Philippines sees tenfold growth in POS usage

The Philippines has experienced a remarkable tenfold increase in point-of-sale (POS) usage among adults, placing it second in Southeast Asia for POS adoption, according to a report by UnaCash, a digital financial solutions provider.

As of July 2024, 33.1% of Filipinos aged 15 and older now use POS systems, a sharp rise from just 3.2% in September 2018.

The surge is attributed to the growing popularity of mobile commerce and the widespread deployment of self-service POS kiosks across the country.

“The dramatic increase in POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions. The development of self-service kiosks and enhanced e-commerce platforms have further contributed to this significant rise,” said Erwin G. Ocampo, head of product at UnaCash.

The Philippines ranks just behind Indonesia, which leads Southeast Asia with a 67.5% POS usage rate. Indonesia’s success is driven by the rapid adoption of cloud technology, a thriving e-commerce sector, and the successful integration of digital payments.

In contrast, other countries in the region lag behind, with Vietnam at 4.5%, Malaysia at 2.8%, and Singapore at 1.6%, suggesting room for growth in these markets.

BNPL Adoption on the Rise

The Philippines is also seeing significant growth in the “buy now, pay later” (BNPL) sector. Since 2018, BNPL adoption has expanded 9.6 times, with 24.7% of the population now using these flexible payment solutions.

The strong performance positions the country among the top three in Southeast Asia for BNPL adoption.

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

“Its development presents significant opportunities for businesses and investors looking to engage with the expansion of the digital economy in the country.”

Other Southeast Asian countries also demonstrate strong BNPL growth.

Singapore leads the region with 75.4% of its population using BNPL services, while Vietnam follows closely with a 24.9% share.

However, other markets like Malaysia (10.2%), Thailand (6.0%), and Brunei (4.2%) remain in earlier stages of BNPL adoption.

Future Growth and Opportunities

The rapid growth in POS and BNPL usage in the Philippines is a reflection of the country’s increasing embrace of digital financial services.

The shift is driven by consumer demand for flexibility, the rise of e-commerce, and the development of in-store and online payment solutions.

UnaCash has positioned itself at the forefront of this digital transformation, offering in-app and in-store financial solutions tailored to the evolving needs of Filipinos.

The company’s “buy now, pay later” service, available via partner merchants, has been upgraded to include POS loans, providing consumers with more financial flexibility both online and in stores.

With its focus on analytics and data-driven solutions, UnaCash continues to bridge critical financial gaps in the Philippines, aiming to enhance financial inclusion and expand digital payment options.

For businesses and investors, the growing digital economy in the Philippines presents promising opportunities.

The continued rise in POS and BNPL usage signals a rapidly evolving financial landscape that offers significant potential for innovation and growth.