The cashless wave continues to gain momentum
in the Philippines as consumer habits shift away from cash dependence, and more
towards usage of cashless payments. This is according to Visa’s latest Consumer
Payment Attitudes Study, which indicates a notable decline in cash usage to
87%, from 96% in 2022.
The Visa Consumer Payment Attitudes Study is
an annual study covering payment behaviors of Filipino consumers when it comes
to digital payments, digital banking and the future of commerce. The latest
edition is in its 10th year running and was based on interviews
conducted in October to November 2023 with 1,000 Filipino consumers aged 18-65
years old, spread across different cities/regions and income brackets, with the
minimum monthly income being PHP 12,000. 
Driven by the younger (Gen Z and Gen Y) and
more affluent segments, Filipino consumers are increasingly embracing cashless
transactions, going without cash for an average of 10 days. Specifically, card
payments usage was at 70% (including swipe / insert, online, and tap-to-pay /
contactless payments) in 2023, while mobile wallets usage stood at 87%, on par
with cash transactions.
43% of Filipinos who were surveyed now carry
less cash in their wallets mainly due to the growing consumer habit of using cashless
and contactless payments, alongside the increasing acceptance of cashless
payments among stores & merchants.
Supermarkets (88%), food and dining (86%), and
bill payments (82%) are the leading merchant categories that consumers observed
to have opened up acceptance of cashless payment methods compared to a year
ago.
“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 Jeff Navarro, 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.”
Growing acceptance and usage of contactless payments
among Filipinos
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 59-65 (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.
Road to a cashless society
With the shift to digital forms of payment,
52% of consumers are confident to go without the use of cash, and rely on
cashless payment methods entirely for at least a week. Moreover, 1 in 3
consumers (37%) believe that the
Philippines will be a cashless society by the year 2030 – if not sooner.
“Our study shows that the cashless wave is
maintaining its momentum in the Philippines. We are moving closer to achieving
a cashless Philippine society, but we still have some way to go,” said Navarro. “Visa plays a strategic role
in the payment ecosystem to drive financial and digital inclusion by partnering
with the government, banks and financial institutions, and fintechs to support
the development of digital payments in the Philippines. We are supporting the
digitization journey in the Philippines – such as Bangko Sentral ng Pilipinas’
Digital Payments Transformation Roadmap – by providing consumers and businesses
with convenient, seamless and safe digital payment solutions.”
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