Payment through a standardized use of QR code in the Philippines is expected to reach up to P250 trillion by the end of 2023, according to UnaCash, an installment solutions provider.
In a statement, UnaCash said it expects the volume of payments to grow up to P200 trillion to P250 trillion in 2023 through a standardized use of QR Ph, boosting financial inclusion and massively expanding digital payments to all segments of the population in the Philippines.
The forecast was based on data on the volume of transactions through the QR Ph system in the first quarter of 2023 amounting to about P32.7 billion, a 23 percent increase from the previous quarter and a 159.8-percent jump from the same period in 2022 in US dollar.
With the expected transaction volume, UnaCash said the QR Ph system serves as the main growth driver for InstaPay in 2023.
The anticipated transaction volume through person-to-person (P2P) digital transfers and person-to-merchant (P2M) payments based on the national payment system InstaPay is expected to reach approximately P1.309 trillion, according to UnaCash.
There are 38 P2P QR Ph providers, accounting for 15 percent of all payment system operators, alongside 27 P2M QR Ph providers which make up to 11 percent in total.
In the second half of 2023, UnaCash said, there is a potential to double to 76 and 52 the P2P and P2M QR Ph providers, respectively.
As a result, the use of payments through the QR Ph system is gaining momentum as an alternative to traditional debit and credit card payments, UnaCash added. Its inherent advantages over these payment methods include the simplicity, convenience and security of simply scanning a QR code.
Services similar to UnaCash recognize the value that this may potentially bring to businesses in the country.
As a part of its system upgrades, UnaCash said it will implement the use of QR codes for direct processing of application of point-of-sale loans through its partner merchants in the coming year. The payment process will also become more convenient and effortless, as it will remain readily accessible through InstaPay.
Aleksei Kosenko, UnaCash president and chief executive officer, QR Ph will optimize the payment transfer process between our existing and future partner sellers, achieving seamless transactions.
QR Ph was designed to introduce a mass system of QR codes that can be generated by any bank or non-banking electronic money issuers certified by the Bangko Sentral ng Pilipinas (BSP) to facilitate customer requests for funds and transfers of payments. This was developed to expand digital payments to all segments of the population, increasing the liquidity of the Philippine banking system.
To standardize QR codes used by certified payment service providers, BSP mandated Memorandum No. M-2023-005 to banks and financial institutions to fully implement QR Ph by July 1, 2023, as part of a national objective to expedite the process of digitalization in the country, as outlined in their Digital Transformation Roadmap 2020-2023.
