Digital payments have surpassed cash transactions in Philippine retail, the Bangko Sentral ng Pilipinas (BSP) said, indicating a significant shift in consumer behavior.
The 2024 Report on the Status of Digital Payments in the Philippines showed that the share of digital payments in total monthly retail transactions reached 57.4 percent by volume and 59.0 percent by value. These figures represent an increase from 52.8 percent and 55.3 percent, respectively, in 2023.
The BSP this steady year-on-year growth reinforces the momentum gained after exceeding the 2023 digitalization target of 50 percent for volume.
“The upward trajectory reflects the long-term impact of market developments, policy initiatives, and the growing trust and familiarity of Filipinos with digital payment options,” the BSP said in a statement.
Merchant payments, person-to-person (P2P) transfers and business-to-business (B2B) supplier payments continue to be the main drivers of this growth.
Merchant payments accounted for 66.4 percent of the monthly digital payment volume, while P2P transfers and B2B supplier payments made up 20.6 percent and 6.2 percent, respectively. Collectively, these three categories represented 93.2 percent of the total digital transaction volume.
These findings align with the BSP’s Consumer Expectation Survey (CES) for the fourth quarter of 2024, which showed an increasing number of consumers using digital payments for e-commerce purchases, bill payments, and electronic fund transfers.
The number of merchants accepting QR Ph, the country’s standardized QR code payment solution, also grew by 148.7 percent year-on-year in 2024.
BSP Governor Eli Remolona reiterated the central bank’s commitment to leveraging technology for financial inclusion.
“The BSP continues to pursue its vision of harnessing technology and finance not only to connect markets but also to ensure that every Filipino becomes part of the formal financial system,” Remolona said.
“In this light, we aim to foster an environment that empowers our regulated entities and fintech partners to leverage innovation in designing financial products that are not only accessible but also more responsive to the needs of consumers,” he said.
The BSP’s strategy focuses on enhancing the payments ecosystem through interoperable systems, public-private partnerships, and the development of use cases that benefit all sectors. The expansion of the digital finance ecosystem aims to make transactions more accessible, affordable, and inclusive, particularly for microenterprises and underserved sectors.
The BSP cited its commitment to balancing innovation with consumer safety and trust as digitalization progresses. The central bank stated it remains dedicated to promoting a safe, efficient and inclusive payments system that supports innovation, strengthens financial resilience, and empowers Filipinos to participate more meaningfully in the digital economy.
