The Bangko Sentral ng Pilipinas (BSP) said that digital transactions now account for the majority of monthly retail payments in the Philippines.
According to its 2024 Report on the Status of Digital Payments, the central bank revealed that digital payments accounted for 57.4 percent of transaction volume and 59.0 percent of value. The data exceeded the government’s target of 52–54 percent under the Philippine Development Plan 2023–2028. “The latest findings from the 2024 Report on the Status of Digital Payments in the Philippines show that digital transactions now account for 57.4 percent of total monthly retail payment volume and 59.0 percent in value,” the BSP stated.
“These figures reflect the continued shift toward digital channels and the growing trust of Filipinos in using digital financial services,” the report added.
Digital transactions up
Three payment types—merchant payments, person-to-person (P2P) transfers, and business-to-business (B2B) transactions—accounted for 93.2 percent of all digital payments in 2024.
Merchant payments remained the top contributor, growing by 29.1 percent to 2.2 billion digital transactions and making up 66.4 percent of total volume. P2P transfers accounted for 680.5 million transactions, representing 20.6 percent of the total, a 34.7 percent increase year-over-year. The BSP attributed this growth to broader access to transaction accounts.
B2B supplier payments also increased, rising from 160 million to 205 million transactions, or a 28.1 percent annual increase. “This reflects the impact of the BSP’s digitalisation initiatives in the business sector,” the report noted.
Fast payments play a crucial role
According to the BSP, fast payment channels, such as InstaPay and PESONet, played a key role in the growth of digital transactions. InstaPay posted a 67.8 percent increase in transaction volume and a 46.3 percent rise in value, driven by demand for quick, low-value payments.
PESONet expanded its daily settlement cycle in July 2024, which helped boost supplier payments. “The addition of a third daily settlement cycle has boosted digital supplier payments,” the BSP noted.
“This is more than just a continuation of past gains. It is a reaffirmation of our collective vision, of a future where every Juan and Maria can access and benefit from secure, reliable, and convenient financial services,” Eli Remolona, Jr., BSP Governor, said while emphasising that progress in digital payments is part of a broader financial inclusion agenda.
BSP proposes separate bank accounts for online gambling
Meanwhile, in a move aimed at mitigating the risks of online gambling, the BSP has released a draft circular proposing the establishment of Online Gambling Transaction Accounts (OGTAs). The central bank stated that these would be separate digital wallets, governed by stricter controls, intended to prevent financial harm associated with impulsive gambling.
Under the proposal, payment service providers (PSPs) would restrict users from transferring only 20 percent of their average daily balance into OGTAs within a six-hour window. A 24-hour cooling-off period would apply once daily limits are hit. Users would also be able to disable their OGTAs to curb gambling activity temporarily. Lending features for these accounts would be permanently disabled.
Enhanced know-your-customer (KYC) procedures—including facial biometric verification and periodic re-verification—would be mandatory for all OGTA holders. In-app pop-up warnings would remind users of gambling risks, particularly for high-frequency users. Stakeholders have until 25 July to submit feedback on the proposal.
