According to the most recent Visa Consumer Payment Attitudes Study conducted in the Philippines, the growing popularity of cashless payments, especially through mobile wallets and cards, has led to a significant reduction in the willingness of Filipino consumers to use cash. The study reveals that 50% of Filipino consumers now carry less cash as they increasingly embrace cashless payment methods.
Although cash is still widely used, the study indicates that 82% of Filipinos attempted to adopt cashless payments in 2022, with nearly half (40%) successfully going cashless for a few days. Notably, around 9% managed to stay cashless for over a month.
The research conducted by Visa also highlights a decline in the frequency of cash payments, dropping from 7.8 out of 10 purchases in 2021 to 6.4 in the following year. This shift can be attributed to two significant factors: 62% of consumers are relying more on cashless payments, and 61% have expressed concerns about the safety of carrying cash.
Visa’s Consumer Payment Attitudes Study is conducted annually to provide insights into consumer payment behaviors in key markets, including the Philippines. The latest survey was carried out from September to October 2022 and involved interviews with 1,000 Filipino consumers aged between 18 and 65 years old.
“The increasing adoption of cashless and contactless payment methods is a testament to the growing preference among Filipinos for safe and convenient transactions. As consumers realize the benefits of cashless options such as mobile wallets and cards, we are witnessing a progressive shift towards a cash-lite society in the Philippines. The Visa Consumer Payment Attitudes Study provides encouraging data that highlights the readiness of Filipinos to embrace secure and seamless digital payment solutions,” according to Jeff Navarro, Visa Country Manager for the Philippines and Guam during a press briefing in Makati City.
Technological advancements and the COVID-19 pandemic have led to a growing acceptance of alternative payment methods among Filipinos, such as contactless cards and QR codes. Contactless card payments have surged from 27% to 37%, with almost two in five Filipinos now using them. They express a strong likelihood of choosing contactless cards for the majority of their transactions. QR code usage has also experienced significant growth, increasing from 36% to 53%, especially among the Affluent and Gen Z segments. Interest in QR codes has soared from 67% to 93% among Filipinos. In addition, the modernization of transportation has driven the adoption of contactless transit cards, which now stand at 73%, as Filipinos appreciate the benefits of faster transactions and reduced reliance on cash.
“The data from our latest Consumer Payment Attitudes Study is encouraging, as it brings us closer to a cashless Philippines. We anticipate that cashless and contactless payment methods will continue to gain prevalence in terms of awareness, interest, and usage. Visa is committed to continue educating and ensuring with all stakeholders that Filipinos have secure, seamless, and convenient digital payment solutions readily on hand,” added by Navarro.