MANILA, Philippines — Digital payments gained further traction in the Philippines, with transactions via the Bangko Sentral ng Pilipinas (BSP)’s InstaPay and PESONet platforms surging by 34.6 percent as of end-October amid the sustained adoption of digital services.
Based on central bank data, the combined value of transactions done through InstaPay and PESONet stood at P13.99 trillion as of October, P3.6 trillion higher than the P10.39 trillion in the same period last year.
In terms of volume, transactions coursed through the clearing houses surged by 62.3 percent to 1.19 billion as of end-October from 733 million in the comparable year-ago period.
PESONet and InstaPay are automated clearing houses, launched under the BSP’s National Retail Payment System (NRPS), aimed at promoting a safe, efficient, affordable, inclusive and reliable retail payment system.
PESONet enables high-value transactions and may be considered as an electronic alternative to the paper-based check system, while InstaPay is a real-time, low value electronic fund transfer facility for transactions up to P50,000 and is most useful for remittances and e-commerce.
From January to October, the value of PESONet transactions went up by 28 percent to P8.17 trillion from a year-ago level of P6.38 trillion. Volume stood at 82.9 million, 9.5 percent higher than the 75.7 million seen as of October 2022.
On the other hand, the value of InstaPay transfers jumped by 45 percent to P5.82 trillion from P4.01 trillion. The BSP recorded a 68.3 percent increase in volume to 1.11 billion from 657.76 million at end-October last year.
The increase in PESONet and InstaPay transactions is expected to help the BSP achieve its goal of promoting the wider adoption of digital payments and onboard more adult Filipinos into the formal financial system.
Last year, the combined value of PESONet and InstaPay transactions jumped by 29.3 percent to P12.86 trillion from P9.94 trillion in 2022 as volume increased by 46.8 percent to 929.64 million from 633.47 million.
Based on its 2023 Report on the Status of Digital Payments in the Philippines, the share of digital payments to total retail transactions jumped to 52.8 percent last year from 42.1 percent in 2022.
The BSP is now targeting to increase the share to 60 to 70 percent in the next four years, in line with the government’s Philippine Development Plan for 2023 to 2028.
“The increase in PESONet and InstaPay transactions is expected to help the BSP achieve its goal of promoting the wider adoption of digital payments and onboard more adult Filipinos into the formal financial system.”