Cashless payments in the Philippines continue to gain momentum as more consumers shift away from the use of cash to credit card and mobile wallets usage, the latest Visa Consumer Payment Attitudes Study revealed. 

Based on the study, there was a notable decline in cash usage to 87 percent in 2023 from 96 percent in 2022. The study covers payment behaviors of Filipino consumers when it comes to digital payments, digital banking and the future of commerce. 

The latest edition is in its 10th year running and was based on interviews conducted in October to November 2023 with 1,000 Filipino consumers aged 18-65 years old, spread across different cities/regions and income brackets, with the minimum monthly income being P12,000.

Jeff Navarro, Visa country manager for the Philippines, during the study presentation noted that specifically, card payments usage was at 70 percent (including swipe/insert, online, and tap-to-pay/contactless payments) in 2023, while mobile wallets usage stood at 87 percent, on par with cash transactions.

“We've raised significantly with the use of mobile devices for payment and the use also of cards for payment,” he said. He further noted that the increase in cashless payment only showed that it has become as convenient as using cash. 

“In the past, it's always been cash. That's been very dominant in terms of the usage pattern. Now what we're seeing is mobile payments already matched the level of cash,” he added.

The increase in cashless payment was driven by the younger (Gen Z and Gen Y) and more affluent segments. Filipino consumers are increasingly embracing cashless transactions, going without cash for an average of 10 days. 

Notably, 43 percent of Filipinos who were surveyed now carry less cash in their wallets mainly due to the growing consumer habit of using cashless and contactless payments, alongside the increasing acceptance of cashless payments among stores and merchants.

In terms of categories, the study showed that supermarkets got the biggest share (88 percent), food and dining (86 percent), and bill payments (82 percent) as leading merchant categories that consumers observed to have opened up acceptance of cashless payment methods compared to a year ago.

“Filipinos are becoming more comfortable with cashless payments, and we are confident that they will continue to embrace new innovations in the digital payment landscape,” said Navarro. 

The study further revealed of growing acceptance and usage of contactless payments among Filipinos. 

Contactless payments – including contactless cards, QR codes, and mobile wallets – are driving the growth of cashless payments in the country.

According to the study, about nine in 10 Filipinos are aware of and interested in using contactless cards and QR codes when paying for their transactions. 

Based on the study, 32 percent of Filipinos used contactless cards for their payments in 2023, mainly driven by the affluent population. Meanwhile, 55 percent used QR codes, with at least 50 percent  adoption across age groups except for consumers aged 59-65 (31 percent).

Among mobile wallet users, paying through QR codes is the most preferred method for 38 percent of consumers, making mobile wallets the most preferred funding source for QR payments. Scanning the QR code in-store is the preferred mode of payment by 78 percent of its users.

When travelling overseas, Filipinos prefer to use cards for cross-border payments, where 55 percent of consumers prefer debit and credit cards for the convenience, time savings, and hassle-free user experience. 

An emerging trend is the use of QR codes for cross-border payments, with 37 percent of Filipinos currently aware of and have tried using it. Meanwhile, 69 percent of those who have not tried it have expressed interest in using it in the future.

With the shift to digital forms of payment, 52 percent of consumers are confident to go without the use of cash, and rely on cashless payment methods entirely for at least a week. Moreover, the study said that one in three consumers (37 percent)  believe that the Philippines will be a cashless society by the year 2030 – if not sooner. 

“Our study shows that the cashless wave is maintaining its momentum in the Philippines. We are  moving closer to achieving a cashless Philippine society, but we still have some way to go,” said Navarro. 

“Visa remains committed to ensuring a seamless transition to a cash-lite society by providing secure and convenient digital payment solutions,” he added.