Philippines awards $861mn worth of T-bill, cash management bill offers

Manila, Philippines — By 2027, the Philippines is anticipated to retain Southeast Asia's sole significant market where cash-on-delivery (COD) constitutes over 20% of online purchases, despite a surge in digital payment adoption, according to Xendit, a financial technology company. In a report co-authored with market intelligence firm Cube, Xendit noted that COD represented around 23% of e-commerce transaction value processed through their Philippine platform, the highest proportion among six Southeast Asian markets.

Xendit anticipates COD to dip below 25% of e-commerce sales value across the region by next year, but the Philippines is projected to stay above this 20% threshold. Ina Gatan, Xendit Philippines head of go-to-market, attributed the sluggish shift away from COD to the country's larger cash-dependent consumer base, restricted access to banking services, and apprehensions regarding online transaction security.

Gatain hinted that the Philippines could achieve a COD share below 20% within a few years, though the timeline remains speculative. Valerie Cai, Xendit's head of marketing, concurred, suggesting the threshold might be breached in the next couple of years, contingent on regulatory advancements, enhanced payment accessibility, and evolving consumer habits.

The study, which polled 6,000 online shoppers across six Southeast Asian markets, encompassing 1,000 Filipinos, revealed that 33% of Philippine participants were utilizing COD less frequently than a year prior. However, 12% of Filipino respondents indicated no incentive to abandon COD, roughly twice the rate observed in most neighboring markets.

Discounts and cashback were identified as the most potent motivators for consumers to transition towards digital payments, although Xendit stressed that dependable refunds and fortified payment security would be essential to maintain this shift. Concurrently, transactions via QR codes and bank transfers surged by 198% between January 2025 and April 2026, primarily fueled by heightened adoption of QR Ph and InstaPay.

QR Ph accounted for approximately 13% of e-commerce value on Xendit's platform. E-wallet payments, on the other hand, expanded by a more modest three percent during the same period, partly attributable to the substantial share digital wallets already possess in online payments within the Philippines. Xendit also identifies cross-border e-commerce as a potential growth area, with the Philippines holding a nine-percent share of e-commerce sales in 2026, one of the lowest in the region, trailing only Indonesia's six percent.

This contrasts with 19% in Singapore, 15% in Thailand, 14% in Vietnam, and 12% in Malaysia. Xendit forecasts regional cross-border e-commerce to expand by 11-19% annually through 2030, contingent on regulatory developments and improvements in payment connectivity. As of 2025, the e-commerce market in Southeast Asia reached an estimated $197 billion, a significant increase from $3 billion in 2012.

Cube projects the market to surpass $400 billion by 2031 as more retail spending gravitates towards online channels.