51% of Women-Led SMEs Surveyed In The Philippines Experience Increased Revenue After Accepting Digital Payments
Visa, a global leader in digital
payments, conducted a survey on small and medium-sized businesses
(SMEs) in the Philippines. Findings show that 51% of women-led SMEs and 56% of
micro-businesses experienced revenue growth with digital payments adoption.
Given women constitute over half of Asia's population and SMEs' vital role in
the economy, maximizing women's economic potential could add $89
billion annually to the Asia Pacific economy including in the
Philippines.
SMEs are crucial for
economic growth in the Philippines, with more than
a million Micro, Small, and Medium Enterprises (MSMEs) in the
country. The Philippines’ Department of Trade and Industry data show
that 99.5% of businesses in the country are MSMEs with almost 50% of them in
wholesale and retail trade, generating 65% of total employment. Furthermore,
the Asian Development Bank estimated that MSMEs contribute around 36% of the
country’s GDP.
The Visa study found that managing businesses has
become easier for 72% of the surveyed SMEs in the Philippines. Wallets,
predominantly GCash, dominate as the main provider of digital payment for SMEs,
especially those that are female-led (61%) who were surveyed in the
Philippines. Visa has partnered with GCash to introduce the new GCash
Card
– giving millions of unbanked Filipinos access to the benefits of owning a
payment card.
Among the businesses that have started accepting digital payments, those accepting cards witnessed the most significant turnover increases (83%). Digital payments provide instant transfers and enable cashless transactions for an enhanced commerce experience. Visa supports SMEs in the Philippines by offering widespread acceptance and robust protection for both merchants and customers, guarding against fraudulent activities.
Guaya
Melgar, CEO and Co-Founder of Mochi, a billing and collections platform, said: “My
business has grown since I introduced digital payment methods. I appreciate the
convenience, speed, and the ability to easily track payment records. It
provides my customers with a convenient cashless payment option too. I hope to
expand my business beyond the Philippines so enabling cross-border payments
will help me grow my customer base.”
"Small and medium-sized businesses are the driving
force behind the thriving economy in the Philippines. Visa is proud to
contribute to their growth by providing secure and convenient digital payment
solutions,” said Jeff Navarro,
Visa’s Country Manager for the Philippines. “Visa is
committed to continuously supporting the Philippine government’s financial
inclusion and digitization goals, including empowering SMEs, the cornerstone of
the economy, by introducing innovative financial and payment solutions so they
can build on this foundation to grow their business.”
Visa recently launched a SME online
toolkit
to enable tourism merchants to maximize the benefits of contactless payments.
In 2023, Visa launched the SME Accelerator Program in the Philippines to
support SMEs and partners through competitive pricing, faster onboarding, and
comprehensive take-to-market support. The expanded SME Accelerator initiatives
will also focus on a wider set of partnerships with ecosystem participants to
serve smaller sellers and fast-track solutions deployment for SMEs.
The Visa Foundation has also pledged
$100 million over five years to accelerate access for underrepresented
and women-led SMEs in APEC economies, including in the Philippines. Of the
nearly 67 million SMEs reached by Visa globally, approximately 29.6 million are
from APEC economies, with 10.9 million being women-led SMEs.
Among the businesses that have started accepting digital payments, those accepting cards witnessed the most significant turnover increases (83%). Digital payments provide instant transfers and enable cashless transactions for an enhanced commerce experience. Visa supports SMEs in the Philippines by offering widespread acceptance and robust protection for both merchants and customers, guarding against fraudulent activities.
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