A lot has changed in the world of fintech since I started writing for Gadgets Magazine. It’s been one of the fastest-moving tech sectors over the past six years, marked by rapid innovation and widespread adoption.
Five years ago, I set out to try to live a cashless lifestyle, spending months relying solely on card payments, e-wallets, and app-based transactions. At the time, cash was still king, and digital payment options were niche, often buggy and inconsistent. What I discovered then was that the infrastructure was already in place, but something was still holding it back.
Fast forward to today: digital payments are now widely accepted and deeply integrated into everyday life. This shift was driven by several factors: the pandemic, increased recognition of fintech’s potential, and its seamless incorporation into daily routines.
The growth of fintech solutions, while initially gradual, accelerated dramatically during the COVID-19 pandemic. With physical distancing a necessity, e-wallets quickly became mainstream. What was once a secondary payment method began sharing the spotlight with cash.
Instant payments and real-time money transfers fueled not just major retail transactions but also everyday exchanges—small loans (utang), wages, and even quick overseas remittances. Government support played a key role, encouraging establishments to adopt e-wallets and other digital payment platforms to minimize physical contact.
Fintech’s Role in a Digital Economy
Fintech companies rose to the occasion, rapidly upgrading their infrastructure and features. E-wallets like Maya and GCash made integration with businesses easier. Banks waived transfer fees to promote cashless transactions, and e-commerce platforms expanded their payment options to encourage digital adoption.
Telcos also contributed to fintech’s growth. The rollout of 5G, which began shortly before the pandemic, provided faster and more stable mobile connections, addressing one of the early barriers to adoption.
The convenience of cashless payments helped cement fintech’s place in everyday life. First-time users during the pandemic continued using these platforms well beyond the crisis.
Beyond e-wallets, Online Lending Apps (OLAs) and micro-financing platforms became lifelines for Filipinos facing financial hardship. OLAs provided quick access to emergency loans, while Buy Now, Pay Later schemes allowed consumers to meet urgent needs without immediate payment.
Fintech and the Government
Government support has been instrumental in sustaining fintech adoption post-pandemic. The Bangko Sentral ng Pilipinas (BSP) set a target for 50% of retail transactions to be digital by 2023. That goal was surpassed, with digital payments accounting for 52.8% by the end of 2023 and rising to 57.4% in 2024, well above the year’s target.
One major initiative was QR Ph, a unified QR payment system that integrates various digital platforms and e-wallets into a secure, inclusive network.
More recently, the BSP approved the use of mobile NFC payment solutions. Banking apps now support tap-to-pay transactions in select retail stores using a phone’s NFC connection. GCash has also received approval to implement NFC payments within its app.
The BSP further allowed Apple Pay and Google Pay to operate their NFC payment systems in the Philippines without requiring registration with the central bank. These global platforms bring advanced security and convenience to local users.
Governmental Integration
Beyond the BSP’s initiatives, the broader government has embraced fintech in its operations. From internal disbursements to accepting e-wallet payments for government fees, fintech is helping streamline public services.
Fintech has also been integrated into eGovPH, the central government app designed to consolidate various services. Users can now pay taxes, renew licenses, and even settle traffic violation fees through e-wallets and online banking.
One of the most notable developments is the integration of digital payments into public transportation, including the Metro Rail Transit (MRT) and select bus routes—with more expected to follow.
Government adoption of fintech signals that the technology is here to stay. While its current role is largely focused on payments, the possibilities are expanding. Central Bank Digital Currencies (CBDCs) are being explored, and cryptocurrency is gradually being regulated as a financial asset.
The future remains uncertain, but one thing is clear: fintech will continue to evolve and play a vital role in our increasingly digital economy.
Words by Gabriel John Pe
Also published in GADGETS MAGAZINE Volume 26 Issue No. 2