Digital Payments Now Account For Half Of Retail Transactions

The share of digital payment transactions in total monthly retail payments in the Philippines grew from 42.1 percent in 2022 to 52.8 percent in 2023, according to the 2023 Report on E-Payments Measurement by the Bangko Sentral ng Pilipinas (BSP).

The main contributors to the rise in e-payments were merchant payments.

This indicates that the central bank has surpassed its target of digitalizing 50 percent of payment volumes in the country under its Digital Payments Transformation Roadmap 2018-2023.

“We take pride in this achievement as proof that our pursuit of a cash-lite economy has consistently been progressing. We owe this to our citizens, who are the foremost beneficiaries of a safe, efficient, and inclusive digital payments system. As we serve their payment needs and deepen financial inclusion, we are ready to bring digital finance to new heights,” said BSP Governor Eli M. Remolona.

In terms of value, the latest e-payments measurement also showed that the share of monthly digital payments to total transactions increased to 55.3 percent in 2023 from 40.1 percent in 2022.

The main contributors to the rise in e-payments were merchant payments, which accounted for 64.9 percent of monthly digital payments volume; person-to-person transfers at 19.3 percent; and business-to-business supplier payments at 6.1 percent.

This growth is consistent with the increase in ownership of transaction accounts, which are mostly e-money accounts that are increasingly used for payments.

With the country’s progress in digital payments adoption, the BSP, in partnership with the payment industry, is strategically positioned to advance digital payments and empower Filipino businesses and consumers to become more active contributors to economic growth.

“We should not rest on our laurels. Achieving the target is not the end goal. What we would like to see are lives being transformed by our policies,” emphasized Governor Remolona.

“When Overseas Filipinos conveniently send remittances at faster and cheaper rates; when businesses, particularly micro, small, and medium enterprises, accept e-payments and transact with suppliers and billers digitally; and when every Juan and Maria’s preferred mode of payment is digital – these represent the fulfillment of BSP’s vision of a safe, efficient, reliable, and inclusive payment system,” the Governor explained.