The Bangko Sentral ng Pilipinas (BSP) has reported that the Philippines is making significant progress in its digital payments transformation. According to the BSP's report released on Sunday, the country is on track to shift half of all retail payments from cash to digital channels this year.
Increasing Volume and Value of Digital Payments
In 2022, the volume of digital payments as a share of total retail payments grew to 42.1 percent. The BSP's Digital Payments Transformation Roadmap aims to achieve a target of 50 percent digital retail payments in 2023. The report highlights that there was a significant increase of 611.7 million retail payment transactions compared to the previous year.
Dominant Players in Retail Payments
Among different sectors, payments made by persons to persons accounted for the largest share of the total retail payments volume at 68.6 percent. Payments made by businesses constituted 30.3 percent, while payments made by the government accounted for 1.1 percent.
Advancing Financial Inclusion
Former BSP Governor Felipe Medalla stated that these statistics demonstrate the Philippines' notable progress in building an inclusive retail payment landscape. Shifting to digital payments not only boosts financial inclusion but also enables convenient and efficient transactions for individuals and businesses alike.
Rise of Digital Payments during the Pandemic
The COVID-19 pandemic accelerated the adoption of digital payments in the Philippines. E-wallets and online bank transfers became popular alternatives to cash as people sought contactless payment methods during strict lockdown measures.
With the Philippines on track to achieve its digital payments target, the BSP's efforts to promote a robust digital payment ecosystem are yielding positive results. Embracing digital payments not only enhances financial inclusion but also offers convenience and safety in an increasingly digital world.
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