There is a sudden shift in consumer behavior among Filipinos with the pandemic accelerating this emerging trend and new way of shopping in the new normal. More Filipinos now are using eCommerce platforms for the very first time. The activities include purchases from online marketplace and home-based online businesses which increased the usage in home delivery service.
About 93% of Filipinos have increased their shopping activities in websites and mobile apps. Out of the 70% consumer population who shop online, 43% are now shopping on social media channels for the first time.
These statistics are included in the latest Visa Consumer Payment Attitudes study which says more Filipinos used eCommerce and contactless payments during the pandemic.
“The pandemic has transformed the way Filipinos shop and pay. Based on the latest highlights from our annual Visa Consumer Payment Attitudes study, we see adoption of new consumer behaviors, including more Filipinos using digital commerce platforms and helping to accelerate the usage of digital payments in the country. Based on Visa’s data, we see double digit growth for eCommerce transactions for purchases on marketplaces and digital goods. In addition, one in four active Visa cardholders made their first eCommerce purchase during the first half of last year. Categories that they made their initial purchases include food & groceries, bill payments and pharmaceutical products,” said Dan Wolbert, Visa Country Manager for the Philippines & Guam.
Visa’s Consumer Payment Attitudes study explores how the pandemic has shaken the world, changing the behavior of Filipino consumers amid strict lockdown protocols. Based on its results, many Filipinos have shifted their shopping habits through digital platforms. In fact, 1 in 2 Filipinos shopped online through apps, websites, and social media during stricter lockdown protocols.
The new preferences of the Filipinos during the pandemic showed a glimpse of what the future of shopping can be. It reveals that 53 percent of consumers shopped at large online marketplaces, while 61 percent did the same with online home-based businesses.
In terms of categories, Filipinos see bills payment (81%), grocery shopping (71%), and overseas travel (68%) as among the top purchases for completely cashless transactions.
These current consumer behaviors are attributed to the benefits and convenience that Filipinos are experiencing while shopping through online and eCommerce platforms using cashless payment methods during the ongoing pandemic.
Top Benefits of Contactless Payment
No need to carry cash – The study shows that 88% of Filipinos are now interested in trying out contactless payment methods. Before the pandemic, 7 out of 10 payments were made with cash. Current usage decreased to 5 out of 10 and this is reflected among the 53% Filipinos who carry less cash in their wallets.
Other countries in Southeast Asia observed a similar trend in the decrease in cash usage.
Safe from infection – 75% of Filipino consumers believe that digital payments can help curb the spread of infection. This behavior also led to the surge of home delivery purchases from 93% of Filipinos who prefer staying at home instead of going out to malls and supermarkets.
Innovative payment method – 68% of Filipinos are attracted to innovative payment methods that online shopping offers. sixty three percent were able to track their financial records and reported a lower percentage in risk of theft.
“Based on Visa’s data, contactless transactions have been increasing steadily month-on-month in the Philippines since August last year. We believe that contactless payments will continue to grow as Filipinos appreciate the benefits of contactless payments, including perceiving this payment method to be more hygienic due to the absence of physical interaction at point-of-sale. Even though we’ve made progress in digital payments adoption, there remains huge opportunities for us to encourage more Filipinos to embrace digital payments as we look to expand digital payments acceptance across the country,” added Wolbert.
In addition, the world’s leader in digital payments launched its #WhereYouShopMatters campaign which enables and supports local businesses. At the same time, Visa started the #LifeIsBetterCashless campaign to encourage consumers to shift to digital payments.
#WhereYouShopMatters
#WhereYouShopMatters, or simply #WYSM, is Visa’s exclusive initiative to encourage all people around the world to think about the positive impact their shopping can have on small and local businesses. Through this initiative, local businesses will have the opportunity to boost their digital footprint to find more customers online.
Visit https://www.visa.com.ph/run-your-business/small-business-tools/whereyoushopmatters.html for more details.
#LifeIsBetterCashless
Visa believes that life is much better with the convenience, security, and safety that their solutions bring. Compared to cash, cashless payments are more secure and convenient, freeing up people’s time and giving them more chances to enjoy life and what really matters.
#LifeIsBetterCashless is the consumer’s gateway to a wide variety of offers and deals, including travel, food and wine, dining, shopping, sports, entertainment and more. Know more about #LifeIsBetterCashless campaign at https://www.visa.com.ph/pay-with-visa/lifeisbettercashless.html.