Digital payment usage in Philippines up 33% in 2024

CEBU, Philippines — The Philippines stands out in the digital payment solutions sector within Southeast Asia, recording a 33. 1 percent point-of-sale (POS) share of users among adults aged fifteen and older.

A study conducted by UnaCash, an in-app and in-store financial solutions provider, revealed that digital payment usage in the Philippines has increased tenfold from 3.2 percent in September 2018, to 33.1 percent in 2024. This is attributed to the surge in mobile commerce and the rise of POS kiosks.

According to the study, the Philippines is only surpassed by Indonesia, which has a high share of POS usage of 67.5 percent mainly due to the widespread use of cloud technology adoption, thriving e-commerce, and successful integration of digital payments.

With a share of POS users of 4.5 percent in Vietnam, 2.8percent in Malaysia, and 1.6 percent in Singapore, POS markets in these countries are at earlier stages of development, indicating growth potential.

“POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions. The development of self-service kiosks and enhanced e-commerce platforms have further contributed to this significant rise,” said Erwin G. Ocampo, head of product for UnaCash. Emerging opportunities for BNPL (buy now, pay later).

Meanwhile, the BNPL adoption in the Philippines has surged over the past few years, expanding 9.6 times since 2018, reflecting a strong consumer shift toward flexible payment solutions.

There is a stable share of BNPL users at 24.7 percent, placing it among the top three countries in Southeast Asia.

For users aged fifteen and above, a 3.3 percent increase was reflected monthly from September 2018 until July 2024.

The country’s solid performance in BNPL adoption reflects a growing trend towards financial solutions such as this, primarily driven by increasing digital financial services and consumer demand for flexible payment options, Ocampo explained.

Singapore led the region in the share of BNPL users at 75.4percent, with its user base increasing 7.1 times with a modest average monthly growth rate of 2.8 percent over the same period.

Vietnam displayed a penetration rate of 24.9 percent — a comparable growth rate of 7.1 times — with a 2.8 percent monthly increase.

Meanwhile, other Southeast Asian markets such as Malaysia (10.2 percent), Thailand (6.0 percent), Brunei (4.2percent), and Cambodia (3.6 percent) had a lower share of BNPL users.

“It’s quite evident that in the local market, there is a growing appetite for BNPL

services, driven by increased e-commerce and a rising preference for convenient financial

options. Be it through the online space, or in-store channels, its developments present significant opportunities for businesses and investors looking to potentially engage with the

expansion of the digital economy in the country,” Ocampo added.

UnaCash offers people-centric, in-app, and in-store digital financial solutions tailored to the evolving needs of Filipinos. Its ‘Buy now, Pay later’ service has been upgraded to include point-of-sale loans, accessible via online and in-store partner merchants.

With the help of analytics and data-driven technologies, UnaCash is driven to continuously improve products and develop new services that will bridge critical financial gaps in the Philippines. — Ehda M. Dagooc