Philippines surpasses digital payment target

By Francis Allan L. Angelo

The Bangko Sentral ng Pilipinas (BSP) reported a significant milestone in the country’s shift to digital payments, with the share of digital transactions in monthly retail payments growing from 42.1 percent in 2022 to 52.8 percent in 2023.

The achievement surpasses the BSP’s target of digitalizing 50 percent of retail payments by 2023 under its Digital Payments Transformation Roadmap 2018-2023.

“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 M. Remolona.

The latest e-payments measurement also revealed that the value of monthly digital payments increased, with the share of digital transactions rising to 55.3 percent in 2023 from 40.1 percent in 2022.

Key contributors to the rise in e-payments include 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.

The growth correlates with the increased ownership of transaction accounts, primarily e-money accounts, which are frequently used for payments.

With the country’s progress in digital payment adoption, the BSP, in collaboration with the payment industry, is well-positioned to further advance digital payments and empower Filipino businesses and consumers as 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,” emphasized Governor Remolona.

Governor Remolona also highlighted the broader impact of digital payments on various sectors.

“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.”

The BSP’s commitment to advancing digital finance underscores its ongoing efforts to create a more inclusive and dynamic financial ecosystem in the Philippines.

View the full report here: https://www.bsp.gov.ph/PaymentAndSettlement/2023_Report_on_E-payments_Measurement.pdf