By Katherine K. Chan
THE COMBINED VALUE of transactions made via InstaPay and PESONet increased by nearly 47% year on year to over P15 trillion in the first eight months, data from the Bangko Sentral ng Pilipinas (BSP) showed, reflecting continued growth in online payments in the country.
Transactions coursed through the two automated clearing houses soared to P15.348 trillion in the eight months ended August from P10.441 trillion in the comparable year-ago period.
In terms of volume, InstaPay and PESONet transactions more than doubled (161.6%) to 2.398 billion in the period from 916.582 million a year ago.
Broken down, the total value of InstaPay transactions rose by 9.5% year on year to P6.988 trillion in the period from P6.379 trillion.
The volume of transactions made via the payment gateway ballooned by 172.9% to 2.322 billion from 851.025 million last year.
Meanwhile, the value of transactions done through PESONet doubled (105.8%) year on year to P8.36 trillion at end-August from P4.062 trillion.
The volume of transactions that went through the channel reached 75.833 million, a 15.7% increase from the 65.556 million seen a year earlier.
InstaPay and PESONet are automated clearing houses under the central bank’s National Retail Payment System framework.
InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.
Meanwhile, PESONet is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks.
The steady growth of InstaPay and PESONet transactions indicates the wider adoption of digital payments in the country, said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies.
“It reflects stronger adoption of digital payments driven by fintech (financial technology) growth, wider e-commerce usage, and the push for financial inclusion,” he said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that more consumers and businesses are using electronic payment channels for convenience and efficiency.
“More people (are) also finding it more convenient, cheaper, faster, and safer to move funds from one bank to another using InstaPay and PESONet any time and from anywhere, instead of over-the-counter transactions,” he said.
Reinielle Matt M. Erece, economist at Oikonomia Advisory & Research, Inc., said the increase in InstaPay and PESONet transactions also reflects strong consumer sentiment.
“Improving consumer confidence for the second half of the year is a signal that households are now willing to spend more towards the latter part of 2025,” he said in a Viber message. “The improving consumer confidence is evident with the growth of transactions done through these channels.”
He said transactions will continue to grow in the coming months due to expectations of increased spending during the holiday season and amid lower borrowing costs.
“Transactions are likely to keep growing as more government, corporate, and MSME (micro, small, and medium enterprises) payments go digital, supported by the BSP’s continued efforts toward a cash-lite economy,” Mr. Rivera added.
The central bank wants digital payments to make up 60-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.
The share of online payments in monthly retail transactions stood at 57.4% in terms of volume and 59% in value terms in 2024, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023.
