Boosting PH digital economy with cashless transactions

Visa

Posted at Jul 26 2022 12:20 PM

Photo source: Pexels [LINK OUT 'Pexels': https://www.pexels.com/photo/paying-with-a-smartphone-4199526/
Photo source: Pexels 

Less and less Filipinos are using cash transactions.

Since 2020, Filipinos have become more aware of new, safe, and convenient ways of doing their transactions. From saving money, paying for purchases to paying bills, Filipinos' usage and awareness level of digital commerce and banking have grown and more people prefer to go cashless.

Where Filipinos use contactless card payments most

Photo source: Visa
Photo source: Visa

According to Visa, one of the world leaders in digital payments, launching their latest findings of its annual Consumer Payment Attitudes study for 2021 – 14% of the respondents used contactless cards to pay for their transactions for the first time in 2020. 12% of their respondents, led by the Gen Z and Gen Y age groups, will be less likely to use cash after the current health crisis.

This means that cashless payment forms such as cards and e-wallet, as well as digital bank platforms will play a bigger role in the transition to a cashless Philippine society.

The research also found that 16% of Filipinos use contactless card payment in supermarkets, 16% in retail shopping, 15% in food and dining, 12% for overseas travel, and 11% for gasoline.

Filipinos are now using contactless card transactions more than ever. Photo source: Visa Philippines website [LINK OUT 'website': https://www.visa.com.ph/pay-with-visa/contactless-payments/contactless-payments.html
Filipinos are now using contactless card transactions more than ever. Photo source: Visa Philippines website

70% of the respondents started to use online banking more, to enjoy the convenience of doing their banking while mobile as well as help protect themselves from being exposed to crowds and queues in closed spaces which contain more health risks these days. This trend means that going contactless will become more of a lifestyle for the majority of Filipinos for practicality and hygiene as their top reasons for going cashless.

How will Filipinos ensure safe and secure transactions

Photo source: Visa
Photo source: Visa

As Filipinos were introduced to convenient ways of buying their everyday needs and completing their banking transactions in the comfort and safety of their own homes, Filipinos used e-commerce more, and in parallel also strengthened digital banking usage and popularity.

New shopping trends rose such as: online marketplaces, 'pabili' or errand groups, online shopping portals, and online livestream shopping. According to Visa’s research, 45% of their respondents have veered to purchasing from livestream shopping and started to enjoy it.

Overall, the research and trend show that we see more Filipinos welcoming the idea of going totally cashless. But what does this mean for our Philippine economy?

Future of a fast and growing economy

This means that transactions and business will run at a faster speed. The country can grow economically if Filipinos and businesses are able to take advantage of this accelerated trend. But with the new trend, we must also understand the risks and boost our security to help protect our hard-earned money.

Therefore, it is extremely important to only trust our finances and transactions to companies and platforms that can keep our money safe, as we save and spend in the fast digital age.

Visa is leading in understanding and solving the payment needs of the Filipino. Providing not only prepaid, debit and credit cards but also safe, fast, and easy digital payment methods for its users such as contactless technology that are now being used worldwide through cards and other tokenized items such as smartphones and wearables through collaborations with banks and other financial institution clients. Visa is leading in helping keep our hard-earned money safe and finding solutions to make transactions quick and easy.

Only trust a platform that is leading in safety and change. 

To know more about Visa's services visit their website

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