PH emerging leader in digital payments

THE Philippines is emerging as one of the leaders in digital payment solutions in Southeast Asia, achieving a 10-fold increase in the number of point-of-sale (POS) users, a UnaCash study showed.

Financial solutions provider UnaCash said that the country recorded a 33.1-percent POS user share among adults age 15 and older as of July 2024, up from just 3.2 percent in September 2018.

The growth was said to have been driven by the rise in mobile commerce and POS kiosks.

While Indonesia leads the pack with 67.5 percent, the Philippines outpaced other countries such as Vietnam (4.5 percent), Malaysia (2.8 percent), and Singapore (1.6 percent), which have smaller but growing POS markets.

“POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions,” UnaCash product head Erwin Ocampo said.

“The development of self-service kiosks and enhanced e-commerce platforms have further contributed to this significant rise,” he added.

UnaCash also observed that buy now, pay later (BNPL) adoption in the Philippines had grown 9.6 times since 2018, showing a strong shift toward flexible payments.

With a stable user base of 24.7 percent, the Philippines ranked among the top three in Southeast Asia in BNPL adoption, trailing behind Singapore (75.4 percent) and Vietnam (24.9 percent).

According to UnaCash, BNPL usage among those ages 15 and older had increased at a steady pace of 3.3 percent monthly from September 2018 to July 2024.

“The country’s solid performance in BNPL adoption reflects a growing trend toward financial solutions such as this, primarily driven by increasing digital financial services and consumer demand for flexible payment options,” UnaCash said.

Other markets such as Malaysia (10.2 percent), Thailand (6.0 percent), Brunei (4.2 percent), and Cambodia (3.6 percent) have lower BNPL usage, the study showed.

“It’s quite evident that in the local market, there is a growing appetite for BNPL services, driven by increased e-commerce and a rising preference for convenient financial options,” Ocampo said.

“Be it through the online space or through in-store channels, its developments present significant opportunities for businesses and investors looking to potentially engage with the expansion of the digital economy in the country,” he added.