MANILA, Philippines - For a majority of young Filipinos, cash is king for now. In the future, they believe they will be able to make all payments through online transactions and mobile phones.
In the "Connecting with the Millennials" study conducted by Visa, 8 of 10 Filipino Millennials (aged between 18 to 28 years old) believe they can do all their shopping and bill payments online in the future.
Another 69% say these online payments will be possible using their mobile phones.
"It’s no surprise that most Filipino Millennials are digitally connected and heavily reliant on technology. These young people are growing up in a digital world, and they are the early adopters of new technology like contactless and mobile payments that make our lives easier. For Filipino Millennials, they look to digital currency as the future, offering a better and more secure way to pay,"
said Iain Jamieson, Visa country manager for Philippines and Guam.
But Filipino Millennials, who are born between 1982 and 1992, are currently still more comfortable using cash when making payments. In the study, Filipinos (70%) and Taiwanese (71%) use cash the most among Asian countries.
"Seven in 10 choose cash as their preferred payment method. Given this, ownership of debit and credit cards is lower than their neighbors with an average of 1.51% and 0.96% cards per person," the study showed.
Filipinos are also wary of using credit cards and debit cards. "There is also a general lack of awareness of the benefits of electronic payment as Filipino Millennials perceive that with an electronic payment card, they may be mischarged or not be able to use their cards at shops," the study said.
Seven in 10 Filipinos have a disciplined approach when it comes to money. Some 89% of Filipinos relied on parental advice and Internet (41%) for financial advice.
One in 2 Filipino Millennials said they can't live without their PC/laptops, while 37% said a smartphone is a "must-have."
Young Pinoys use instant messaging on computers (73%), as well as social networking sites (71%).
The study also showed Filipnos set aside 12% of their disposable income for electronic gadgets.
"Filipino Millennials embrace innovation and are curious about the world, connecting with their personal networks online and through their mobile phones. That’s why Visa believes in the power of electronic payments, and we are committed to bringing more people in the Philippines into the financial mainstream," Jamieson said, citing products such as Visa Debit and Prepaid cards.
Filipinos use online shopping the least among Asians. Around 72% of Filipino Millennials have tried online shopping once. But only a small percentage shop online at least once a month, paling in comparison to South Korea, where 99% go online to shop.
For online purchases, they use credit cards (26%), cash on delivery (13%), or debit cards (10%).
The Connecting with the Millennials study features interviews with 500 young urban Filipinos who belong to higher income groups.