Global Compliance

Philippines Payment Landscape: The Rise of E-Wallets in a Cash-Heavy Economy

Waffo Team

The Philippines is a founding member of ASEAN and a key player in APEC. While its infrastructure and business environment are still developing, its consumption power and trade capabilities are robust.

  • Demographic Dividend: A population of 117 million, with 64% aged between 15 and 64.

  • E-commerce Boom: The market size reached $13.63 billion in 2023, a 100-fold increase over the last decade.

  • Digital Adoption: Internet penetration stands at 73%, with smartphone usage at 69%.

  • Payment Shift: While cash remains dominant, e-wallets now capture over 30% of the market.

  • Financial Inclusion: E-money accounts (36%) now outnumber traditional bank accounts (23%).

01. Overview: A Consumption-Driven Market

Demographic Power

With a population growth of 1.5% year-on-year, the Philippines boasts a massive, young consumer base. This demographic structure provides a significant "dividend" for retail and e-commerce growth.

Infographic showing Philippines key stats: 117 million population, $437.15 Billion GDP, and No.2 GDP growth forecast in Southeast Asia.
Infographic showing Philippines key stats: 117 million population, $437.15 Billion GDP, and No.2 GDP growth forecast in Southeast Asia.

Digital Economy

Despite starting later than some neighbours, the digital economy is flourishing.

  • Users: E-commerce users reached 51.47 million.

  • Habits: 40% of respondents express interest in "Buy Now, Pay Later" (BNPL) services.

  • Finance: Financial service penetration has reached 56%.

02. The Payment Battlefield: Cash vs. Wallets

Online payment adoption was historically low, but government policy and the pandemic have accelerated diversification.

Chart showing Philippines digital market transaction volume forecast: Growing from $7 Billion in 2019 to $25 Billion in 2025 (257% growth).
Chart showing Philippines digital market transaction volume forecast: Growing from $7 Billion in 2019 to $25 Billion in 2025 (257% growth).

1. E-Wallets

E-wallets are the fastest-growing payment method, holding over 30% market share.

  • Leaders: GCash and Maya are household names, used for everything from bills to online shopping.

2. Cash

Cash remains the mainstream payment method, especially in rural areas and among small retailers. However, its share is steadily declining as digitization advances.

3. QR Payments (QRPH)

QRPH is the National QR Code Standard launched by the Central Bank (BSP).

  • Function: Enables interoperable payments between banks and non-bank e-money issuers.

  • Impact: Provides a fast, secure way to transfer funds and pay merchants using a standardized code.

4. Credit & Debit Cards

Penetration is lower than in developed nations but is rising in urban centres.

  • Share: Cards now account for nearly 20% of e-commerce transaction value, particularly for high-ticket items.

5. Bank Transfers

Accelerated by the pandemic, bank transfers are crucial for B2B transactions and larger payments, though fees can sometimes be a barrier.

03. Key Players: The Digital Titans

GCash

The undisputed "super app" of the Philippines, often called the "Alipay of the Philippines."

  • Users: Over 81 million active users (as of May 2023).

  • Ecosystem: Backed by Globe Telecom and Ant Group. It covers remittances, bills, shopping, and investment.

  • Reach: Accepted by 2.5 million merchants.

Maya Business (formerly PayMaya)

The primary competitor to GCash, offering a sleek, secure digital wallet.

  • Features: No monthly fees, real-time transaction monitoring, and integrated crypto services.

  • Scope: Serves individuals, businesses, and even government agencies for social service disbursements.

GrabPay

Integrated into Southeast Asia's leading super app, Grab.

  • Usage: Essential for ride-hailing and food delivery, but increasingly used for online and offline retail payments.

  • User Base: Over 115 million users across the region.

ShopeePay

The integrated wallet for the Shopee platform.

  • Ecosystem: Partners with over 35 banks and e-wallets to facilitate seamless payments for online shoppers.

Coins.ph

A pioneer in the crypto space.

  • Function: A mobile wallet that allows users to buy/sell crypto (Bitcoin, Ethereum, XRP) and pay bills, even without a bank account.

Traditional Banks & OTC

Banks: BDO, BPI, UnionBank, and RCBC offer robust digital banking services.

  • Over-the-Counter (OTC): 7-Eleven CLIQQ kiosks are vital for allowing cash-based customers to pay for online bills and purchases.

Conclusion: Seizing the Opportunity

The Philippines offers immense potential due to its young population and rapid digital adoption. However, challenges like infrastructure gaps and cybersecurity risks remain.

Waffo empowers your expansion by

providing a comprehensive payment solution that covers GCash, Maya, QRPH, local cards, and OTC options, ensuring you can serve every Filipino customer seamlessly.