Visa, a global leader in digital payments technology, recently released its latest Visa Consumer Payment Attitudes Study in the Philippines. The study reveals that Filipino consumers are increasingly turning to cashless and contactless payment options, such as mobile wallets and cards, highlighting the growing adoption of secure and seamless digital payment solutions in the country.
Despite cash remaining a popular payment method in Southeast Asia, Filipinos are showing a growing interest in reducing their reliance on cash. The study found that a significant majority of Filipinos, 82%, attempted to go cashless in 2022. Of those who tried, 40% succeeded in going cashless for a few days, while 9% were able to go cashless for over a month. This reflects a decline in the frequency of cash payments, which dropped from 7.8 for every 10 purchases in 2021 to 6.4 in 2022. These findings suggest that Filipinos are eagerly embracing the convenience and security of cashless payment options, such as mobile wallets and cards.
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Growing Awareness and Adoption of Contactless Payments
The study also highlights that the awareness and interest of Filipinos in contactless card payments are high, with 93% showing interest and 90% being aware of this payment method. However, usage remains low at 37%, but Visa is confident that this will grow in the coming years. Meanwhile, QR code usage in the Philippines has seen remarkable growth, rising from 36% in 2021 to 53% in 2022, led by the Affluent and Gen Z segments. Cambodia has the highest usage of QR codes as payment, while Singapore is ranked number one for cardless payments, and the Philippines is ranked number five.
One of the significant drivers of the growth in cashless and contactless payments is the modernization of transportation. More Filipinos are opting for contactless transit cards to pay for their commute, with the adoption of such cards increasing to 73%.
However, the study also reveals some barriers to going cashless, such as the inconsistency of internet connectivity, which affects payment and money trust. Acceptance points are also a hindrance, as only 50% of merchants have accepted cashless payment methods. Half of the respondents still believe that cash payments could be fraudulent, highlighting the need for education on the benefits and security of cashless payments.
Visa’s Country Manager for the Philippines and Guam, Jeffrey Navarro, has ranked bills payment as the first area to transition to cashless payments, followed by grocery, supermarket, and convenience stores, as well as international travel. This shift to cashless payments is expected to enhance the convenience and security of financial transactions for Filipinos, especially when traveling abroad. With the rapid growth of digital payments in the Philippines, Navarro’s predictions are not just optimistic, but also exciting, paving the way for a future where cash is no longer king.
Importance of Education for Responsible Growth in Cashless Payments
Jeffrey Navarro recognizes the importance of education in ensuring responsible growth in the adoption of cashless payments. The study reveals that while awareness and interest in cashless payment options are high, many Filipinos still have concerns about the security and reliability of these payment methods. To address these concerns and encourage the responsible adoption of digital payments, it is crucial to provide education and awareness on the benefits and security of digital payments.
Education can help to create a more informed and empowered consumer base, which in turn can drive responsible growth in the adoption of digital payments. By educating Filipinos on the benefits and security of digital payments, we can overcome the barriers to adoption and create a more convenient, secure, and efficient payment system.
Conclusion
Despite these challenges, the growing adoption of cashless and contactless payments in the Philippines is a positive sign of the country’s readiness to embrace secure and seamless digital payment solutions. As technology continues to advance and more Filipinos become aware of the benefits of cashless payments, we can expect to see a further shift towards a cashless society in the years to come. With the modernization of transportation and the increasing adoption of alternative payment methods, the Philippines is well on its way to becoming a cashless society. As Visa and its partners work towards providing secure and seamless digital payment solutions, it is crucial to continue educating Filipinos on the benefits and security of cashless payments.
