THE country could become a cashless society sooner than expected due to the increased use of digital payment systems during the pandemic, according to the latest study from Visa Philippines.
During a presentation on the occasion of the 42nd anniversary of the Credit Card Association of the Philippines (CCAP), Visa Philippines country manager Jeffrey Navarro said that 7 out of 10 Filipinos now expect the country will become a cashless society within a decade.
Navarro noted that’s higher than the 6 out of 10 of respondents in his previous consumer payment attitudes survey results. Study respondents included 1,000 Visa users nationwide.
“Covid has accelerated the Philippines’ transition to a cashless society by at least three years,” Navarro said. “As digital and contactless payments are increasingly becoming a norm for many people, Visa continues to work hard and work with each of you and with the CPAC organization to increase adoption and usage under its various forms and methods towards our shared cashless society.”
Navarro said the median year most Filipinos are expected to go cashless is 2027, three years ahead of expectations.
In Navarro’s presentation, around 7% of Filipinos are already cashless. But some 38% are expected to favor digital payments between 2021 and 2025, with another 27% between 2026 and 2030.
Another 9% are expected to be cashless between 2031 and 2035, while 12% are expected to be cashless beyond 2035. Only 7% are expected to never be cashless.
“The main benefits that consumers see in cashless are: first, it’s really about hygiene and it’s to prevent the spread of infections. The second is about convenience as cashless has no worries and finally it is about quality which is the ability to follow financial records easily, so it is forecasting,” explained Navarro.
Navarro said the majority of Filipino consumers have tried to go cashless. Some 84% have tried going without cash, while 16% have never attempted to do so.
He noted plans to make cashless cuts across generations, from baby boomers to GenZ. It also crosses socio-economic classes as mass and affluent Filipinos have tried to go cashless.
Navarro also said 47% of those who tried going cashless were able to do so for as little as a week to as long as more than a month. Some 36% were able to go without cash for a few days and 17% did so for one day.
“The majority of consumers have attempted to go cashless, and further growth is expected as non-user confidence grows,” Navarro said in a presentation.
In terms of goods and services, the majority or 62% of Filipinos who shopped cashless used popular shopping apps and websites, while 46% shopped on social media.
Some 45% shopped with direct-to-home delivery after ordering via mobile phone and 20% shopped at physical outlets.
