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Saturday, April 2, 2022

Cashless transactions, digital payments remain popular

THE GROWTH of digital payments in post-pandemic situations is expected to remain strong as more people realize the convenience it brings as well as the introduction of more innovative services, according to Dan Wolbert, Visa Country Manager for the Philippines and Guam.

 

He said the importance of cashless transactions and digital payments was appreciated during the pandemic, following the movement restrictions imposed to address the spread of the Covid-19. 

Initially, people used it to buy necessities following the community lockdowns, but later on utilized it for convenience, he said. “We anticipate this trend to continue and the consumer behavior not only will continue but will accelerate as more and more services and capabilities will bring and will make this type of transactions simpler and easier and more functional,” Wolbert said.  

Citing the results of Visa’s annual online Consumer Payments Attitudes Study last year, Wolbert said the survey showed that 60% of the 1,000 respondents from Cebu as well as Manila, Cavite, Rizal, and Bulacan, carried less cash in their wallets and that 84% tried going cashless.  

Wolbert said respondents prefer using mobile wallets, 64%; card payment online, 52%; card payment at physical merchants, 44%; and quick response (QR) payments, 31%. 

“While cash is still commonplace in the Philippines, the preference for cashless payments is clearly gaining momentum. Our study showed more Filipinos are confident to get by without cash and for longer periods of time -- with more than half feeling confident to get by for a week or longer, as cashless payment options grow,” he said.  

Wolbert said the rise of cashless payments in Asia is at varying levels and what is important in the Philippines, among other countries, is that the Bangko Sentral ng Pilipinas is pushing for further rise in digital payments transactions. He dubbed the private sector’s partnership with the central bank towards digital payments as “unifying and north star for the Philippines and stakeholders”.  

“So, we’re really focused on growing and aiming to achieve and we’re really focused on driving for more electroniication of payments,” he said, adding financial literacy and consumer education are important factors that will enhance people’s acceptance of this payment mode even after the pandemic.  

“The trend in e-commerce (electronic commerce) will continue to be sustained and face-to-face (transactions) will complement (it). We see continued opportunity for digital payments and furthering acceleration of adoption of digital payments,” he added. (Joann Villanueva)



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