Phl still lags behind in cashless payments
The Philippines is catching up in adopting mobile, cashless payment, as the population's propensity to adopt the digital platform of transacting remains a key challenge.
In a recent interview with The FREEMAN, Paul Azzola, chief operating officer of PayMaya Philippines, a mobile payment system, said that while the Philippines remains lagging behind developed markets in terms of cashless transactions such as Hong Kong and Singapore, the country is "catching up in mobile payments."
Azzola said the country's increasing mobile payment transactions is a significant signal of the early growth of its transition in the digital economy.
The executive explained that the country's shift to mobile payment platforms relies on three key factors namely the availability of smartphones, reliable data connection and the propensity of Filipino consumers to adopt the cashless payment.
"2018 is a tipping point for digital payments adoption in the Philippines," Azzola said.
He said the country is on the right track moving forward, considering the Bangko Sentral ng Pilipinas is "extremely supportive of e-money issuers and digital payment" in the country.
The National Retail Payment System initiative led by the Bangko Sentral ng Pilipinas aims to increase the share of electronic transactions in the country by 20 percent in 2020.
DIGITAL'S IMPACT
In an earlier study called “Digital Payments: Thinking beyond Transactions”, American online payments system PayPal said the adoption of digital payments is having a big impact on the financial lives of consumers and businesses in the Philippines.
The research highlighted the positive impact digital payments can have on consumer and merchant welfare by reducing inefficiencies and unlocking economic opportunities.
The Philippines is well on its way to be a cashless nation, with 25 percent of consumers surveyed indicating that traditional (physical credit card, bank transfer/internet banking, cheque etc.) and new payment methods are now their primary options.
Digital payments offer not just convenience and a more secure way to pay, but also provides consumers with more options.
The study also revealed that digital payments have provided consumers with the tools to better manage their finances, in particular, one of the most challenging financial issues faced by consumers – bill payments.
Digital payments offer a transformational solution for merchants because they increase convenience for consumers. Additionally, merchants are able to reap large efficiency gains transitioning from cash to digital payments and moving away from manual to electronic financial tracking.
The Philippines government is making great strides in rallying Filipinos to adopt digital payments, including the launch of the National Retail Payments System (NRPS) Framework, which seeks to create a reliable electronic payment system between banks and e-money accounts.
"Yet, the country is only scratching the surface of what it could be. Industry players and government regulators within the payment ecosystem need to collaborate to further drive adoption of digital payments and unlock the full potential of this new payment method," PayPal said.