A new report by the Bangko Sentral ng Pilipinas (BSP) and Better Than Cash Alliance (Alliance) affirms the steady increase in the share of monthly digital payments made in the last two years, jumping from 10 percent in 2018 to 14 percent in 2019.
Digital merchant payments take the lead, expanding by 33 percent in 2019, primarily driven by high-frequency, low value retail transactions. The share of monthly digital payments by value, also increased from 20 percent to 24 percent in 2019.
Early estimates for the first semester of 2020 also provide encouraging indication for continued growth as the share of monthly digital payments by volume and by value, grew to 17 percent and 25 percent, respectively.
The COVID-19 pandemic has been a catalyst for the surge in digital payments usage in the country as physical distancing measures and quarantine protocols drove the demand for a contactless economy.
Consumers are increasingly using digital channels for remittances and merchant payments, which have grown by 39 percent and 66 percent, respectively, from 2018. The report also discusses trends in other priority use cases such as social benefits transfers and supplier payments by businesses.
Benjamin Diokno, BSP Governor, said the pandemic has highlighted the value proposition of digital payments.
“It is a good thing that the BSP had started to chart the country’s digital transformation journey even before the pandemic hit. As a result, the foundation for an effective, interoperable and reliable payment system is now in place, and the country is beginning to reap the benefits of going digital,” Diokno said.
