The future of digital payments


    By Hamilton Angluben

    Last of two parts

    On the other hand, consumers can also now “Shop Now and Pay Later” under Pay with Cashalo. It’s the country’s first true ‘online-to-offline (O2O) basket financing’, designed to give underserved consumers the ability to finance a variety of products or a ‘basket’ of goods using digital credit in over 500 retail stores. In addition, you can get pre-approved for digital credit in the Cashalo app even before you visit a store, allowing you to better plan your purchases.

    Topping our offerings under Pay with Cashalo is PayLater, a nano-financing solution that gives out loans for a maximum of P200 which you can use for purchases from various merchant partners.

    Used responsibly, these digital credit payment solutions can help the unbanked and underserved better plan and manage their finances while affording them the capability to meet their current and emergency needs. Ultimately, we enable them to build financial identities by slowly introducing them to the many benefits of formal financial services.

    However, these initiatives need to be reinforced by extensive financial education efforts to equip Filipinos with basic financial knowledge and decision-making skills. For this, we created our own national financial education initiative: “CashAcademy.” This program works on developing a generation that is more financially knowledgeable, responsible, and empowered. Through this, we want to provide every Filipino with the necessary skills and services to improve their financial health and make them “Pera Experts”—financially aware and responsible.

    With better financial knowledge, digital payments space can further scale and benefit more Filipinos, especially those who are most in need. Education can shed light on prevailing trust and security issues that impede adoption and slow down our transformation from a cash-heavy to cash-lite society.
    But we get will there.

    The BSP Governor Benjamin Diokno predicts that in the next five years, 50 percent of all payment transactions will be done electronically. With private and government sectors collaborating, we can expect more exciting developments towards realizing a financially inclusive Philippines. (Author is General Manager at Cashalo.)