Philippines sets target of 50% digital payments in retail until 2023

The Philippine central bank is confident to reach its target of 50 per cent of retail payments being conducted digitally in less than two years, Bangko Sentral ng Pilipinas governor Benjamin Diokno said on December 28 as the country is building upon a surge in electronic transactions during the Covid-19 pandemic.

Diokno also sees the target of 70 per cent of Filipino adults having traditional bank or eMoney accounts by 2023 as well within reach, according to a Manila Bulletin report. Both seem possible as digitalisation and financial inclusion have improved in the country in the past.

“We are confident of hitting the twin goals,” Diokno said at a banking forum, adding that the proportion of banked Filipino adults has reached 53 per cent in the first quarter of 2021, coming closer to the target of 70 per cent.

“With financial digitalisation, I am confident that we will achieve the stronger post-Covid economy that we envision sooner rather than later,” Diokno noted.

Digital payments just one per cent in 2013

Digital payments made up around 20 per cent of total financial transactions in the Philippines in 2020, up from 14 per cent in 2019 and just one per cent in 2013.

“As more Filipinos embrace the convenience of digital payments, we expect the phenomenal growth in digital financial transactions to continue in the years ahead,” Diokno said.

The rise in digital payments is expected to be supported by more sophisticated electronic retail payment system, but also by the emergence of digital banks in the Philippines.

Six licensed digital banks in the Philippines

Currently, there are six licensed digital banks in the country, namely Overseas Filipino Bank, or OFBank, Tonik Digital Bank, UNObank, Union Digital Bank, GOTyme and Maya Bank.

In August, Diokno announced that the country’s central bank would stop accepting digital banking applications to allow regulators “to monitor” the industry.



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The Philippine central bank is confident to reach its target of 50 per cent of retail payments being conducted digitally in less than two years, Bangko Sentral ng Pilipinas governor Benjamin Diokno said on December 28 as the country is building upon a surge in electronic transactions during the Covid-19 pandemic. Diokno also sees the target of 70 per cent of Filipino adults having traditional bank or eMoney accounts by 2023 as well within reach, according to a Manila Bulletin report. Both seem possible as digitalisation and financial inclusion have improved in the country in the past. “We are confident...

The Philippine central bank is confident to reach its target of 50 per cent of retail payments being conducted digitally in less than two years, Bangko Sentral ng Pilipinas governor Benjamin Diokno said on December 28 as the country is building upon a surge in electronic transactions during the Covid-19 pandemic.

Diokno also sees the target of 70 per cent of Filipino adults having traditional bank or eMoney accounts by 2023 as well within reach, according to a Manila Bulletin report. Both seem possible as digitalisation and financial inclusion have improved in the country in the past.

“We are confident of hitting the twin goals,” Diokno said at a banking forum, adding that the proportion of banked Filipino adults has reached 53 per cent in the first quarter of 2021, coming closer to the target of 70 per cent.

“With financial digitalisation, I am confident that we will achieve the stronger post-Covid economy that we envision sooner rather than later,” Diokno noted.

Digital payments just one per cent in 2013

Digital payments made up around 20 per cent of total financial transactions in the Philippines in 2020, up from 14 per cent in 2019 and just one per cent in 2013.

“As more Filipinos embrace the convenience of digital payments, we expect the phenomenal growth in digital financial transactions to continue in the years ahead,” Diokno said.

The rise in digital payments is expected to be supported by more sophisticated electronic retail payment system, but also by the emergence of digital banks in the Philippines.

Six licensed digital banks in the Philippines

Currently, there are six licensed digital banks in the country, namely Overseas Filipino Bank, or OFBank, Tonik Digital Bank, UNObank, Union Digital Bank, GOTyme and Maya Bank.

In August, Diokno announced that the country’s central bank would stop accepting digital banking applications to allow regulators “to monitor” the industry.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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