E-wallet usage in sari-sari stores on the rise

MANILA, Philippines — Sari-sari stores are increasing their usage of e-wallets to support their operations and cater to customer demand, according to technology startup Packworks.

A survey of more than 2,000 sari-sari store owners within Packworks’ nationwide network found that half of the respondents saw a 75-percent increase in e-wallet usage in their store operations from January and August.

Other respondents also saw substantial growth with 20 percent experiencing a 100-percent increase in usage, another 20 percent posting a 50-percent growth and 10 percent reporting a 10-percent increase.

Packworks said store owners attributed the growing adoption to increased consumer demand as customers are also using e-wallets to purchase goods, access funds and settle bills at their local stores.

E-wallets are being used by store owners for various parts of their business operations.

Packworks said about 40 percent use the e-wallets for in-store payments, while 30 percent use such for bill payments and the remaining 30 percent for cash-in and cash-out transactions.

Use of e-wallets is also helping drive revenue for sari-sari stores with around 13 percent of store owners saying their e-wallet earnings are equal to their revenue from physical goods.

Based on Packworks’ data, 66 percent generate about 20 percent of their revenues from e-wallet use, while the remaining 21 percent said their e-wallet earnings account for 10 percent of their total revenue.

The bulk or 85 percent of store owners reported that they use GCash for their business transactions, while 15 percent are using Maya.

To increase their transaction capacity and meet surging customer demand, sari-sari stores are using up to five e-wallet accounts.

Packworks chief platform officer Hubert Yap underscored how digital tools such as e-wallets are enabling sari-sari stores to diversify their services and grow their businesses.

“The surge in e-wallet use proves that sari-sari stores are rapidly evolving into vital digital hubs for their communities,” Yap said.

“Aside from simply sellingtingiphysical items, they are now diversifying their product range, offering high-margin, value-added financial services and integrating digital tools such as our app to fundamentally improve their operations and function as near-frictionless nano-banks for the neighborhoods they serve,” he added.

According to Yap, these findings show the urgent need to support these micro-entrepreneurs with the right financial technology to ensure they could fully capitalize on the opportunity.