Cash-on-delivery (COD) remains more entrenched in the Philippines than in any other Southeast Asian market, accounting for about 23% of e-commerce transaction value despite the growing use of real-time digital payments.
The Xendit Ecommerce Payments Momentum Report 2026 found that the Philippines had the highest COD share among the six Southeast Asian markets covered by the study. Vietnam ranked second, with COD accounting for around 16% of e-commerce value.
The findings highlight the challenge of moving Filipino online shoppers away from cash even as digital payment options expand.
About 33% of Filipino respondents said they were using COD much less than a year earlier. However, 12% said nothing would convince them to switch to another payment method, roughly twice the proportion recorded in most other markets surveyed.
Discounts and cashback were the most commonly cited incentives that could persuade consumers across the region to use digital payments instead of COD.
Xendit expects the Philippines to remain the only market in its study where COD accounts for more than 20% of e-commerce value in 2027.
At the same time, real-time digital payment methods are gaining ground. Transactions using QR Ph and InstaPay on Xendit’s platform grew 198% between January 2025 and April 2026, accounting for about 13% of Philippine e-commerce value recorded by the company.
E-wallet payments on the platform grew by only 3% during the same period, indicating that QR payments and direct bank transfers are expanding alongside established digital wallets.
Payment options also influence whether shoppers complete online purchases. Among Filipino respondents who abandoned an online purchase in the previous three months, 41% cited the absence of their preferred payment method as the main reason.
