#digital payment innovations

The BSP's move comes as part of its broader efforts to encourage Filipinos to adopt digital payment methods and reduce reliance on cash. The BSP has already seen significant progress in this area, with the share of digital payments in total retail transactions increasing to 52.8% in 2023 from 42.1% in 2022. The company said QR Ph and e-wallets combined represented 76% of total payment volume and 9 in 10 transactions on its platform, pointing to continued growth in mobile-first digital payments among Philippine businesses. The company said this setup helps simplify digital payment acceptance for merchants, especially smaller businesses. The report also pointed to continued adoption of digital payment tools among merchants without dedicated technical teams. PayMongo said the figures reflect broader momentum in digital commerce in the Philippines, as more businesses adopt digital payment channels across online and physical retail. The central bank also emphasized that digital payment fees are expected to be lower than charges for manual or over-the-counter transactions because electronic channels are generally more efficient and cost-effective to operate. The BSP said the new framework supports its broader goal of promoting digital payments, financial inclusion, and innovation while ensuring adequate consumer protection and regulatory oversight. Read more in our articles including "BSP eyes zero-fee electronic fund transfers, payments to MSMEs" and "QR Ph now leads digital payments in the Philippines".