Digital payments now make up 64.7% of Philippines retail transactions
Digital payments accounted for 64.7 percent of total Philippine retail transactions by volume in 2025, up from 57.4 percent a year earlier as the shift toward electronic payment channels continued to gain ground, according to the Bangko Sentral ng Pilipinas.
In 2025, digital payments in the Philippines made up 64.7 percent of total retail transactions by volume, a notable increase from 57.4 percent the previous year. This trend reflects the ongoing shift towards electronic payment channels, according to the Bangko Sentral ng Pilipinas (BSP). BSP Governor Eli Remolona Jr. attributed the growth to the central bank's focus on interoperability, ensuring that more businesses and service providers adopt a single system.
This approach has attracted more users, enhancing the network's value for consumers, businesses, banks, e-wallets, and other platforms.
The BSP's Deputy Governor Zeno Abenoja revealed that digital payments exceeded the central bank's target of 50-54 percent in 2024. The adoption of digital payments has surged from just 20.1 percent in 2020, rising to 30.3 percent in 2021, 42.1 percent in 2022, 52.8 percent in 2023, and finally 57.4 percent in 2024. This growth was driven by a 69.4 percent increase in digital payment accounts and a 36.3 percent rise in merchant locations accepting digital payments.
For the first time, QR Ph transactions surpassed debit and credit card transactions in 2025, amounting to 2.47 billion transactions worth P1.16 trillion.
Abenoja highlighted that wider adoption of digital payments creates network effects, as more participants contribute to a more valuable financial ecosystem. The number of basic deposit accounts reached 27.9 million by March 2025, up from 27.6 million at the end of 2024 and 25.8 million in 2024. 177 banks offered basic deposit accounts as of March. The BSP also encourages lower interbank digital transaction fees to make electronic transactions more affordable and accessible to households and small businesses.
Despite expectations of easing inflation pressures, the BSP anticipates inflation averaging 6.4 percent in 2025, slowing to 4.5 percent in 2027 and 3.1 percent in 2028. The central bank's target remains at 3 percent. Factors expected to influence inflation include easing global oil prices and the cumulative 50-basis-point increase in the BSP's policy rate this year.
However, risks like global oil prices and the impact of El Niño, which may intensify from the fourth quarter of 2025 to the first half of 2027, remain concerns. The Monetary Board will meet to decide on the next policy action.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
