The Philippines is among the top three countries in Southeast Asia that strongly favor digital payment adoption in the small and medium businesses (SMBs), according to the latest survey by cybersecurity firm Kaspersky.
The Kaspersky report, Mapping a digitally secure path for the future of payments in Asia Pacific Region, said more than half of e-finance users in Southeast Asia believe SMBs should begin using digital payments for financial transactions. The survey had 1,618 respondents in 10 key territories in Asia Pacific.
Among the countries in Southeast Asia, 72 percent of consumers in Malaysia strongly favored SMBs’ adoption of digital payment systems, followed by Singapore with 68 percent and the Philippines, also 68 percent.
According to the study, the frequently used forms of digital payment among Southeast Asia consumers are mobile payment apps, internet banking via mobile phone, debit card, credit card and internet banking via browser with 58 percent, 53 percent, 36 percent, 33 percent and 31 percent, respectively.
Nearly three in five or 59 percent of respondents said they would shop more at stores that accept digital payments. Malaysian consumers, at 70 percent, are the most inclined to do so followed by Vietnam with 63 percent and the Philippines, 59 percent.
Respondents across the region noted convenience, ease of access and privacy as their top three reasons for being familiar and comfortable around these technologies.
Interestingly, the users are also aware of the issues that hamper SMBs in embracing this technology. More than a quarter or 27 percent of the total respondents admitted that local businesses are not ready to use digital payments yet because of internet issues and lack of devices.
This view is highest in the Philippines with 31 percent, followed closely by Vietnam at 30 percent, Indonesia at 29 percent and Thailand, 28 percent.
However, Kaspersky said it is a different matter when an e-commerce provider or seller is subjected to a cyberattack. The survey showed that the confidence of consumers to shop at stores that suffered data breaches dropped by 42 percent in general.
“It is worthy to note that while consumers are embracing the digital lifestyle and trusting these tools that make their financial transactions smooth and fast, they are also starting to gain an awareness of the dangers and risks of cyber threats in their personal lives,” said Yeo Siang Tiong, Kaspersky general manager for Southeast Asia.
“To put things in perspective, the cost of data breaches in SMBs rises by 54 percent but with early breach detection, the average losses would go 17 percent lower. The SMBs are now in a position to speed up their digital transformation. The radical changes to the demands and expectations of consumers can no longer be ignored or else, they might decide to bring their business elsewhere. I would venture to advise SMBs right now to act and ride the wave, so to speak,” Yeo added.
The demand for contactless payment systems is unprecedented and reflects the projected trajectory of rising e-commerce spending by 162 percent or $179.8 billion by 2025 with digital payments accounting for 91 percent of the transactions, according to research company IDC.
