In ‘Viber country,’ the messaging app now into e-commerce too

MANILA, Philippines —  If Ofir Eyal needed proof that the Philippines is “Viber country” – that is, a nation recognized for its high level of engagement with the text, voice and video messaging app – he got it as soon as his plane touched down in his first visit to the Philippines for Rakuten Viber’s Asia Pacific workshop in early July.

“Viber exists in over 190 countries, but the penetration is very different depending on where you are. So, whenever I visit what we call a ‘Viber country’ like the Philippines, it’s always very refreshing and fun,” says Eyal, CEO of Rakuten Viber. “From the moment I landed, I heard the Viber ringtone and messaging sound and saw people on their laptops using the Viber app.”

“In countries where we’re not the biggest messaging app, it’s kind of an exercise in humility,” he adds. “But it’s also nice to come here and ride the waves of popularity.”

Messaging app of choice

Given the Philippines’ reputation as the “text capital of the world,” it was only a matter of time before Viber, which debuted in 2010 and was acquired by Japanese tech conglomerate Rakuten Group in 2014, would become Pinoys’ messaging app of choice. It logged a 13 percent year-on-year growth in monthly active users in the country and a penetration rate of 71 percent in 2023.

So important a market is the Philippines to Viber that members of the app’s product team were a room away from their CEO during this interview, conducting usability research with local users. The goal is to create products or services that will cater to Filipinos’ specific needs, yet also be relevant to other markets.

“In the Philippines, where the data and SMS costs were always high and the market was very budget-oriented, Viber started as a need to save people money yet give them better service. So, it kind of sold itself in the first couple of years,” Eyal says. “Today, messaging is a commodity. We see the competition and we always want to be ahead of the curve. And the way for us to be ahead of the curve is to bring more value-added services. We want to grab as much value as we can and put it in the Viber app. This is our super app vision.”

First, communication – now commerce, too

That the app isn’t just a means of communication, but a platform for commerce too, particularly to the Philippines’ micro, small, and medium enterprises (MSMEs), comes as no surprise. With at least one million registered MSMEs in the country, many were already using the app’s public Business Profile feature for dedicated business-related transactions – from communicating with clients and colleagues to buying and selling food, drinks and other products.

Cebu’s MSMEs are certainly sold on Viber as an effective tool for business. Asa Ta Bai, a Viber channel for Cebuanos launched in 2022, is 243,000 subscribers strong. Cebu’s first and biggest online food community, Let’s Eat Bai, is slowly following in its footsteps with nearly 10,000 subscribers.

“Filipinos are very independent and have an entrepreneurial spirit. So, the ratio of small businesses here is higher,” he says. “And by nature, these small businesses, sometimes they don’t operate from an office, they don’t have a laptop, and they do all their business from a mobile device. It only makes sense that the tool to manage the business would be the same tool they’re using to talk to their customers. So, today they talk, the next day they book, and the day after, they conduct the payments.”

Viber Pay

This year, Pinoy entrepreneurs and their customers will be able to use Viber Pay, a feature that works like existing e-wallets, except you don’t have to switch apps to access it. Available to Viber users in Germany and Greece, Viber Pay was first announced in the Philippines in 2022.

“We’re at the last stretch,” Eyal says of the much-awaited feature. “We really want to make sure that the experience is as smooth, trustworthy and secure as possible.”

Security remains of utmost importance to Viber. Users of the app appreciate its caller ID, which identifies the person on the other end of the line (including suspected spammers) even if his or her number isn’t saved on your contacts list.

Viber messages are end-to-end encrypted by default, so once a message is sent, it’s not only deleted from Viber’s system, it can only be read by the sender and receiver. You can also activate the Disappearing Messages feature, which deletes your sensitive information based on how you set a self-destruct timer.

To reinforce itself as an efficient and protected platform for commerce, Rakuten Viber has been closely collaborating with local partners who are laying the groundwork for Viber Pay to operate as a digital payment solution.

“The idea is to add more and more layers or security circles. So, even if one circle is breached, somehow, there are more protective circles around that,” he explains. “Definitely, safety and security are at the heart of what we do. And I can ensure all the Filipino users that we are adhering to the highest security standards globally and taking all the precautions to make sure that your information is safe.”