Over half of retail transactions now digital, says BSP

MANILA, Philippines — More than half of the country’s retail payments are now being made digitally, marking a new milestone in the Philippines’ transition toward a cash-lite economy, according to the Bangko Sentral ng Pilipinas.

Data from the BSP’s 2024 Status of Digital Payments report showed that digital transactions accounted for 57.4 percent of total monthly retail payment volume and 59 percent of value.

These figures mark a steady increase from 52.8 percent and 55.3 percent, respectively, in 2023. It also surpassed the 52 to 54 percent target set under the Philippine Development Plan.

BSP Governor Eli Remolona Jr. said the figures reflect not just progress in payment infrastructure but also growing public trust in digital financial services.

“As we look ahead, we will continue to foster a digital finance ecosystem that is future-ready yet firmly grounded in trust, security and consumer welfare. This means promoting innovation while maintaining the safeguards that protect users and ensure integrity across the system,” Remolona said in the report.

The country’s share of digital payments has risen dramatically from just one percent in volume and eight percent in value in 2013, driven by a mix of regulatory reforms, public-private partnerships as well as the widespread adoption of e-wallets, QR payments and electronic fund transfers.

Merchant payments continued to be the largest contributor to digitalization, comprising 66.4 percent of monthly digital payment volume last year. These include payments made through QR Ph and other app-based platforms.

Person-to-person transfers, typically conducted through InstaPay, also rose by 20.6 percent year-on-year and accounted for 20.6 percent of total digital transactions. Business-to-business supplier payments followed at 6.2 percent of digital volume, underscoring the increasing digitalization of business operations.

Merchant payments, P2P transfers and supplier payments made up 93.2 percent of all digital payment transactions in 2024.

Digital transactions were also buoyed by increased QR code adoption. The number of merchants accepting QR Ph jumped by nearly 150 percent.

The central bank also noted a rise in recurring transactions, with QR Ph person-to-merchant and InstaPay transfers becoming more commonplace in everyday payments.

Government disbursements remained the most digitized use case, with 97.2 percent of transactions processed electronically. Payments from individuals to the government, however, still lagged behind, with only 24.6 percent of those transactions done digitally.

BSP Deputy Governor Mamerto Tangonan said the central bank is now focused on encouraging habitual use of digital platforms across all sectors.

“We envision a future where digital becomes the default, not only because it is mandated but because the end users see real value in its convenience, security and the feeling of empowerment,” Tangonan said.

Digital payment platforms also continued to expand their capabilities. InstaPay added a third daily settlement cycle to improve fund transfers, while the BSP and industry players began testing new services such as request-to-pay and direct debit, both expected to go live in 2025.

As digitalization accelerates, the BSP emphasized the need to balance innovation with protection.

“Safety in payments, whether digital, physical or cross-border, is non-negotiable,” Tangonan said.

“We are committed to a regulatory environment that is vigilant, agile and informed,” Tangonan added.

Remolona said the BSP’s long-term goal is to build a digital finance ecosystem that is secure, inclusive and designed around the real-world needs of Filipinos.