Nelson Morales

Cash no longer king in PH as digital payments surge: study

Article (news)

Benise Balaoing

ABS-CBN News

<p>MANILA --  Cash is no longer king in the Philippines, as digital payments climb in the country, according to Bain and Company partner Bennett Aquino.</p><p>During a briefing with journalists, Aquino said gross transaction value of digital payments has climbed to $150 billion, from $125 billion in 2024.</p><p>&quot;There were some questions back in like... back a year ago, whether cash is still king. In the Philippines, quite unequivocally, cash is no longer king; 57 percent of monthly retail volume, monthly retail payment volume, is now digital,&quot; Aquino said during a briefing together with Google and Singapore&#x27;s Temasek. </p><p>He also noted that digital lending may reach a loan book balance of $5 billion this year.</p><p>&quot;Digital lending, for example, continues its steady growth, particularly for underserved communities, not only consumers, but recently, over a growing percentage of (small and medium enterprises as well), he said.</p><div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1764071911065google e-commerce.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Bain and Company partner Bennett Aquino talks about how e-commerce is reshaping the Philippine economy. Benise Balaoing, ABS-CBN News</span></span></span></div><p>The Philippine digital economy&#x27;s gross merchandise value is also expected to keep growing, and reach $36 billion in 2025. Aquino said e-commerce is the largest and strongest contributor to the country&#x27;s digital economy. He noted that e-commerce&#x27;s gross merchandise value is expected to reach $24 billion this year, up from the $20 billion seen in 2024.</p><p>&quot;We see headroom for it to even double by 2030,&quot; Aquino noted.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/27/video-commerce-now-20-pct-of-all-e-commerce-in-southeast-asia-youtube-2007" rel="noopener noreferrer" target="_blank">Video commerce now makes up 20 pct of all e-commerce in Southeast Asia: YouTube</a></div><p>Aquino also said that gross merchandise value in the transport and food digital space may reach $4 billion in 2025.</p><p>&quot;Gone are the days where they could just stack on delivery fees point blank, and you&#x27;d expect that consumers will actually just say yes,&quot; he said.</p><p>&quot;At the same time, a lot of the food and transport providers are driving down their own operational costs by optimizing logistics, streamlining operations.&quot;</p><p>For the online travel space, gross merchandise value is expected to reach $4 billion in 2025, up 14 percent from last year&#x27;s numbers.</p><p>Online media, meanwhile, is forecast to reach $5 billion gross merchandise value, Aquino said.</p><p>&quot;Interestingly, what&#x27;s working really well over the past year has been retail media...ads that are placed at the point of purchase,&quot; he said.</p><p>&quot;That works well because it has a direct impact on purchase behaviors. People already are quite willing or quite intent on purchasing, so just nudging them [in] a certain direction has worked quite well,&quot; he explained.</p><div><a href="https://www.abs-cbn.com/news/business/2024/11/27/philippine-digital-economy-posts-fastest-growth-in-se-asia-study-1807" rel="noopener noreferrer" target="_blank">Philippine digital economy posts fastest growth in SE Asia: study</a></div><div><a href="https://www.abs-cbn.com/business/11/02/23/ph-digital-economy-seen-to-reach-up-to-150b-by-2030-google" rel="noopener noreferrer" target="_blank">PH digital economy seen to reach up to $150B by 2030: Google</a></div>

<p>More than half of monthly retail payment volume is digital, according to a study by Bain and Company.</p>

More than half of monthly retail payment volume is digital, according to a study by Bain and Company.