Filipinos are embracing cashless payments – Visa Study
Although cash is still primarily the preferred method of payment, more Filipinos are embracing cashless payments based on the findings from the latest Visa Consumer Payment Attitudes study.1 This is the fifth edition of the Consumer Payment Attitudes Study conducted on 3,000 individuals across eight markets in Southeast Asia.
Findings from the study highlighted that 75 per cent of respondents plan on using more card payments instead of cash.2 In addition, two out of three respondents in the Philippines tried going cashless and close to 60 per cent have gone cashless for at least a few days.3 Top benefits cited by respondents on why they use cashless payments include increased convenience, hassle-free and not carrying as much cash.
"It is heartening to know that more Filipinos are seeing the benefits of using digital payments based on the findings from the study. Visa’s data also shows a similar trend, where we continue to see good double-digit growth in terms of spend and transactions made by Filipino cardholders.4 There is still a lot of opportunity for cash displacement in the Philippines and we continue to work on a few priorities in the Philippines such as grow digital payments usage in the country and expand merchant acceptance footprint for digital payments," said Dan Wolbert, Visa's Country Manager for the Philippines and Guam.
Contactless payments awareness and usage in the Philippines have also increased compared to 2017. The study showed that more than 80 per cent of respondents are aware of contactless card payments, an increase of 11 per cent compared to 2017.5 In addition, 84 per cent of respondents have also indicated that they are interested to use contactless payments.6
“We have seen strong growth in contactless payments in the Philippines, especially after partnerships with key merchants such as SM and Robinsons who have implemented contactless payments acceptance across their stores in the Philippines. Visa’s data show that contactless spend and number of transactions have increased triple digit year-on-year, and we will continue to engage more merchants and banks to promote the benefits of contactless payments,” added Dan.7
Transportation in the Philippines is a category where Filipinos are keen to use e-payments. Based on the study, almost nine out of 10 Filipinos are generally supportive of e-payments for transportation which includes jeepneys, buses, trains, taxis and private car hires. In fact, more than half of the respondents think it is more convenient to pay using credit or debit cards for their transportation fares.8
Beyond that, the research also shows how Filipinos are open to future technology to pay for their goods and services. Such technology leverages on card-on-file payments or digital payments. Six in 10 respondents express interest in using AI chatbots to order and make payments for their purchases.9 Ninety per cent of respondents are also interested to use self-service checkout kiosks instead of going to cashier counters, and 72 per cent of them prefer to use their payment cards, contactless payments or biometric payments.
1 Conducted in July 2018, the Visa Consumer Payment Attitude Survey has 500 Filipino participants whose monthly income is Php 12,000 and above. The study aims to understand the behaviors of digital consumers and their interest in using digital payments and new technology.
2 Consumer Payment Attitudes Study 2018, Philippines report
3 Consumer Payment Attitudes Study 2018, Philippines report
4 VisaNet data as of June 2019
5 Consumer Payment Attitudes Study 2018, Philippines report
6 Consumer Payment Attitudes Study 2018, Philippines report
7 VisaNet data as of June 2019
8 Consumer Payment Attitudes Study 2018, Philippines report
9 Consumer Payment Attitudes Study 2018, Philippines report
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit, or set rates and fees for consumers. Visa's innovations; however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit www.visa.com.ph