Most Filipino online shoppers, two out of three, prefer to use e-wallets to pay for their purchases and mobile payment transactions are expected to grow ninefold.
This was according to the most recent Online Payment Sentiments survey of Vesta, the end-to-end transaction guarantee platform for online purchases.
The survey covered more than 4,300 respondents across the Philippines, Singapore and Indonesia.
The country's large unbanked population and low credit card penetration makes people favor the use of e-wallets.
However, almost half (47%) of respondents encountered payment problems in the last 12 months, according to the survey.
Across all payment methods, multiple verification and authentication is a top payment problem faced by one in three (33%) of respondents.
Also,one in five (22%) online shoppers surveyed had their payments declined without valid reasons.
Payment friction can frustrate customers who already buy from multiple brands and will not hesitate to shop at another site that offers a smoother online shopping experience.
Almost six in 10 (57%) online shoppers in the three countries would stop shopping at the eCommerce site should they encounter a problem when making a purchase.
More than half (54%) of those who have faced a payment problem when making an online purchase would also warn their family or friends about the merchant or eCommerce site, resulting in further potential losses in revenue for the merchant.
With an increasingly tech-savvy population where people look for security in positive reviews, the survey also found that approximately seven in 10 (69%) online shoppers rely on past reviews from previous buyers to determine if a site is secure to purchase from.
This underscores the impact that a negative payment experience can cause on the merchant’s business in a competitive eCommerce industry.
“The Philippines has the second largest internet penetration in Southeast Asia and more than 80% of the population on social media," James Melon, Vesta, Country Director, Philippines, pointed out.
Hence, ensuring a positive reputation online is important to a businesses’ success.
"Our survey also found that a significantly higher percentage (73%) of online shoppers in the Philippines rely on past reviews to determine the security of an online site," he noted.
For this reason, "There is a need to work closely with merchants to strengthen its fraud identification capability to improve overall customer journey and trust, as well as the merchants’ reputation. This will help drive further growth in the Philippines’ eCommerce hotbed.”
“In burgeoning eCommerce and mCommerce markets like the Philippines, merchants and customers are increasingly vulnerable to false declines, fraud and poor payment experiences," stressed Shabab Muhaddes, Vesta, General Manager, Asia Pacific.
"Our survey revealed that safety and security remains a top concern among online shoppers and there is an unspoken expectation of merchants to put in place the right solutions."
Furthermore, shoppers see the hassle of multiple verification and authentication as a top payment problem.
"Overall, this survey indicate a need for solutions that protect against fraud and drive higher approvals while enabling a seamless consumer payment experience,” he observed.