With the contribution of the e-commerce industry to the local economy expected to increase by 50% by 2022, GCash, the leading digital wallet in the Philippines, vowed to support the government’s initiatives to provide the needed mechanisms and technology to spur and promote online shopping in the country.
Based on the research group Statista’s report, the e-commerce sector is expected to grow to a $1.32 billion industry, a 58% jump from $835 million in 2018. As such the Department of Trade and Industry (DTI) believes that the industry’s contribution to the country’s gross domestic product (GDP) will likewise be increased by half.
Digital wallets like GCash are expected to account for the lion’s share of the payments type at 39% after three years. This will be followed by bank transfers at 31%, card payments at 28%, and cash on delivery at 2%.
Currently, e-wallets only account for 21% of the transaction, with cards, cash-on-delivery, and bank transfers taking the top three places for payment options.
With the expected surge in users and usage, GCash is gearing up to lead the charge for the development of the e-commerce space by providing Filipinos with a digital wallet, which they can use for online transactions.
“We at GCash believe that the e-commerce industry will help fuel the Philippine economy, just like how it has been helping Indonesia grow its local output. With our secure and reliable payments platform GCash, we will be able to help drive the projected growth rates and aid in shaping the future of the country,” GCash President Anthony Thomas said.
GCash has been a strong government partner in promoting digital transactions in the country for many years now. With their GCash wallets, consumers are able to pay for their online shopping trips in just a few steps.
It has partnered with Lazada, the leading e-commerce platform in the Philippines, to provide Filipinos with a more convenient way of paying for their purchases. Users simply have to link their GCash accounts to their Lazada profiles, select GCash as their payment option, and check out.
“We are always open to partnering with e-commerce platforms to help the government achieve its goal of increasing the contribution of the e-commerce industry by 2022,” Thomas said.
Aside from this, GCash has also empowered micro, small and medium enterprises (MSMEs) as well as social sellers to expand their payment options and give their customers a better, more convenient way of paying for their purchases.
With the trade agency expecting 100,000 MSMEs going digital in the next three years, GCash will continue to bridge Filipino merchants and consumers and bring them closer through one digital finance app.
“As a strong government partner, we will continue to improve our products and services to achieve our two-pronged goal — enabling the financially underserved and create a cashless culture in the Philippines,” Thomas said.