In the first quarter of 2024, the combined transaction value of PESONet and InstaPay in the Philippines reached P3.81 trillion, showing a 33% increase, a third more from the P2.87 trillion collected in the corresponding period the previous year, according to data from the Bangko Sentral ng Pilipinas (BSP). This rise indicates a significant uptake in digital payment methods among Filipinos.
The combined transaction volume for both these PESONet and InstaPay platforms also saw a substantial rise, with figures climbing 70% to 309.3 million transactions, up from 182.4 million in the early part of 2023. These figures suggest a shift in payment preferences among consumers and businesses towards more digitalised methods.
InstaPay is utilised for real-time, low-value digital payments, effectively replacing traditional cash transactions. Conversely, PESONet serves as a batch electronic funds transfer system, providing an alternative to cheque and recurring payments.
The infrastructure supporting these services has expanded, with InstaPay supported by 86 entities including a variety of banks and financial institutions, while PESONet’s network includes 109 entities.
The increasing shift to digital transactions aligns with the BSP’s strategic goals under its Digital Payments Transformation Roadmap and National Strategy for Financial Inclusion.
Deputy Governor Mamerto E. Tangonan remarked recently that the target to digitise half (50%) of all payment transactions by the end of 2023 appears to have been met, although the central bank is said to still be finalising the figures.
The momentum towards electronic payments in the Philippines has been notably influenced by the pandemic, which accelerated digital transaction methods as movement restrictions made traditional transactions less feasible. This shift is further demonstrated by the widespread adoption of the QR Ph code for payments.
A comprehensive report detailing these developments is expected to be released by the BSP in July, which will further outline the progression of digital payments within the national economy. This ongoing transition underscores a broader move towards more accessible and inclusive financial services in the Philippines.
Featured image credit: Edited from Freepik
