50% of retail transactions seen online by 2022
MANILA, Philippines – At least half of total retail transactions will be online as early as next year or a year ahead of Bangko Sentral ng Pilipinas (BSP) 2023 target as the regulator continues to step up efforts to transform the Philippines into a cash-lite of a cash-heavy economy.
At the Asia-Pacific virtual summit hosted by the Washington-based Institute of International Finance, BSP Governor Benjamin Diokno said the goal set by the central bank as part of its three-year roadmap for transformation of digital payments could be achieved by next year. “Before the end of 2022, we will achieve these goals,” Diokno said.
The BSP launched the National Retail Payment System (NRPS) in December 2015 to modernize the country’s retail payments.
It also aimed to increase the share of digital payments in total retail transactions to 20% by 2020, from just 1% in volume and 8% in value in 2013.
The central bank has also embarked on a roadmap for the transformation of digital payments to convert 50% of retail transactions in the country to electronic transactions by 2023.
As a result, data from the Better Than Cash Alliance (BTCA) showed a steady increase in the share of digital payments in total retail transactions, rising to 14% in 2019 from 10% in 2018 in terms of volume and to 24% of 20 percent in terms of value.
With the COVID-19 pandemic serving as a catalyst for the increased adoption of digital payment by consumers and merchants, the BTCA reported that the share of electronic payments increased further to 17% from the first half of 2020 in terms of volume and at 25% in terms of value.
Based on data released yesterday by the BSP, electronic funds transfers via PESONet and InstaPay surged in April as the central bank continues to encourage the public to use electronic means of payment to conduct secure financial transactions. in the midst of the health crisis.
PESONet and InstaPay are two automated clearing houses under the NRPS. PESONet is a batch electronic funds transfer (EFT) serving as an electronic alternative to the paper-based check system, while InstaPay is a real-time, low-value electronic funds transfer for transactions up to a value of 50,000. pesos and is useful for e-commerce.
The value of PESONet transactions jumped 87.5% to 328.7 billion pesos in April, from 175.3 billion pesos in the same month last year, as the volume tripled to 5.53 million transactions against 1.08 million.
From January to April, the value of PESONet transactions more than doubled to 1.28 trillion pesos, from 590.3 billion pesos in the same period last year, as the volume more than quadrupled to 21 , 78 million against 4.6 million.
Likewise, the value of InstaPay transactions reached 198.8 billion pesos in April, 3.5 times the 57.3 billion pesos recorded in the same month last year, with the volume almost tripling to 34.58 million. transactions, against 9.6 million.
From January to April, the value of InstaPay transactions nearly quadrupled to 716.1 billion pesos, from 183.1 billion pesos in the same period last year, as the volume more than quadrupled to 125, 4 million transactions, compared to 28.92 million.
BSP said 82 BSP-supervised financial institutions (BSFI) were participating in PESONet and 52 in InstaPay at the end of April.
“The data is encouraging. These indicate the sustained adoption of digital payments in the country. Consumers’ preference for the security of their financial transactions, coupled with BSFI’s drive to offer safe, convenient and affordable digital payment choices, will continue to support the widespread use of digital payments, ”BSP said.
In addition, the volume and value of person-to-person (P2P) QR Ph payments in April increased by 23% and 38%, respectively.
A turning point in the country’s digital transformation journey, the National QR Code Standard or QR Ph is based on the efficiency, security and accessibility of QR technology.
“New users have seen the benefits of going digital first-hand. Their positive experiences are expected to create a ripple effect and promote wider use of digital payments, ”BSP said.