UnaCash says the high POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions. (malaya.com.ph)

UnaCash, an in-app and in-store financial solutions provider, reveals that the Philippines is standing out in the digital payment solutions sector within Southeast Asia.

As of July 2024, the country boasts a 33.1 percent point-of-sale (POS) share of users among adults aged fifteen and older.

This marks a dramatic increase from 3.2 percent in September 2018, reflecting a tenfold increase attributed to the surge in mobile commerce and the rise of POS kiosks.

The country is only surpassed by Indonesia, which has a high share of POS usage of 67.5 percent, mainly due to the widespread use of cloud technology adoption, thriving e-commerce, and successful integration of digital payments.

With the share of POS users of 4.5 percent in Vietnam, 2.8 percent in Malaysia, and 1.6 percent in Singapore, POS markets in these countries are at earlier stages of development, indicating potential for growth.

“POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions. The development of self-service kiosks and enhanced e-commerce platforms have further contributed to this significant rise,” said Erwin G. Ocampo, head of product for UnaCash.

Meanwhile, buy now, pay later (BNPL) adoption in the Philippines has surged over the past few years, expanding 9.6 times since 2018, reflecting a strong consumer shift towards flexible payment solutions.

There is a stable share of BNPL users at 24.7 percent, placing it among the top three countries in Southeast Asia.

For users aged fifteen and above, 3.3 percent increase was reflected monthly from September 2018 until July 2024. The country’s solid performance in BNPL adoption reflects a growing trend towards financial solutions such as this, primarily driven by increasing digital financial services and consumer demand for flexible payment options.

Singapore led the region in share of BNPL users at 75.4 percent, with its user base having increased 7.1 times with a modest average monthly growth rate of 2.8 percent over the same period.

Vietnam, displayed a penetration rate of 24.9 percent — a comparable growth rate of 7.1 times — with a 2.8 percent monthly increase. Meanwhile, other Southeast Asian markets such as Malaysia (10.2 percent), Thailand (6.0 percent), Brunei (4.2 percent), and Cambodia (3.6 percent) had lower share of BNPL users.

“It’s quite evident that in the local market, there is a growing appetite for BNPL services, driven by increased e-commerce and a rising preference for convenient financial options. Be it through the online space, or through in-store channels, its developments present significant opportunities for businesses and investors looking to potentially engage with the expansion of the digital economy in the country,” Ocampo said.

UnaCash offers people-centric, in-app and in-store digital financial solutions tailored to the evolving needs of Filipinos. Its ‘Buy now, Pay later’ service has been upgraded to include point-of-sale loans, accessible via online and in-store partner merchants.