Visa, a global payments processing company, attributes the surge in cashless payments in the Philippines to the growing number of establishments and companies embracing emerging technology over cash transactions.
The latest Visa Consumer Payment Attitudes Study reveals that 43% of Filipino respondents now carry less cash due to the increasing preference for cashless and contactless payments, alongside the expanding acceptance of such methods by stores and merchants.
In 2022, 96% of respondents reported using cash, which decreased to 87% in 2023. Contactless payments, including contactless cards, QR codes, and mobile wallets, have been factors in this shift.
READ:
Visa sees increase in use of cashless payments in PH
Visa Study: APAC consumers prefer Tap to Phone digital payments
With the transition to digital payments, 52% of consumers express confidence in going entirely cashless for at least a week, highlighting a gradual cultural shift.
“We are making strides toward a cashless society in the Philippines, but there’s still progress to be made,” said Jeff Navarro, country manager for Visa in the Philippines.
Card payments
The convenience and accessibility of cashless transactions have led 37% of individuals to believe that the Philippines could achieve a cashless society by 2030 or even earlier.
In 2023, card payments accounted for 70% of transactions, encompassing swipe, online, and tap-to-pay methods, while mobile wallet usage reached 87%, paralleling cash transactions.
Mobile transactions
Among mobile wallet users, QR code payments are preferred by 38%, making mobile wallets the primary funding source for such transactions. In-store QR code scanning is favored by 78% of users.
When traveling abroad, Filipinos prefer using cards for cross-border payments, with 55% opting for debit and credit cards due to convenience, time savings, and a hassle-free user experience. QR codes for cross-border payments are gaining traction, with 37% currently aware of and willing to try this method.
Visa’s annual study delves into Filipino consumers’ payment behaviors regarding digital payments, digital banking, and the future of commerce. The latest edition, now in its 10th year, surveyed 1,000 consumers aged 18-65 from various cities, regions, and income brackets, with a minimum monthly income of P12,000, conducted from October to November 2023.