Gov't hits target to digitize 50% of retail payments

By Komfie Manalo

The Bangko Sentral ng Pilipinas said digital transactions to total monthly retail payments expanded from 42.1% in 2022 to 52.8% in 2023, surpassing its target to digitize 50% of digital payments volume under the Digital Payments Transformation Roadmap 2018-2023.

According to the BSP 2023 Report on E-Payments Measurement, the latest e-payments measurement also showed that the share of monthly digital payments in total transactions increased to 55.3% in 2023 from 40.1% in 2022 in terms of value.

"We take pride in this achievement as proof that our pursuit of a cash-lite economy has consistently progressed. We owe this to our citizens, who are the foremost beneficiaries of a safe, efficient, and inclusive digital payment system. As we serve their payment needs and deepen financial inclusion, we are ready to bring digital finance to new heights," said BSP Governor Eli M. Remolona.

The main contributors to the rise in e-payments were merchant payments, which accounted for 64.9% of monthly digital payments volume; person-to-person transfers, 19.3%; and business-to-business supplier payments, 6.1%.

This is consistent with the growth in ownership of transaction accounts, mostly e-money accounts that are increasingly used for payments.

With the Philippines making significant strides in digital payments adoption, the Bangko Sentral ng Pilipinas, in collaboration with the payment industry, is well-positioned to drive further advancements. This strategic partnership is set to empower Filipino businesses and consumers, enabling them to play a more active role in the country's economic growth.

"We should not rest on our laurels. Achieving the target is not the end goal. We would like to see lives being transformed by our policies," underscored Governor Remolona.

As Governor Remolona envisions, the BSP's initiatives are aimed at transforming lives through digital payments. When Overseas Filipinos can conveniently send remittances at faster and cheaper rates, when businesses, especially micro, small, and medium enterprises, can accept e-payments and transact digitally, and when digital payments become the preferred mode for everyone – this is the realization of a safe, efficient, reliable, and inclusive payment system.