Nearly 60% of retail payment transactions in the Philippines were conducted through digital channels in 2024, according to the Bangko Sentral ng Pilipinas (BSP), marking a significant milestone in the country’s transition to a cash-lite economy. The shift has not only exceeded government targets but also signalled broadening public trust in digital financial services.
Official data from the BSP revealed that digital payments accounted for 57.4% of total retail transaction volumes last year, rising 4.6 percentage points from the 2023 level of 52.8%. This outperformed the national target of converting between 52% and 54% of retail transactions to digital by 2024.
In terms of transaction value, digital payments reached US$136 billion monthly on average, comprising 59% of the country’s total retail payment value. BSP Governor Eli Remolona Jr attributed the continued growth to an increasing adoption of interoperable payment systems, mobile banking platforms and e-wallets, which have expanded access to financial services.
“These figures reflect the continued shift towards digital channels and the growing trust of Filipinos in using digital financial services,” Remolona commented. “We continue to promote enabling technologies that serve as bridges to greater financial inclusion.”
Data from the Bank of International Settlements supports the broader economic impact of such a shift, suggesting that a one percentage point increase in digital payment usage correlates with a 0.10 percentage point rise in GDP per capita and a 0.06 percentage point reduction in informal employment.
The BSP’s report highlighted that 97.2% of government transactions were executed digitally, representing the most cash-lite segment among the central bank’s three primary use-cases. Nearly all payments related to government activities—including capital transfers, procurement, payroll and social welfare disbursements—were processed electronically.
Among individual users, the share of digital payments climbed to 72.2%, accompanied by a decline in the use of cash. The most notable driver of growth in digital retail payments continued to be transactions between businesses and consumers, with 66.4% of merchant payments processed electronically.
Person-to-person electronic fund transfers also expanded their share, contributing 20.6% of total digital transaction volume, up from 19.3% in 2023. Meanwhile, business-to-business transactions represented 6.2% of digital volumes, reflecting what the central bank described as modest growth.
BSP Deputy Governor Mamerto Tangonan reaffirmed the institution’s commitment to maintaining consumer protection and systemic stability as the payments landscape evolves. He stressed that the regulator’s approach to innovation would remain vigilant and adaptive.
“Even as we pursue this goal, we are cognisant of the risks,” said Tangonan, who leads the central bank’s payments and currency management sector. “Safety in payments, whether digital, physical or cross-border, is non-negotiable. We are committed to having a regulatory environment that is vigilant, agile and informed—one that works alongside innovation, not to stifle it, but to guide its responsible use.”
The BSP’s next milestone is to digitise between 60% and 70% of retail payments by 2028.
