By Katherine K. Chan
DIGITAL PAYMENTS in the Philippines continued their rapid climb, with transactions through InstaPay and PESONet reaching a combined P19.749 trillion in the 10 months to October.
The transaction value grew 41.2% from P13.989 trillion a year earlier, while the volume of payments nearly tripled to 3.467 billion, according to data from the Bangko Sentral ng Pilipinas (BSP).
InstaPay, the central bank’s real-time, low-value electronic fund transfer facility, accounted for P9.069 trillion in value, up 55.8% from a year earlier. The number of InstaPay transactions more than tripled to 3.371 billion.
Meanwhile, PESONet, used primarily for high-value transfers and as an electronic alternative to checks, processed P10.68 trillion, up 30.7% from a year earlier. Transaction volume increased 16.1% to 96.288 million.
“The sustained double-digit growth for both reflects increased use of digital banking and payment solutions as alternatives to checks and other over-the-counter transactions,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
He said the rise in digital payments is being driven by both businesses integrating online payment systems and consumers using e-wallets linked to digital banking platforms.
“This also enhances financial inclusion, particularly in areas with limited access to physical bank branches but with mobile connectivity for online banking and payment solutions,” he added.
The BSP has set a target for digital payments to account for 60-70% of retail transaction volume by 2028, in line with the Philippine Development Plan.
In 2024, online payments made up 57.4% of retail transactions by volume and 59% by value, up from 52.8% and 55.3%, respectively, in 2023, according to a central bank report.
Analysts expect the growth trajectory to continue as more Filipinos and enterprises embrace digital payments, drawn by their convenience and round-the-clock accessibility compared with traditional banking hours.
