Cashless transactions are on the rise in the Philippines as more and more consumers adapt to digital payment means. This was according to the Visa’s latest Consumer Payment Attitudes Study which says that the use of cash for payment has decreased to 87% from 96% in 2022.
In the past, it’s always been cash that’s very dominant in terms of usage. But now, the use of mobile devices for payment, which rose to 87%, has already matched the level of cash. The use of cards, whether it is swiped or tapped in a terminal, has likewise increased to 70%. These payment innovations are driving the shift to cashless payments.
The annual Visa Consumer Payment Attitudes Study provides insights into consumer payment behaviors in key markets, including the Philippines. The latest survey, conducted from October to November 2023, interviewed 1,000 Filipino consumers aged 18 to 65 years old, spread across different cities/regions and income brackets, with minimum monthly income of PhP 12,000.
The study found that customers are trying to be cashless as their confidence to go cashless is increasing, with 83% said they have tried to go cashless. This was driven by younger age group, Gen Z and Gen Y, (at 87% and 86%, respectively), and even the affluent segments. In terms of those who went into cashless and try to live without the use of cash, they survive without cash for an average of 10 days. Additionally, the study says 1 in 3 consumers (or 37%) believe the Philippines will be a cashless society by the year 2030.
Representing 43%, these Filipino consumers said they carry less cash in their wallet due to the growing consumer habit of using cashless and contactless payments, alongside the increasing acceptance of cashless payments among stores and merchants. Supermarkets (88%), food and dining (86%), and bills payment (82%) are merchant-stores customers believe to have more cashless facilities for accepting payments.
The study also seen an increase in the number of merchant-stores that support mobile wallets, with 87% said they have seen an increase in acceptance for mobile wallets. Besides, 63% have seen an increase in card acceptance through swiping, and 52% believe and have seen an increase for contactless.
“Filipinos are becoming more comfortable with cashless payments, and we are confident that they will continue to embrace new innovations in the digital payment landscape,” says JeffNavarro, Visa country manager for the Philippines. “With growth attributed to increasing payment acceptance across merchants for cards, both dip and contactless, as well as mobile wallets, Visa remains committed to ensuring a seamless transition to a cash-lite society by providing secure and convenient digital payment solutions.”
Contactless payments – including contactless cards, QR codes, and mobile wallets – are driving the growth of cashless payments in the country. According to the study, about 9 in 10 Filipinos are aware of and interested in using contactless cards and QR codes when paying for their transactions. Specifically, 32% of Filipinos used contactless cards for their payments in 2023, mainly driven by the affluent population. Meanwhile, 55% used QR codes, with at least 50% adoption across age groups except for consumers aged 59 to 65 (31%).
Among mobile wallet users, paying through QR codes is the most preferred method for 38% of consumers, making mobile wallets the most preferred funding source for QR payments. Scanning the QR code in-store is the preferred mode of payment by 78% of its users.
When travelling overseas, Filipinos prefer to use cards for cross-border payments, where 55% of consumers prefer debit and credit cards for the convenience, time savings, and hassle-free user experience. An emerging trend is the use of QR codes for cross-border payments, with 37% of Filipinos currently aware of and have tried using it. Meanwhile, 69% of those who have not tried it have expressed interest in using it in the future.
