Philippines Cards and Payments – Opportunities and Risks to 2025

The annual value of card transactions in the Philippines cards and payments market was valued at $39.5 billion in 2021. The market is expected to grow at a CAGR of more than 8% during the forecast period.

The Philippines cards and payments market research report provides detailed analysis of market trends in the Filipinos cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, and cheques during the review-period. The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

Philippines cards and payments market outlook

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What are the market dynamics in the Philippines cards and payments industry?

Cash remains the most popular method of payment among consumers in the Philippines. This is mainly due to the high unbanked population, inadequate banking infrastructure, limited public awareness of electronic payments, and the low acceptance of payment cards at merchant outlets. However, with concerted efforts by the government and Bangko Sentral ng Pilipinas (BSP) (the country’s central bank), the share of cash is anticipated to decline gradually over 2021e-25f.

As part of the government’s financial inclusion efforts, micro-banking offices, electronic money issuers, microfinance providers, pawnshops, and remittance agents are being employed to provide access to financial services in unbanked or underserved areas. Consequently, the number of payment cards in circulation, transaction volume, and transaction value all recorded robust compound annual growth rates (CAGRs) during 2017-21e, a trend that is anticipated to continue going forward.

Which are the key segments in the Philippines cards and payments market?

The key segments in the Philippines cards and payments market are card-based payment, merchant acquiring, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, alternative payments.

Card-based payment market in the Philippines

Although the payment system in the Philippines is cash-dominated, payment card use is gradually increasing as consumers recognize the benefits of electronic payments. As part of the government’s financial inclusion efforts, micro-banking offices, electronic money issuers, microfinance providers, pawnshops, and remittance agents are being employed to provide access to financial services in unbanked or underserved areas. The availability of low-cost bank accounts has also supported the growth of the payment card market.

E-commerce payments market in the Philippines

Food and drink accounted for the largest share of total ecommerce transaction value in 2021e, driven by the increasing popularity of online grocery sales and on-demand food delivery services amid the COVID-19 pandemic.

In-store payments market in the Philippines

The COVID-19 pandemic has driven the adoption of touch-free payment methods such as QR codes and contactless payments among merchants, as consumers remain concerned about visiting stores. Meanwhile, retail stores have introduced new concepts designed to minimize human contact.

Buy now pay later payments market in the Philippines

Buy now pay later is gradually gaining traction in the country, with an increasing number of merchants, banks, fintechs, and payment providers now offering this service. The solution is becoming a payment alternative for consumers who lack a credit card. Buy now pay later is gaining popularity for ecommerce purchases, with major online shopping platforms such as Lazada and Shoppe offering installment payment options on their platforms.

Mobile payments market in the Philippines

Consumers use their mobile wallets for a variety of purchases, led by food and drink. As a result, retailers and restaurants are increasingly accepting payments via mobile wallets.

P2P payments market in the Philippines

Mobile banking apps are preferred for both domestic and international P2P transfers, primarily due to their convenience. Money transfer provider Western Union enables users to send money online via the internet banking platforms of Akbank, Garanti BBVA, Isbank, Sekerbank, and Yapi Kredi. Users can also send money via the Akbank, Garanti BBVA, and Isbank ATM networks.

Bill payments market in the Philippines

Cash is also widely used for utility bill payments in the Philippines, which is unsurprising given the country’s high unbanked population and cultural preference for cash payments. Convenience stores such as SM Supermarket, SaveMore, and 7-Eleven allow consumers to make utility bill payments in cash at their physical stores. Meanwhile, utility service providers allow customers to make online bill payments on their websites using options such as bank transfers and payment cards.

Alternative payments market in the Philippines

GCash, Maya (formerly PayMaya), GrabPay, ShopeePay, PayPal, Click to Pay, and Dragonpay are the alternative payments in the Philippines cards and payments market.

Which are the key payment instruments in the Philippines cards and payments market?

The key payment instruments in the cards and payments market in Philippines are cash, cards, credit transfers and cheques. Cash is the largest payment instrument in the cards and payments market in Philippines in terms of volume.

Philippines cards and payments market, by payment instrument

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Which are the key players in the cards and payments market in the Philippines?

The key players in the cards and payments market in the Philippines are Banco de oro, EastWest Bank, BPI, Metrobank, RCBC, Citibank, HSBC, Maybank, BancNet, Visa, Mastercard, JCB, and American Express.

Market report scope

Scope

The report provides top-level market analysis, information and insights into the Filipinos cards and payments industry, including –

• Current and forecast values for each market in the Filipinos cards and payments industry, including debit, credit and charge cards.
• Detailed insights into payment instruments including cash, cards, credit transfers, and cheques. It also, includes an overview of the country’s key alternative payment instruments.
• Ecommerce market analysis.
• Analysis of various market drivers and regulations governing the Filipinos cards and payments industry.
• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Filipinos cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in the Filipinos cards and payments industry.
• Assess the competitive dynamics in the Filipinos cards and payments industry.
• Gain insights into marketing strategies used for various card types in Philippines.
• Gain insights into key regulations governing the Filipinos cards and payments industry.