tl;dr
In 2024, digital payments in the Philippines have surpassed traditional cash transactions, making up 57.4% of retail payment volume and 59% of transaction value, exceeding national targets. Growth is driven mainly by merchant payments, person-to-person transfers, and business-to-business transaction...
Digital payments have surged ahead of traditional cash transactions in the Philippines, now constituting 57.4% of total monthly retail payment volume and 59% of the overall transaction value in 2024. This marks a notable 4.6 percentage point increase from the previous year, surpassing the national target outlined in the Philippine Development Plan 2023–2028. The Bangko Sentral ng Pilipinas (BSP) attributes this growth to a broad transformation in how Filipinos conduct and manage their finances through electronic channels.
The rise in digital payment adoption is driven predominantly by merchant payments, person-to-person (P2P) transfers, and business-to-business (B2B) transactions. Together, these categories account for 93.2% of total digital transaction volume, which equals 3.08 billion transactions in 2024. Merchant payments lead the way, increasing 29.1% year-on-year to represent 66.4% of digital transaction volume, followed by P2P transfers growing by 34.7% and B2B payments climbing 28.1%, reflecting successful digitalization initiatives in the business sector.
Fast payment platforms InstaPay and PESONet have seen remarkable expansion. InstaPay’s transaction volume rose by 67.8%, encouraged by its speed and appeal for small-value P2P transfers, while PESONet’s addition of a third daily settlement cycle has enhanced supplier payments, demonstrating ongoing upgrades in payment infrastructure and consumer demand for flexibility.
The government sector stands out with nearly complete digital adoption, with 97.2% of payments processed electronically, particularly for social transfers and supplier contracts. Personal transaction digitalization is also strong, with over 70% of personal payments by volume and value conducted digitally, signaling a sustained behavioral shift away from cash. Meanwhile, business-related digital payments, although smaller in volume, contribute significantly to total transaction value, indicating increased corporate reliance on digital finance.
Retail payments remain largely dominated by person-to-business (P2B) and business-to-business (B2B) transactions, accounting collectively for 83.5% of the total. This underscores the strategic importance of these payment flows in driving improvements in the payment ecosystem.
The BSP envisions a future where digital payments become the default choice across the archipelago, emphasizing convenience, security, and empowerment for all Filipinos, including the unbanked. The central bank prioritizes sustained habitual use over one-off adoption, striving to embed digital transactions into everyday life nationwide. Ensuring consumer trust and payment safety remains a non-negotiable pillar of their approach.
Several key initiatives launched or expanded in 2024 aim to accelerate progress, such as Project Nexus for enhanced cross-border payment connectivity across Asia, the wholesale central bank digital currency (CBDC) pilot Project Agila, and improvements to the national QR Ph system for both P2P and merchant payments. Additionally, the BSP is advancing policies to lower transaction fees, improve system oversight, and protect users and merchants through licensing and risk controls.
Overall, the BSP’s comprehensive strategy combines infrastructure development, regulatory vigilance, and a forward-looking vision to foster a robust digital finance ecosystem. Their goal is not only widespread accessibility but habitual use that benefits all sectors of Philippine society with secure, efficient, and reliable digital payment options.