In 2025, fintech remained the most active startup category in the Philippines, accounting for the largest share of deal volume, according to the 2026 Philippine Private Capital Report by Foxmont Capital Partners.

This dominance underscores the industry’s pivotal role in the country’s digital economy and reflects sustained confidence from the investment community.

Fintech adoption surges in the Philippines

Core fintech verticals including digital payments, digital lending, and online trading continue to demonstrate robust growth and market traction. In 2024, digital payments accounted for 59% of the total transaction value in the Philippines, representing a nearly threefold increase from 20% in 2018. Similarly, digital payments represented 57.4% of the total transaction volume, marking a 5.7-fold increase from 10% in 2018.

This growth reflects the continued shift towards digital payments in the Philippines and evolving customer preferences and behavior. It also puts the country well on track to reach the Bangko Sentral ng Pilipinas (BSP)’s goal of having digital payments account for 60-70% of total transaction volume and value by 2028.

Parallel to the surge in digital payments, the digital lending sector is also seeing significant expansion. In 2025, the digital loan book balance in the Philippines reached US$4.26 billion, representing a 11% increase from the US$3.84 billion recorded the previous year.

This growth signals sustained demand for digitally distributed credit and indicates improving access to formal financing, particularly for consumers and micro, small and medium-sized enterprises (MSMEs) historically underserved by traditional banks.

Online trading is seeing a similar surge in participation. In 2024, the total number of stock trading accounts climbed to 2.9 million, a 53% jump from 1.9 million in 2023. This expansion was driven almost exclusively by new online accounts, while offline account numbers remained relatively consistent.

Data also show that younger Filipinos make up the majority of these new accounts. This demonstrates how digitally natives are entering the stock market in large numbers as digital platforms lower barriers to entry and improve access to financial instruments.

This trend is supported by government and institutional efforts to broaden market access, including initiatives such as the Philippine Stock Exchange Tech Board aimed at attracting high-growth companies.

Complementing these efforts, the Securities and Exchange Commission (SEC) approved in mid-2025 select players, including GCash and Pluang Philippines, to pilot investment platforms within its regulatory sandbox. The regime allows companies to test innovative products within a controlled environment and defined participant limits, subject to regulatory oversight.

Under the framework, Pluang Philippines operates Flow, an investment app focused on making US stock investing accessible locally. The app allows users to purchase shares in major Wall Street companies like Apple and Amazon for as little as PHP 100 (US$1.65), and provides real-time market data in addition to comprehensive analytics. The initial sandbox trial for Pluang was set for six months with a limit of 1,000 pre-selected users, according to Insider PH.

Similarly, GCash is testing GStocks Global, a new feature that could let Filipinos invest in global stock markets. This trial is scheduled to last 24 months and can take in up to 2 million participants.

This regulatory push is critical given today’s low trading volumes in the Philippines and weak stock market performances. Increasing the diversity and number of retail investors can help boost market activity, improve liquidity, and contribute to greater long-term stability and attractiveness of the stock market.

Philippine 2025 funding activity

In 2025, the Philippine startup ecosystem recorded a significant increase in funding activity. Tech startups raised a total of US$1.5 billion, composed of US$1.01 billion in equity funding and US$490 million in debt financing.

Year-over-year (YoY), tech funding grew 34%, rising from US$1.12 billion in 2024. This growth was driven mainly by debt financing, which surged 144% YoY, while equity funding increased 10%.

Following global trends, the total deal volume dropped, declining 18% YoY to 72 transactions. However, the average deal size surged, increasing 64% to US$20.8 million. This reflects a shift towards larger transactions and a focus on a few select ventures.

Deal activity remained focused on two distinct areas. Early-stage deals under US$5 million continued to dominate the majority of total activity, while deals exceeding US$50 million gained traction, largely by private equity participation and debt deals.

This polarization came at the expense of companies raising growth capital. Deal flow remained thin in the US$10-20 million range, while activity in the US$20-60 million bracket declined further. This highlights a persistent gap in financing and support for companies in the critical phase of early growth.

Though fintech has risen significantly in the Philippines over the past years, the country still trails behind some of its ASEAN counterparts including Indonesia and Singapore. In the first nine months of 2025, Filipino fintech startups secured US$33.3 million through five transactions, according to the Fintech in ASEAN 2025 report. The figures placed the Philippines third in total funding value in ASEAN, accounting for 4% of the regional total, and fourth in deal count at 9%.

Featured image: Edited by Fintech News Singapore, based on image by ttonaorh via Freepik