MANILA – Streaming, ride-hailing and other app-based services are luring Filipinos to pay cashless, Visa said Thursday, citing its own survey.
Interest in the use of credit cards for payment rose to 75 percent in 2018 from 47 percent in the previous year, based on Visa's Consumer Payments Attitudes Study with 500 respondents.
However, those who said they use contactless or tap to pay was unchanged at 27 percent. The study showed 82 percent of respondents said they were aware of contactless payments.
"We see technology as an enabler of cashless payments, so Visa oftentimes is referred to as the original fintech (financial technology)," said Dan Wolbert, Visa country manger for Philippines and Guam.
"When we think of stuff as streaming, ride-hailing they’re all technology driven and it has totally shifted how consumers pay and consume," he said.
Partnerships with online and brick and mortar stores to offer tap to pay and cashless payments help drive growth, he said. Visa partnered with both SM Supermalls and Robinsons Malls.
"So even though more Filipinos are still more cash-based now, with a lot of activities relating to contactless, merchant integration, payment experience and use-cases that’s where we anticipate there will be a shift in their mindset so that it will be more second nature to use electronic payments," he said.
Electronic payments for transportation services can drive Visa’s growth as 9 in 10 Filipinos "generally support" the idea of using cashless payments for jeepney, buses, trains and taxi fares, the study showed. At least half of the respondents think it is more convenient to pay using credit card or debit card for transport fares.
Due to existing e-commerce and subscription services, the frequency of respondents using mobile payments at least once a week via apps rose to 56 percent in 2018 from 41 percent in 2017, the study showed.
Visa also considers e-money wallets such as Coins.ph, Gcash and PayMaya as complementary to its business as most of them serve as channels for wider access of its services, Wolbert said.