DIGITAL payments continued to gain ground in the Philippines in 2024, with more than half of monthly retail transactions now conducted electronically, according to the Bangko Sentral ng Pilipinas (BSP).
In its latest Status of Digital Payments in the Philippines report, the BSP said digital payments accounted for 57.4 percent of total monthly retail transaction volume and 59 percent in terms of value last year. These figures mark a significant increase from 52.8 percent and 55.3 percent, respectively, in 2023.
The sustained growth highlights the long-term effects of ongoing market developments, policy support, and rising public trust in digital platforms. The BSP first surpassed its 50 percent digitalization target in 2023 and is now building on that momentum.
Merchant payments, person-to-person (P2P) transfers, and business-to-business (B2B) supplier payments remained the key growth drivers. Merchant payments comprised 66.4 percent of monthly digital payment volume, followed by P2P transfers at 20.6 percent and B2B supplier payments at 6.2 percent. Combined, the three use cases accounted for 93.2 percent of all digital transactions.
The expansion is reflected in BSP’s Consumer Expectation Survey for the fourth quarter of 2024, which showed more consumers using digital channels for e-commerce purchases, bill payments, and electronic fund transfers. In line with this trend, the number of merchants accepting QR Ph jumped 148.7 percent year-on-year in 2024.
In a statement, BSP Gov. Eli M. Remolona said the central bank remains focused on leveraging financial technology to link markets and broaden participation in the formal financial system, ensuring that no Filipino is left behind.
He added that the BSP seeks to create an enabling environment where financial institutions and fintech firms can innovate and develop consumer-focused financial solutions that are both inclusive and adaptive to evolving needs.
The BSP’s strategy centers on strengthening the payments ecosystem through interoperability, public-private collaboration and expanding use cases that promote inclusion. The central bank also aims to balance innovation with consumer protection, ensuring that as the digital economy matures, it remains safe, accessible and trustworthy.
The rise of digital payments is seen as a catalyst for broader financial inclusion, offering underserved sectors and microenterprises access to the formal economy. / KOC