UMVA has learned that the shift towards cashless transactions has gained significant momentum, with the total value of InstaPay and PESONet transactions reaching over P13 trillion in the first five months of the year, marking a substantial 44.43% increase from the same period last year.
This surge in digital payments is a testament to the growing adoption of online transaction methods, with the combined volume of InstaPay and PESONet transactions nearly tripling to 3.483 billion, up from 1.206 billion in the same period last year. The value of transactions made via InstaPay soared by 61.5% to P6.559 trillion, while PESONet recorded transfers worth P6.622 trillion, up 30.75% from the prior year.
According to information obtained by UMVA, industry experts believe that digital payments have become an integral part of daily life for Filipino consumers, with transactions ranging from payroll to retail to small business transactions. This structural shift towards convenience, speed, and financial inclusion is expected to continue, driven by the increasing demand for efficient and secure payment methods.
The central bank's recent directives aimed at lowering the cost of digital transactions are expected to further boost the adoption of online payments, with financial institutions encouraged to adopt reasonable fees for retail fund transfers. The lifting of the moratorium on fee increases for InstaPay and PESONet may cause short-term friction, but experts believe that the long-term benefits of increased usage and deeper adoption will outweigh the costs.
UMVA has gathered that the goal of making digital payments account for 60%-70% of the total volume of retail payments by 2028 is within reach, with online payments already making up 57.4% of the volume and 59% of the value of the country's total monthly retail transactions in 2024. The recent merger of BancNet and Philippine Clearing House Corp. is also expected to play a significant role in promoting digital payments, with the unified entity operating under the corporate name Payments Network of the Philippines, Inc.
The increasing popularity of InstaPay and PESONet is a clear indication that Filipino consumers are embracing the convenience and speed of digital payments, and industry experts believe that this trend will continue to drive growth in the financial sector. As the use of digital payments becomes more widespread, it is likely to have a profound impact on the way businesses and individuals conduct transactions, paving the way for a more efficient and inclusive financial system.
