Digital payments now make up more than half of retail transactions in the Philippines, rising from 42% to 53% in just over a year, as more people across cities and rural areas move away from cash and traditional banking.
Non-bank lenders, now responsible for most digital credit activity, are expected to lend over US$550 million, driven by younger borrowers turning to faster alternatives and tens of millions of new downloads logged in the first three quarters.
This shift goes beyond how people move money—it is changing how they interact with digital systems that combine practical tasks with entertainment. With fewer people relying on physical outlets for financial services or leisure, more activity now takes place in blended spaces, where everything runs through a single screen.
That overlap is also reshaping how casino-style games are delivered. Instead of using direct deposits or card payments, many of these experiences now run through regulated sites that allow real rewards while staying within legal guidelines and offering easier access.
These platforms use two types of virtual currency. Gold Coins are used for casual gameplay with no cash value, while Sweeps Coins—earned through purchases, bonuses, or other offers—can be redeemed for prizes once a set number is reached. It removes the usual payment friction, keeps the experience fast and familiar, and fits well with the way mobile-first users already move through digital spaces.
To understand how deep this change runs, look at the infrastructure behind it: the national QR Ph standard now covers more than 675,000 merchant outlets nationwide, from urban malls to suburban bistros and wet markets.
That means scanning to pay is no longer confined to tech hubs—it's a daily habit in small-town sari‑sari stores and public transport stops. The push didn't come out of thin air: government and private sectors collaborated throughout the pandemic to fast-track QR Ph deployment; it's now central to the Bangko Sentral's goal of shifting 60–70% of retail transactions into digital channels.
While QR Ph strengthens domestic convenience, there are signs it'll reshape regional behavior too. Through ASEAN initiatives like Project Nexus, the Philippines is aligning its fast‑payment systems for cross-border transactions—so someday a QR scanned in Manila could work in Bangkok or Jakarta, using local currencies .
On the credit side, non-bank lenders aren't idling—they now hold over 55% of the digital lending market, translating to more than US$ 550 million in loans. Many of those are microloans under PHP 20,000, extended based on app behavior and repayment patterns rather than traditional bank scores.
The result: more Filipinos—including freelancers, small entrepreneurs, and remote workers—are getting access to finance they might otherwise miss.
Even pawnshops and money service businesses have leaned into this shift. Home to over 22,700 outlets as of late 2024, these channels act as both remittance touchpoints and fintech access nodes, particularly in Luzon's hinterlands.
In places where people once relied on cash or informal credit, a digital payment or app-based microloan is now available.
Behind all this stands robust policy support, with new e‑money licenses, an updated National Payment Systems Act, and a revamp of digital bank rules. Over 70 electronic money issuers now operate under BSP oversight, joined by emerging digital banks.
The same regulator is also exploring a wholesale central bank digital currency, primarily for improving interbank settlement and cross‑border transfer efficiency.
What's unfolding isn't a sudden break from the past but a steady recalibration, where tools built for speed and access are now shaping the pace of everyday life, often without ever needing to be noticed.
Article edited by Jack Wu