Unified merchant database to accelerate MSME digital adoption, strengthen ASEAN economic growth

A unified merchant database and verifiable identity are key to helping Filipino MSMEs adopt digital platforms and grow in the digital economy, Oscar Enrico Reyes Jr., president and CEO of G-Xchange Inc., the mobile wallet operator of GCash, said in a panel discussion during the ASEAN Business Environment Forum.

Closing the digital gap would enable Filipino entrepreneurs to engage in cross-border transactions and access the ASEAN market. This means they can sell products and services to a wider audience, connect with regional partners, and participate in the regional supply chain.

As such, Filipino enterprises can better compete regionally and tap into new growth opportunities, beefing up their revenue streams in the long run.

However, many MSMEs find it challenging to join the digital space because of fragmented ecosystems for identification, preventing them from fully realizing their business venture’s potential.

“In fact, it’s so cumbersome to onboard a merchant. It can take months because of the back and forth on documents just to verify their identity,” Reyes explained, noting that merchants deal with multiple permits from local government units and agencies.

“If it’s all in one repository, then you just need to pick that particular repository, and then it makes it so much simpler,” he added.

With an official GCash account for merchants, MSMEs can accept digital payments, manage transactions more efficiently, and grow their business through a bigger customer base.

Strengthening regional cooperation

Reyes was joined by leaders from different companies, including Chin Yin Ong, Chief Organisational Capability Officer, Grab; Arifah Sharifuddin, Institute Director, Tech for Good Institute (TFGI); and Nabila Hussain, Director of Government Affairs, Southeast Asia, Microsoft ASEAN.

The panelists highlighted the importance of strong cooperation between governments and the private sector, especially in advancing digitalization efforts. Such collaboration can help develop infrastructure, create supportive regulations, and provide training and resources for businesses to adopt digital tools.

This is aligned with the ASEAN Digital Economy Framework Agreement, which aims to create a more integrated and seamless digital economy in the region by aligning rules, improving cross-border data flows, and supporting digital trade.

The industry leaders also stressed that practical, results-driven partnerships can better support enterprises and improve the overall business environment in the region. These efforts, they noted, help create a more stable and business-friendly ecosystem that benefits companies across ASEAN.

Prioritizing trust and security

Apart from providing access, however, Reyes stressed that merchants must also feel safe navigating the digital platforms.

“It starts with trust. There has to be trust in the whole ecosystem,” he explained.

This is where cybersecurity measures come in. For GCash, protecting users’ accounts and transactions means using multiple layers of security.

The platform employs advanced encryption to keep data safe and multi-factor authentication to verify user identities. Real-time fraud detection and continuous monitoring help catch suspicious activity and prevent unauthorized access.

Together, these measures ensure that every payment, transfer, and investment is safe, secure, and reliable.