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UnaCash: QR code payments in PH to reach P250 trillion in 2023

UnaCash, an all-digital cash loan application, expects the volume of payments to grow up to a P200 trillion-P250 trillion (or around $3.5-4.5 billion) in 2023 through a standardized use of QR Ph.

According to UnaCash, the forecast follows the data based on the volume of transactions through the QR Ph system for the first quarter of 2023, and which amounted to approximately P32.7 billion. 

“This represents a 22.8% increase compared to the previous quarter and a significant rise of 159.8% compared to the same period in 2022 in US dollars,” UnaCash said in a media release. “Based on the national currency, the growth is at 18.8% compared to the previous quarter and 177% in comparison to the same period the year prior.”

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The analysis for this data is based on the transaction volumes of QR Ph by connecting available data, including a power function representing its trends, multiplied by the seasonal coefficients aimed to generate accurate forecasts.

Financial transactions

QR Ph was designed to introduce a mass system of QR codes that can be generated by any bank or non-banking Electronic Money Issuers (EMI) certified by the Bangko Sentral ng Pilipinas (BSP) to facilitate customer requests for funds and transfers of payments. This was developed to expand digital payments to all segments of the population, increasing the liquidity of the Philippine banking system. 

“QR Ph will optimize the payment transfer process between our existing and future partner sellers, achieving seamless transactions,” said Aleksei Kosenko, the president and CEO of UnaCash.

To standardize QR codes used by certified payment service providers (PSPs), BSP mandated memorandum No. M-2023-005 to banks and financial institutions to fully implement QR Ph by July 1, 2023, as part of a national objective to expedite the process of digitalization in the country, as outlined in their Digital Transformation Roadmap 2020-2023. 

“UnaCash, which aims to develop services to upgrade customers’ lifestyles suited to their respective budgets and interests, supports the QR Ph system in its contribution to the full standardization of payment processes in the Philippines,” the company said.

UnaCash service

Its service, UnaCash Buy Now, Pay Later, recognizes the potential of QR Ph as it will provide convenient and seamless payment methods for customers, offer faster settlement time, and can go as far as tapping a growing market of consumers who would prefer digital payment solutions in the Philippines.

The anticipated transaction volume through person-to-person (P2P) digital transfers and person-to-merchant (P2M) payments based on the national payment system InstaPay is expected to reach a staggering approximate P1.309 trillion.

QR Ph as main growth driver for InstaPay in 2023

With the expected transaction volume, UnaCash observes that the QR Ph system serves the main growth driver for InstaPay in 2023. At present, there are 38 P2P QR Ph providers, accounting for 15.3% of all payment system operators alongside 27 PM QR Ph providers which make up 11.3% in total. The second half of 2023 holds the potential to double to 76 (30.6%) P2P providers and 52 (21.8%) P2M QR Ph providers.

“As a result, the use of payments through the QR Ph system is gaining momentum as an alternative to traditional debit and credit card payments,” UnaCash said. “Its inherent advantages over these payment methods include the simplicity, convenience, and security of simply scanning a QR code. Services similar to UnaCash recognize the value that this may potentially bring to businesses in the country.” 

As a part of its system upgrades, UnaCash will implement the use of QR codes for direct processing of application of point-of-sale loans through its partner merchants in the coming year. The payment process will also become more convenient and effortless, as it will remain readily accessible through InstaPay.

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