GIVEN the boom in e-commerce and the adoption of digital payments among Filipinos, Paypal called for strong collaboration among industries, government, and regulators to raise awareness on digital payments.
It said that while the government is taking great strides in rallying Filipinos to adopt digital payments, the country hasn’t taken full advantage of it and it’s only scratching the surface.
The government recently launched the National Retail Payments System (NRPS) Framework, which seeks to create a reliable electronic payment system between banks and e- money accounts.
“The role of digital payments is rapidly evolving. More than just a mode of transaction between sellers and buyers, digital payments have become the platform for its users to achieve better financial well-being and greater economic opportunity,” said Rahul Shinghal, PayPal’s general manager for Southeast Asia, in a statement.
The Philippines is on its way to becoming a cashless nation, according to a recent study by Paypal.
In its report “Digital Payments: Thinking beyond Transactions,” Paypal revealed that 25 percent of the consumers surveyed indicated that traditional (physical credit card, bank transfer/internet banking, check etc.) and new payment methods are now their primary options when doing payments.
A third of consumer respondents in the Philippines have already started transacting without cash.
Paypal surveyed 4,000 consumers and 1,400 merchants across seven markets in Asia, of which 500 consumers and 200 merchants were from the Philippines.
Digital payments offer not just convenience and a more secure way to pay, but also provide consumers with more options.
Most respondents (74 percent) cited convenience as a reason to use digital payments, while another 57 percent said it was because of the lower processing and transaction fees they received when using digital payments.
The study showed that 27 percent of respondents prefer new payment options because of the increased amount of promotions they received, as compared to 23 percent who use traditional methods and 12 percent who use cash.
Paypal’s study also showed that the adoption of digital payments has also boosted business performance.
Among merchant respondents in the Philippines, 88 percent have turned to selling on social media. (KOC)