The Philippines continues to make headway in digital payments with the share of digital payments to total monthly retail transactions rose to 57.4 percent in terms of volume and 59.0 percent in terms of value.
These are up from 52.8 percent and 55.3 percent, respectively, in 2023, according to the Bangko Sentral ng Pilipinas (BSP) in its “2024 Report on the Status of Digital Payments in the Philippines”.
The steady year-on-year growth reinforces the momentum built after surpassing the 2023 digitalization target of 50 percent for volume.
“The upward trajectory reflects the long-term impact of market developments, policy initiatives, and the growing trust and familiarity of Filipinos with digital payment options,” the central bank said.
Consistent with the previous year, merchant payments, person-to-person (P2P) transfers, and business-to-business (B2B) supplier payments remained key contributors to growth in digital payments, the report said.
Merchant payments comprised 66.4 percent of the monthly digital payment volume, while P2P transfers and B2B supplier payments accounted for 20.6 percent and 6.2 percent, respectively.
The three use cases, the report stressed, drove the surge in digital transactions, collectively accounting for 93.2 percent of the total volume.
The results are consistent with the BSP Consumer Expectation Survey (CES) for Q4 2024, which showed an increasing number of consumers performing digital payments for e-commerce purchases, bills payments, and electronic fund transfers.
Consistent with this, the number of merchants accepting QR Ph grew by 148.7 percent year-on-year in 2024.
“The BSP continues to pursue its vision of harnessing technology and finance not only to connect markets but also to ensure that every Filipino becomes part of the formal financial system,” BSP governor Eli M. Remolona said.
“In this light, we aim to foster an environment that empowers our regulated entities and fintech partners to leverage innovation in designing financial products that are not only accessible but also more responsive to the needs of consumers,” he added.
The BSP said its strategic approach remains focused on enhancing the payments ecosystem, particularly through interoperable systems, public-private partnerships, and the development of use cases that benefit all sectors of society.
“Expansion of the digital finance ecosystem makes transactions more accessible, affordable, and inclusive. It also helps microenterprises and underserved sectors thrive in the formal financial system,” it said.
“As digitalization advances, the BSP recognizes the importance of striking a balance between fostering innovation and upholding consumer safety and trust.”
