Monday, June 24, 2024

Cashless payments in PH surging, says new Visa report

The increasing popularity of cashless payments, including mobile wallets and cards, has had a notable impact on the preferences of Filipino consumers.

Based on Visa’s recent Consumer Payment Attitudes Study in the Philippines, it is observed that a significant portion of Filipino consumers are opting for cashless payments, leading to a decrease in their willingness to use cash.

Although cash remains a commonly used payment method, the study highlights that a substantial 82% of Filipinos attempted to embrace cashless transactions in 2022.

Of those, nearly half (40%) were successful in using cashless payments for a few days, while approximately 9% managed to sustain cashless transactions for over one month.

According to Visa’s research, there has been a decline in the frequency of cash payments, dropping from 7.8 out of every 10 purchases in 2021 to 6.4 in the subsequent year.

This shift can be attributed to two significant factors: 62% of consumers increasingly relying on cashless payments and 61% expressing concerns about the safety of carrying cash.

The Consumer Payment Attitudes Study is conducted annually to provide insights into consumer payment behaviors in key markets, such as the Philippines.

The most recent survey, conducted from September to October 2022, involved interviews with 1,000 Filipino consumers aged between 18 and 65 years old.

“The increasing adoption of cashless and contactless payment methods is a testament to the growing preference among Filipinos for safe and convenient transactions,” said Jeff Navarro, Visa country manager for the Philippines and Guam.

“As consumers realize the benefits of cashless options such as mobile wallets and cards, we are witnessing a progressive shift towards a cash-lite society in the Philippines,” he noted.

Navarro said the study provides encouraging data that highlights the readiness of Filipinos to embrace secure and seamless digital payment solutions

Mobile wallets and cards are the preferred cashless payment options among Filipinos, according to the survey. Mobile wallet usage reached 89% in 2022, while card payments accounted for 70%.

Online and in-app payments were the most frequent among mobile wallet users, representing 68% of total usage, the study revealed.

For card payments, online transactions were the most common at 50%, followed by in-store payments at 43%. Contactless payments through card tapping constituted 37% of usage.

Filipinos are also embracing alternative payment methods like contactless cards and QR codes, the report said.

Contactless card usage has increased from 27% to 37% in 2022, while QR code usage has risen from 36% to 53%. Contactless transit card adoption has also reached 73%.

“These trends reflect the growing acceptance and benefits of modern payment options in the Philippines. The data is encouraging, as it brings us closer to a cashless Philippines,” said Navarro.

“We anticipate that cashless and contactless payment methods will continue to gain prevalence in terms of awareness, interest, and usage.”

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