The latest publication from Germany-based market research firm yStats.com, “Top Mobile Payment Service Providers in the Philippines 2020 and Their Reaction to the COVID-19 Crisis” gives insights into mobile payment service providers’ activity in the Philippines. The publication reveals that even though the market is still in the phase of development, it is growing fast especially due to the COVID-19 health crisis and the restrictions imposed, and soon may become a strong competitor in the Southeast Asian region.
The Philippines online payment market is promising yet still developing during the health crisis
Worldwide, the online payment market surged after the onset of the coronavirus. However, consumers in the Philippines still heavily rely on cash, even when it comes to E-Commerce. According to figures cited in the new yStats.com report, about four in ten consumers in the country choose cash to pay for goods and services ordered online. Nevertheless, the market tends to the adoption of online and mobile payments, as the number of new E-Wallet accounts has risen sharply. This market characteristic prompted the government of the Philippines to introduce InstaPay and PESONet, electronic funds transfer services targeting different customer groups but serving one purpose – to satisfy the needs of the local market to conduct payments online.
COVID-19 restrictions gave rise to consumer adoption of online payments in the Philippines
As stated in a recent survey cited in the new yStats.com report, Internet users in the Philippines became significantly more open to digital payments, as almost nine-tenths stated that they noticed an increase in the use of digital payment platforms amid the COVID-19 health crisis, and a significant number opened a new account during the past several months. Additionally, the growth rate of real-time transaction volume in the Philippine outpaces the largest economies in the region.
During the coronavirus pandemic, local digital wallets in the Philippines are gaining momentum
The COVID-19 health crisis and the imposed restrictions accelerated the adoption of online payments in the Philippines so that the most popular E-Wallet in the country, GCash, could boost its user base by 30% in November 2020, compared to the end of 2019. Blockchain-based Coins PH, furthermore, has managed to double its user figures during the pandemic, as reported in the yStats.com publication. Additionally, in cooperation with the Government, PayMaya enabled contactless payments on public transport in the Philippines, to help curb the pandemic by reducing cash in circulation.