A study conducted by global payments technology company, Visa, showed that more and more Filipinos are turning to their smartphone for mobile banking and payments.
Visa’s recent Consumer Payment Attitudes survey reveals that Filipinos are realizing the benefits of cashless systems with nearly three in four individuals utilizing a banking app on their phones, and more than half using mobile banking services at least once a week. It is further revealed that convenience and availability were the two top reasons why Filipinos are using mobile banking apps more frequently.
According to the study, the most common functions of banking apps are to check account balances (85 per cent); pay bills (63 per cent); and transfer money (59 per cent). It is also shown that 80 per cent of surveyed Filipinos stressed they would prefer using banking apps to check balances and pay bills over visiting a physical branch.
Moreover, sixty-five per cent of Filipinos have used their smartphones to make purchases. In terms of frequency, 41 per cent of them make mobile payments at least once a week. The top reasons for making mobile payments are convenience, ownership of smartphones, and security of mobile payments.
It is further revealed that six in 10 Filipinos have used on demand services such as booking transportation and ordering beauty services using apps in the Philippines. The trend seems to be higher for the emerging affluent at 70 per cent. The motives for shifting to on-demand services are due to convenience and efficiency, along with ease of shopping in the comfort of home.
The Philippines, which is still majorly a cash-based society, is taking huge strides towards having a cashless economy. Embracing this system allows for faster, more convenient and, contrary to popular belief, safer transactions. Generally, it also affects the economy positively—as producing paper or plastic money is quite costly. For these reasons, the government has launched its “cash-lite” agenda, which aims to reduce the use of cash over a span of 20 years. Visa’s study shows that the country is more than ready for this change.