Buying during lockdown: No to cash, yes to contactless payments
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Buying during lockdown: No to cash, yes to contactless payments
After years of luring consumers to switch to digital and contactless payments, banks and financial services companies are finally seeing their electronic investments pay off.
After years of luring consumers to switch to digital and contactless payments, banks and financial services companies are finally seeing their electronic investments pay off.
With families trapped inside their homes to comply with the enhanced community quarantine, and banks opening fewer branches and operating at fewer hours, access to paper money has been difficult. Clients who were used to making ATMs their personal wallet, meaning they withdraw small sums to cover what they need for a day or two, have learned to better plan their cash flow and whenever possible, tap electronic payments to cover their purchasing needs.
With families trapped inside their homes to comply with the enhanced community quarantine, and banks opening fewer branches and operating at fewer hours, access to paper money has been difficult. Clients who were used to making ATMs their personal wallet, meaning they withdraw small sums to cover what they need for a day or two, have learned to better plan their cash flow and whenever possible, tap electronic payments to cover their purchasing needs.
As we all try to avoid person to person contact in the near future, at least until a vaccine for COVID-19 is available, paying with cash is a no-no, but digital payments? That’s a yes-yes.
As we all try to avoid person to person contact in the near future, at least until a vaccine for COVID-19 is available, paying with cash is a no-no, but digital payments? That’s a yes-yes.
What are digital and contactless payments? A digital payment is one that you send online and complete using the internet and mobile channels. To make a digital payment, you and the receiver both need to have digital wallets. In the early days of digital payment, the one making the payment and the one receiving it needed to have the same digital wallet, for example, an account with the same bank. Today, nearly all digital wallets have become agnostic so you can pay a person digitally even if her account is with a different bank.
What are digital and contactless payments? A digital payment is one that you send online and complete using the internet and mobile channels. To make a digital payment, you and the receiver both need to have digital wallets. In the early days of digital payment, the one making the payment and the one receiving it needed to have the same digital wallet, for example, an account with the same bank. Today, nearly all digital wallets have become agnostic so you can pay a person digitally even if her account is with a different bank.
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Meanwhile, a contactless payment requires that you link your bank account or credit card to a phone that can be tapped on a digital reader to trigger a payment. There are also contactless credit cards that use radio-frequency to enable secure payments, so you do not need to hand over your physical plastic when making purchases.
Meanwhile, a contactless payment requires that you link your bank account or credit card to a phone that can be tapped on a digital reader to trigger a payment. There are also contactless credit cards that use radio-frequency to enable secure payments, so you do not need to hand over your physical plastic when making purchases.
If you are still paying with cash, it’s time to expand and enhance your quarantine to include your wallet. With the right apps and digital payment partners, you can buy nearly everything, anywhere from the comfort of your COVID-19-free home. Here are some of the leading cashless, digital and online payment platforms waiting for you.
If you are still paying with cash, it’s time to expand and enhance your quarantine to include your wallet. With the right apps and digital payment partners, you can buy nearly everything, anywhere from the comfort of your COVID-19-free home. Here are some of the leading cashless, digital and online payment platforms waiting for you.
PayPal as your first (digital payment) love
PayPal as your first (digital payment) love
When online shopping started to become popular with eBay back in the 1990s, consumers were understandably wary about Internet security. It did not help that stories of identity theft were cropping up everywhere. The launch of PayPal was targeted to address those issues by offering a more secure way to shop online.
When online shopping started to become popular with eBay back in the 1990s, consumers were understandably wary about Internet security. It did not help that stories of identity theft were cropping up everywhere. The launch of PayPal was targeted to address those issues by offering a more secure way to shop online.
Opening a PayPal account is easy and you can do it in less than 2 minutes. You will need to link it with your bank account or to a debit or credit card. You may be thinking – why not just pay directly with my credit card or bank account then? Well, that’s because you do not want to share your account details with every single person that you make a payment to. With a PayPal account, you get an extra layer of protection, and at least for me, I can sleep a little better at night.
Opening a PayPal account is easy and you can do it in less than 2 minutes. You will need to link it with your bank account or to a debit or credit card. You may be thinking – why not just pay directly with my credit card or bank account then? Well, that’s because you do not want to share your account details with every single person that you make a payment to. With a PayPal account, you get an extra layer of protection, and at least for me, I can sleep a little better at night.
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One more plus for PayPal is its Buyer Protection policy. If you bought an item overseas and it does not arrive, or it does but it is nothing like what was in the photo shown to you or as described, PayPal will refund you the full amount. You’ll find that not many credit cards offer this, nor online sellers so that’s another source of comfort for you.
One more plus for PayPal is its Buyer Protection policy. If you bought an item overseas and it does not arrive, or it does but it is nothing like what was in the photo shown to you or as described, PayPal will refund you the full amount. You’ll find that not many credit cards offer this, nor online sellers so that’s another source of comfort for you.
Finally, maintaining a PayPal account is free, and most payments do not require additional fees. I’ve made local payments and there is no extra charge, although there are occasional stores that will try to pass on the fee to you (they have to pay a fee to PayPal because hey PayPal needs to make some money too and maintain their platform). You can decide to pay, or as I have done, use a different payment option or go to a different seller.
Finally, maintaining a PayPal account is free, and most payments do not require additional fees. I’ve made local payments and there is no extra charge, although there are occasional stores that will try to pass on the fee to you (they have to pay a fee to PayPal because hey PayPal needs to make some money too and maintain their platform). You can decide to pay, or as I have done, use a different payment option or go to a different seller.
If paying for overseas purchases, you can choose to settle with PayPal where they disclose their exchange rate at time of purchase, or take a chance and pay using your credit card hoping their rates will be friendlier. However, you will only know if rate is better or worse when the transaction is posted and your statement is available.
If paying for overseas purchases, you can choose to settle with PayPal where they disclose their exchange rate at time of purchase, or take a chance and pay using your credit card hoping their rates will be friendlier. However, you will only know if rate is better or worse when the transaction is posted and your statement is available.
GCash for heavy mobile phone users
GCash for heavy mobile phone users
Powered by Globe Telecom, GCash is one of the pioneers in the Philippine digital payment industry. You don’t need to be a Globe mobile subscriber to use the app. Whichever your network, you can use this mobile money service to buy prepaid phone load, purchase items, send and receive money, pay bills, book movie tickets, and now even open a savings account and apply for a loan.
Powered by Globe Telecom, GCash is one of the pioneers in the Philippine digital payment industry. You don’t need to be a Globe mobile subscriber to use the app. Whichever your network, you can use this mobile money service to buy prepaid phone load, purchase items, send and receive money, pay bills, book movie tickets, and now even open a savings account and apply for a loan.
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To register for an account, download the App from your phone (again, works with nearly all smart phones), or dial *143# from your mobile phone, or apply through Facebook Messenger.
To register for an account, download the App from your phone (again, works with nearly all smart phones), or dial *143# from your mobile phone, or apply through Facebook Messenger.
Once enrolled, you will have a GCash Wallet and you’ll need to Cash-In (convert regular cash to GCash) through several partners that include banks, remittance centers, pawnshops, department stores and convenience stores. Not all The Cash-In options are equal, meaning some are free while some charge a service fee. I transfer funds from my bank online and that has no fee on both ends. Always check the fine print before you complete and transaction as all these fees add up.
Once enrolled, you will have a GCash Wallet and you’ll need to Cash-In (convert regular cash to GCash) through several partners that include banks, remittance centers, pawnshops, department stores and convenience stores. Not all The Cash-In options are equal, meaning some are free while some charge a service fee. I transfer funds from my bank online and that has no fee on both ends. Always check the fine print before you complete and transaction as all these fees add up.
If you want to Cash-Out or withdraw funds, you can also go to the same partner outlets. According to the GCash website, there is no fee for cashing out, plus they do not require a minimum balance too.
If you want to Cash-Out or withdraw funds, you can also go to the same partner outlets. According to the GCash website, there is no fee for cashing out, plus they do not require a minimum balance too.
PayMaya is another Smart payment choice
PayMaya is another Smart payment choice
If you’re a Smart subscriber like me, chances are you did not sign up for GCash when it launched. Well PayMaya may be late in the game but it offers nearly the same product and services as GCash so it’s not much of a loss. The two also have pretty much the same partners when you want to add money or payout. And because it is the growing and consumer-friendly trend, PayMaya is also network-agnostic, so you can use any Philippine mobile number to register.
If you’re a Smart subscriber like me, chances are you did not sign up for GCash when it launched. Well PayMaya may be late in the game but it offers nearly the same product and services as GCash so it’s not much of a loss. The two also have pretty much the same partners when you want to add money or payout. And because it is the growing and consumer-friendly trend, PayMaya is also network-agnostic, so you can use any Philippine mobile number to register.
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I actually downloaded the App because we have several Smart and PLDT accounts as a family (all our mobile phones and our internet and landline phone too) and we earn rewards for each of those accounts. All these rewards points are automatically converted as PayMaya credits and redemption is easier with the App.
I actually downloaded the App because we have several Smart and PLDT accounts as a family (all our mobile phones and our internet and landline phone too) and we earn rewards for each of those accounts. All these rewards points are automatically converted as PayMaya credits and redemption is easier with the App.
Users can do nearly everything from shopping for clothes and gadgets, booking flights and accommodations, buying concert tickets, and sending money to anyone with a PayMaya account. For better monitoring of your use, PayMaya (just like GCash) sends an SMS notification after every transaction.
Users can do nearly everything from shopping for clothes and gadgets, booking flights and accommodations, buying concert tickets, and sending money to anyone with a PayMaya account. For better monitoring of your use, PayMaya (just like GCash) sends an SMS notification after every transaction.
Based on their website, there is a charge of at least 1.5 percent for every Smart Money or Smart Padala to PayMaya add money transaction. But there are no fees when you add money through it other partners. However, many providers are waiving or reducing fees during the enhanced community quarantine so check the terms and conditions or ask for Help in the App.
Based on their website, there is a charge of at least 1.5 percent for every Smart Money or Smart Padala to PayMaya add money transaction. But there are no fees when you add money through it other partners. However, many providers are waiving or reducing fees during the enhanced community quarantine so check the terms and conditions or ask for Help in the App.
GrabPay for more than just rides
GrabPay for more than just rides
Ridesharing company Grab is one of the companies hard hit by the enhanced community quarantine. While you cannot book cars right now, you can book for Food delivery and also messenger service via motorbike. Most recently, you can order grocery supplies too. And they have introduced contactless payments as well via GrabPay.
Ridesharing company Grab is one of the companies hard hit by the enhanced community quarantine. While you cannot book cars right now, you can book for Food delivery and also messenger service via motorbike. Most recently, you can order grocery supplies too. And they have introduced contactless payments as well via GrabPay.
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To use GrabPay, users can link their bank account, or top up with partner stores, or charge to their credit card (the best option for me). Even tips for drivers can be paid with GrabPay so no more passing germs with hard cash.
To use GrabPay, users can link their bank account, or top up with partner stores, or charge to their credit card (the best option for me). Even tips for drivers can be paid with GrabPay so no more passing germs with hard cash.
If you’re looking for an incentive, Grab offers higher loyalty points for users who use GrabPay (versus paying with cash or credit card). As Grab expands GrabPay, they are also teaming up with big retailers so now you can use GrabPay to pay for your supermarket bill at SM. Keep watching this space in your Grab App as GrabPay becomes a currency on its own.
If you’re looking for an incentive, Grab offers higher loyalty points for users who use GrabPay (versus paying with cash or credit card). As Grab expands GrabPay, they are also teaming up with big retailers so now you can use GrabPay to pay for your supermarket bill at SM. Keep watching this space in your Grab App as GrabPay becomes a currency on its own.
Don’t forget your friendly neighborhood bank
Don’t forget your friendly neighborhood bank
The best place to get started with digital or contactless payments is still your bank. After all that’s where your funds are parked. If you receive your salary through your bank, that’s the account that can fund your cash payment Apps.
The best place to get started with digital or contactless payments is still your bank. After all that’s where your funds are parked. If you receive your salary through your bank, that’s the account that can fund your cash payment Apps.
Most banks have also embraced digital and their online and mobile payment options are so broad that you don’t need another App. Finally, many are waiving their online fees during the quarantine so this is a good time to try their service.
Most banks have also embraced digital and their online and mobile payment options are so broad that you don’t need another App. Finally, many are waiving their online fees during the quarantine so this is a good time to try their service.
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Whether you pay in cash or digital, until COVID-19 is all over, remember to wash your hands, seriously!
Whether you pay in cash or digital, until COVID-19 is all over, remember to wash your hands, seriously!
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