DTI, Mastercard partnership to help Filipino MSMEs go digital

MANILA — The Department of Trade and Industry (DTI) has partnered with global payments technology company Mastercard to help Filipino micro, small and medium enterprises (MSMEs) expand their online businesses, adopt secure digital payments, and reach more customers as electronic transactions increasingly dominate Philippine commerce.

The partnership, formalized through a memorandum of understanding (MOU) signed Oct. 26, 2026, seeks to address persistent gaps in digital skills, payment security, and technology adoption among small businesses.

For entrepreneurs, particularly those operating neighborhood stores, small retail outlets, and home-based enterprises, the initiative could provide opportunities to increase sales, reduce dependence on cash transactions, and serve customers beyond their immediate communities.

The collaboration also highlights a growing challenge in the country’s digital economy: While electronic payments are becoming mainstream, smaller businesses still need adequate training, affordable technology, and safeguards against online fraud to participate effectively.

Under the agreement, the DTI’s E-Commerce Bureau (ECB) and Mastercard will collaborate to expand access to digital technologies and electronic payment solutions while strengthening merchants’ confidence in conducting business online.

The initiative will combine government enterprise development programs with Mastercard’s experience in payment technology to help businesses adapt to changing consumer preferences.

“Many small businesses are already selling online. What some still need is greater confidence in accepting payments and engaging with customers safely and securely. By working with Mastercard, we hope to bridge that gap and help them get there,” DTI ECB Director Eryl Royce R. Nagtalon said.

The partnership comes as digital payments account for a growing share of everyday transactions in the Philippines.

According to the Bangko Sentral ng Pilipinas’ (BSP) 2025 E-Payments Measurement Report, digital transactions represented 64.69% of retail payments by volume last year, up from 57.45% in 2024.

The increase of 7.24 percentage points reflects the continued shift toward electronic payment channels, including mobile wallets, bank transfers, and digital merchant transactions.

Merchant payments, including purchases from MSMEs, accounted for 74.31% of all digital transactions in 2025, underscoring the importance of electronic payments in retail and commercial activity.

The expanding use of digital payments has created opportunities for small businesses to serve customers who increasingly prefer cashless transactions.

For merchants, electronic payments can reduce the need to handle physical cash, simplify transaction records, and support sales through online marketplaces and social media platforms.

Digital transaction records can also help businesses monitor revenues, manage inventory, and document financial activity when applying for loans or other financing.

However, access to payment technology does not automatically translate into business growth.

Small enterprises must also understand how to protect customer information, identify fraudulent transactions, manage digital accounts, and resolve payment disputes.

These challenges can be particularly significant for businesses with limited technical knowledge or resources to invest in digital systems.

The DTI-Mastercard collaboration aims to address these barriers through practical training and resources tailored to the needs of small merchants.

Mastercard Philippines country manager Jason Crasto said the initiative recognizes the importance of MSMEs to the national economy and the potential of digitalization to strengthen their competitiveness.

“MSMEs are at the heart of the Philippine economy, and digitalization can give them new ways to reach customers, operate more efficiently and compete in an increasingly connected marketplace. At Mastercard, we want to help make that opportunity more accessible by giving businesses not only access to digital payment solutions, but also the knowledge and confidence to use them effectively,” Crasto said.

“Through our work with the DTI, we look forward to helping more Filipino MSMEs take the next step in their digital journey and unlock new opportunities for growth.”

The partnership also supports the government’s broader efforts to build a more inclusive digital economy by helping smaller enterprises participate in electronic commerce.

MSMEs account for more than 99% of registered business establishments in the Philippines and provide a substantial share of employment, making their digital competitiveness important to economic growth and job creation.

Their ability to adopt digital technologies can influence not only business profitability but also employment opportunities, local supply chains, and the availability of goods and services to consumers.

In Western Visayas, where many enterprises operate in retail, tourism, food services, agriculture-related trade, and other small-scale businesses, improved digital capabilities could help entrepreneurs reach markets outside their home provinces.

Online marketplaces and electronic payments can make it easier for small businesses in Iloilo, Aklan, Antique, Capiz, Guimaras, and Negros Occidental to accept orders and payments from customers in other parts of the country.

These opportunities are especially relevant to microenterprises that may lack the financial capacity to establish physical stores in larger commercial centers.

However, expanding digital commerce also requires reliable internet connectivity, transparent transaction fees, and consumer protection measures to ensure that smaller merchants are not disadvantaged by the cost of adopting new systems.

The BSP has been promoting interoperable payment infrastructure to make electronic transactions more accessible across banks and financial service providers.

Its QR Ph initiative, for example, allows customers and merchants using participating financial institutions to transact through a common national QR code standard.

In 2025, QR Ph transactions reached approximately 2.47 billion, with a combined value of PHP 1.16 trillion, reflecting growing consumer use of QR-based payment services.

For MSMEs, such systems can reduce barriers to accepting cashless payments, although transaction charges, access to smartphones, and digital literacy remain important considerations.

The DTI-Mastercard agreement is expected to complement these developments by focusing on the practical skills businesses need to use digital tools effectively.

The DTI ECB will contribute its experience in local enterprise development, e-commerce promotion, and support for Filipino entrepreneurs.

Mastercard will provide expertise in electronic payments and digital commerce technologies, including knowledge of secure transaction processes.

Together, the organizations plan to introduce training programs and practical resources to help small merchants strengthen their online operations, improve payment acceptance, and respond to changing customer behavior.

The collaboration also seeks to build long-term business resilience by helping enterprises maintain operations and develop alternative sales channels as commerce becomes increasingly digital.

The announcement did not specify the number of MSMEs targeted, the budget allocated to the partnership, or a timetable for the nationwide rollout of training activities.

These implementation details will be important in determining how effectively the program reaches smaller businesses, particularly those outside major urban centers.

For Filipino entrepreneurs, the success of the partnership will ultimately depend on whether digital training and payment technologies translate into stronger sales, safer transactions, and more sustainable businesses.

As electronic payments become a standard part of everyday commerce, ensuring that micro and small enterprises have the skills and resources to participate will be essential to making the country’s digital transformation more inclusive.