A guide to payments in The Philippines.
The Philippines is one of the most mobile — and arguably most under-estimated — ecommerce markets in Southeast Asia.
As the second most populous country after Indonesia in the Southeast Asia region, the Philippines’ ecommerce market can expect an annual growth rate of 101.4% from 2013 until 2018, driven mainly by heavy internet usage and high mobile penetration.
The internet penetration is under 50%, and the majority of the population is still under-banked, or even unbanked.
Conversely, Filipinos have long been among the most prolific mobile users in the world.
These market and demographic factors have a number of implications for how Filipinos prefer to pay online.
The majority of ecommerce transactions are made with cash-on-delivery and bank transfers (estimated at 30-70% depending on business and vertical) and the market is also notable for its low level of credit card use and rapid growth in mobile as a payments channel.
Both the current size and growth potential of the ecommerce market are impressive. Because cash transactions cannot be easily tracked, analysts often under-estimate the size of the current opportunity.
Looking to the future, internet use is growing at some of the fastest rates in the world and 70% of Filipino internet users are 15-34 years old.