Digital transactions increased to over 50% of retail payments

The Bangko Sentral ng Pilipinas (BSP) said Tuesday it surpassed the target of digitalizing 50 percent of retail payments volume in the Philippines under the Digital Payments Transformation Roadmap 2018–2023.

It said that based on the 2023 Report on E-Payments Measurement, the share of digital payment transactions to total monthly retail payments in the country grew from 42.1 percent in 2022 to 52.8 percent in 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 Remolona Jr.

The latest e-payments measurement also showed that the share of monthly digital payments to total transactions climbed to 55.3 percent in 2023 from 40.1 percent in 2022.

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

It said that 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 to empower Filipino businesses and consumers into becoming 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,” said 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,” he said.