Digital Payments Use In PH Nears 60% Of All Retail Transactions

Digital payments usage continues to expand in the Philippines, now capturing a 59.0 percent share of total monthly retail transactions in terms of value and 57.4 percent in terms of volume, the Bangko Sentral ng Pilipinas (BSP) reported.

The BSP remains steadfast in fostering a payments system that is safe, efficient, and inclusive—one that supports innovation, strengthens financial resilience, and empowers every Filipino to participate more meaningfully in the digital economy.

These figures represent a significant jump from 55.3 percent and 52.8 percent, respectively, in 2023, according to the BSP’s 2024 Report on the Status of Digital Payments in the Philippines.

The total value of online transactions reached $135.95 billion, compared to $94.54 billion in non-digital payments.

Meanwhile, the volume of digital payments was 3.307 billion, versus 2.45 billion for non-digital transactions.

Merchant payments, person-to-person (P2P) transfers, and business-to-business (B2B) supplier payments remained key contributors to the growth of digital payments, the BSP noted.

According to the report, merchant payments made up 66.4 percent of the monthly digital payment volume, while P2P transfers accounted for 20.6 percent, and B2B supplier payments 6.2 percent.

These three use cases collectively drove 93.2 percent of the total volume of digital transactions.

The BSP said the steady year-on-year growth builds on the momentum generated after surpassing the 2023 digitalization target of 50 percent of payment volume, as outlined in its Digital Payments Transformation Roadmap.

Big Leaps Over the Years

From just 1 percent usage in 2018 in terms of transaction volume—and 20 percent in terms of value—digital payments have steadily gained favor among Filipinos.

The results of the report align with findings from the BSP's Consumer Expectations Survey (CES) for the fourth quarter of 2024, which indicated a growing number of consumers making digital payments for e-commerce purchases, bills, and electronic fund transfers.

Digital payment channels such as electronic (e-) wallets have expanded access to financial services.

The BSP also noted a rise in the ownership of transaction accounts, particularly e-money accounts increasingly used for payments. Correspondingly, the number of merchants accepting QR Ph grew by 148.7 percent year-on-year in 2024.

According to the BSP, this growth trajectory reflects the long-term impact of market developments, policy reforms, and the increasing trust and familiarity of Filipinos with digital payment options.

“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.

Expansion of the Digital Finance Ecosystem

The BSP emphasized its strategic focus on strengthening the digital payments ecosystem, particularly through interoperable systems, public-private partnerships, and the development of use cases that benefit all sectors of society.

It highlighted that expanding the digital finance ecosystem enhances accessibility, affordability, and inclusivity—especially for microenterprises and underserved sectors—helping them thrive within the formal financial system.

“We take pride in this achievement as proof that our pursuit of a cash-lite economy is making steady progress. We owe this to our citizens, who are the foremost beneficiaries of a safe, efficient, and inclusive digital payments system,” Remolona said earlier.

“As we serve their payment needs and deepen financial inclusion, we are ready to bring digital finance to new heights.”

With the country’s strong progress in adopting digital payments, the BSP, in partnership with the payment industry, is well-positioned to further advance digitalization and empower both Filipino businesses and consumers to become more active contributors to economic growth, he said.

“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 the BSP’s vision of a safe, efficient, reliable, and inclusive payment system,” Remolona said.

Ensuring Transaction Safety

The BSP reaffirmed its commitment to promoting the sustained use of digital payments, citing the benefits to consumers, businesses, and government. It emphasized that digital payments provide faster, safer, and more convenient options.

As digitalization advances, the BSP also stressed the importance of balancing innovation with consumer safety and trust.

Remolona concluded that the BSP remains steadfast in fostering a payments system that is safe, efficient, and inclusive—one that supports innovation, strengthens financial resilience, and empowers every Filipino to participate more meaningfully in the digital economy.