Why is Digital Payments popular in the Philippines?

For a developing country like the Philippines, with a population of over 119 million people, the rate at which digital payments are utilized is at an all-time high.

Basic bills, shopping, and tariffs can all easily be paid digitally from the comfort of one’s home without fuss, making residents of the 2nd largest Archipelago in the world an emerging digital payments hub.

It could be argued that prior to the infamous COVID-19 pandemic, the current digital payment saturation amongst citizens today wasn’t quite as popular and in high demand as it is now.

The pandemic prompted a need for the adaptation of contactless payments between consumers and businesses that prioritized security and hygiene. Join our expert finance author, exploring:

• The benefits of digital payments in modern-day Philippines

• The rise of cashless cities realizing the benefits of digital payments

• Digital payments benefits to online operators

The Rise of Digital Payments in Modern-Day Philippines 

Digital payments began growing in the Philippines in 2001 with the introduction of mobile money and e-wallets. But the surge in users among locals skyrocketed when the COVID pandemic struck a chord in reality. This accelerated the answer to the question posed by many non-users - what are the benefits of digital payments?

Due to its convenience and speed, digital payments have become quite popular among Filipinos over recent years for sorting payments, particularly among younger generations.

The rise of e-commerce has also necessitated the need for safe and secure digital payment platforms, breaching the gap between consumers and businesses through the ease of a mobile device.

Already, major changes have come with the Philippine Central Bank and the government pioneering an initiative like the Digital Payment Transformation Roadmap 2020-2023, which aimed at improving digital infrastructure, providing financial services, and implementing the use of AI. 

“Our thrust to promote digitalization of payments is also strategically geared towards furthering financial inclusion as we view the two to be mutually reinforcing: they go hand in hand, with each one enabling the other,” said Benjamin Diokno, the former of the Bangko Sentral ng Pilipinas.

He further stated “With the launch of the Digital Payments Transformation Roadmap, we aim to hit two birds with one stone. We are securing the digitization of payments, and increasing the number of Filipinos with access to financial services.” 

Thankfully, the initiative achieved its goal of digitizing 50% of retail transactions and onboarding 70% of Filipino adults into the financial system by the end of 2023.

The Digital Payments Benefits for Online Philippine Casinos

With the ever-increasing rise of digital payments nationwide, online Philippine casinos have benefited majorly, with users seamlessly processing payments digitally from the comfort of their devices.

Online casinos in the Philippines have breached the physical gap between them and potential players, thanks to digital payments serving as a means of authenticating and receiving funds virtually.

For Philippine gamers, finding the best casinos with exciting promotions and a competitive catalog of gaming options is one thing. However, finding operators who have understood the digital payment benefits and have adapted accordingly is an entirely different question.

To avoid the hassle of funding accounts and receiving payouts from casinos in the Philippines, players should consider using only operators who have adopted the most popular digital payment methods in the country, like GCash. For instance, the best legit online casino Philippines GCash, selected on the reviews site, guarantees you not only an unmatched gaming experience but also ensures that deposits and withdrawals are swift and secure without charging hefty fees.

Filipinos Building A Reputation As a Hub For Digital Payments

The growth of cashless cities realizing the benefits of digital payments in the Philippines has taken massive leaps in recent years, with the number of digital wallet accounts increasing from 257.5 million in 2022 to 393.6 million in 2023.

This exponential rise in figures is the outcome of the Philippines Central Bank, Bangko Sentral ng Pilipinas (BSP) digital transformation roadmap, initiated to make the Philippines a cash-lite economy by digitizing financial services.

The issuance of digital bank licenses and the development of the National QR code have all been implemented by the BSP to accelerate the creation of e-money accounts and facilitate digital P2P and P2M payments among consumers. There is even an ongoing debate amongst Philippine citizens as to which online digital payment methods are the best, indicating the widespread acceptance of digital payment benefits in the country.

Home to the largest population in Southeast Asia, the Pearl of the Orient boasts a skilled workforce with fluent English speakers, making the country ideal for outsourcing operations and call centers. 

Fact: The Philippine digital economy surged to $35.4 billion in 2023, contributing 8.4% to the country’s GDP.