Filipinos without a debit or credit card may now shop online with Smart Communications, Inc.’s MePay, a locally-developed payment platform that only requires any Philippine mobile phone number for the sign-up process.
Developed by Smart’s money service, Smart e-Money, Inc., MePay can be funded through direct transfers from Smart Money accounts or through any of the 30,000 Smart Money Padala centers nationwide.
To set up a MePay account, users only need to go to www.MePay.ph, enter any Philippine-based mobile number, and fill up the short registration form. A verification code will be sent to their mobile number to activate the account, after which they can immediately begin using their MePay accoutns for online shopping.
Kenneth Palacios, Department Head/Vice President International Platforms at SMI told UpgradeMag.com that MePay allows the “unbanked and uncarded” shoppers in emerging markets to participate in e-commerce. He stressed that MePay is different from PayPal because it doesn’t link to a credit or debit card. “MePay is really for those who don’t have a bank account or a credit card. So it’s perfect for emerging markets,” he said.
The Philippines scores low in a global e-commerce readiness index, ranking 47 out of 50 countries included in the Digital Evolution Index released by MasterCard and The Fletcher School at Tufts University.
Of the more than 98 million Filipinos, only 37% are Internet users and 38.7% are smartphone users. The country also has a low credit card penetration of 3%.
While the Philippines scores low, it’s digital economy is rapidly evolving. The Philippines demonstrated an overall improvement in Digital Evolution score of almost 20% from 2008-2013. The study says that if the country sustains its evolution rate, it will emerge as a strong digital economy, but the Index shows that the next phase of growth may be harder to achieve.
“Since many Filipinos do not have a bank account or have yet to own a credit card, e-commerce has not flourished in the country as much as everybody expected,” said Lawrence Ferrer, head for product marketing management at SMI.
The first online shop to accept MePay is lifestyle portal Zalora, a Rocket Internet company operating in the Philippines. The partnership is part of the series of collaborations with the global Internet firm following PLDT’s strategic investment in the company back in August.
According to Martin Cu, marketing director, Zalora Philippines, MePay fills a clear need on Zalora by enabling the uncarded to shop online. Cu told members of the media that only 25% of purchases at Zalora are paid with a credit card. A majority or 70% of purchases are paid cash-on-delivery (70%).
In a brief chat with UpgradeMag.com, Cu said they hope that a majority of the 70% who pay COD will eventually embrace MePay. He noted that the payment method ensures that payment will really be made by the buyer, especially for big amounts.
As part of MePay’s launch, Zalora is offering 25% off for shoppers if they checkout using MePay during this Christmas season.
To set up a MePay account, users only need to go to www.MePay.ph, enter any Philippine-based mobile number, and fill up the short registration form. A verification code will be sent to their mobile number to activate the account, after which they can immediately begin using their MePay accoutns for online shopping.
For security, MePay users will receive an SMS notification each time they do something with their account, such as when topping up or when using it to pay at e-commerce sites.
MePay allows the unbanked and uncarded shoppers in emerging markets to participate in e-commerce,
says Kenneth Palacios, Department Head/Vice President International Platforms at SMI
MePay is currently accessible via a web browser. A mobile app version will be launched in the first quarter of next year.
SMI is aggressively rolling out the MePay platform across more online merchants in the Philippines, as well as activiating the ability to add more fund sources in the months to come. The company also plans to introduce MePay to other emerging markets.
