The latest report by ACI Worldwide, real-time electronic payment and banking solutions provider, shows that real-time payment transactions in the Philippines saw a 24% year-on-year increase in 2023. The report also highlighted that transaction volume reached 777 million.
According to the ACI report, conducted in partnership with GlobalData, this growth is projected to continue with expectations of hitting 1.54 billion transactions by 2028.
Real-time payments, which involve the immediate transfer of funds to the recipient’s account 24/7, accounted for 47.2% of all digital payments in the country in 2023, amounting to $89.5 billion in transaction value.
The report projects that by 2028, real-time payments will constitute 58.7% of all digital payments in the Philippines, with a transaction value of $209.6 billion. The introduction of InstaPay in 2018 and the launch of QR Ph in 2019 have significantly contributed to this growth, providing faster and more convenient payment options for consumers.
“Real-time payments hold the potential to facilitate greater economic growth and financial inclusion in the Philippines by eliminating payment friction and injecting greater liquidity in the financial system,” said Leslie Choo, SVP and managing director, Apac, ACI Worldwide.
Mobile wallets
Choo encouraged local banks and financial institutions to adopt technological innovations to maximize the benefits of real-time transactions.
The shift toward digital payments, accelerated by the COVID-19 pandemic, has been driven by consumer demand for faster, simpler, and more secure transactions. The report highlights a strong correlation between real-time payment growth and mobile wallet adoption, with the Philippines ranking fifth globally in mobile wallet usage. QR codes, mobile wallets, and bank accounts are the primary methods used for real-time payments by Filipino consumers.
The Bangko Sentral ng Pilipinas (BSP) plans to join the Regional Payment Connectivity initiative, aiming to link all Asean countries under a single QR code-based system. This move aligns with the BSP’s broader strategy to promote financial inclusivity and digital payment adoption, potentially reducing remittance costs and stimulating economic growth.
Globally, ACI Worldwide supports 26 domestic and pan-regional real-time payment schemes, providing solutions to central banks, participant banks, fintechs, and other payment service providers.