Internet Transactions Act Boosts Digital Economy, SMB Growth

The Internet Transactions Act (Republic Act 11967) has significantly enhanced the digital marketplace in its first year of implementation, promoting safer, more transparent, and accessible online transactions, according to Macy Castillo, CEO and co-founder of Enstack.

Castillo highlighted the law’s impact on small and medium businesses (SMBs), citing increased confidence among entrepreneurs to transition online, along with improved consumer protections and fair competition.

“Passing the Republic Act 11967 was crucial in establishing a safer, more transparent, and accessible digital marketplace,” Castillo said.

“At Enstack, we have seen firsthand how this legislation has helped enterprises—especially small and medium businesses—be more confident in going digital.”

Enstack, a digital commerce platform with over 200,000 online stores, serves as a key enabler of SMB digitization in the Philippines.

The platform supports entrepreneurs with tools for online payments, digital invoicing, and inventory management, aligned with the Act’s objectives.

Castillo urged the government to strengthen partnerships with digital platforms to amplify the law’s benefits and fuel innovation.

“The role of technology is not only to simplify and scale operations for businesses but also to support government policies in achieving greater economic growth,” she said.

Supporting SMB Digitization

Castillo suggested introducing measures requiring a minimum level of digital adoption for businesses, coupled with accessible training and affordable infrastructure.

This approach could fast-track the readiness of Filipino entrepreneurs to compete in a growing regional market.

She also called for stronger integration of digital policies across sectors such as agriculture, retail, and logistics to boost operational efficiency for SMBs.

Enhanced Awareness and Policy Adaptation

Castillo emphasized the need for robust awareness campaigns to educate business owners and consumers about their rights and responsibilities under the law.

“Many business owners and customers must know their rights and responsibilities under the Act,” she said, adding that private-sector partnerships could help deliver these messages effectively.

Additionally, Castillo advocated for periodic policy reviews and feedback mechanisms to ensure the law remains responsive to emerging challenges and opportunities in the rapidly evolving digital economy.

A Collaborative Future

The Internet Transactions Act aims to position the Philippines as a regional leader in digital transformation.

Castillo underscored the importance of collaboration among policymakers, industry leaders, and platforms like Enstack to amplify the law’s goals.

“By fostering collaboration and creating space for innovation, the Philippines can lead the region in empowering entrepreneurs to succeed and contribute to a more inclusive digital economy,” she said.

As the Philippines builds a dynamic and inclusive digital ecosystem, platforms such as Enstack play a vital role in driving SMB success and supporting the broader economic transformation.