirst account for all 6 countries? Thanks in advance.

      1. Marcus Sohlberg at 11:55 am

        Hi Ryan,

        I’m not sure if I understand this question fully. You use either Payoneer or World First, you choose one of them when signing up as a cross-border seller.

    3. Dibra at 1:36 pm

      I’m a lazada new seller . I don’t have any bank account now I had my first order but I’m afraid of continuing because I don’t have any idea how lazada will send the money to me since it is cash on delivery

      1. Marcus Sohlberg at 7:01 am

        You need to have a bank account for Lazada to transfer funds.

    4. stephanie co at 2:26 pm

      Hi im a new seller. I already delivered my orders last week and this week but my account statement is still 0. Is it because my buyers still didnt get their orders yet?

      1. joel goma at 11:10 am

        same experience here i already 1 item but i have no idea when will be the payment because my account still zero. any news about your status are already paid? thanks

    5. Philip Mason at 6:05 am

      When a buyer pays by credit card when does the seller receiver the funds? Is it after the goods are confirmed delivered?

      1. Marcus Sohlberg at 11:56 am

        Hi Philip, you can read the FAQ for more info. If you need additional information, I suggest that you post the question in our Facebook forum or contact Lazada.

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