QR code based Mobile payments gain popularity in Philippines

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Philippines is still a cash dominant country and only 1 out of 10 customers transact online via bank accounts even when half of the population is using internet. Majority of bank transactions occur by cash or cheque. However, it is also one of the fastest growing smartphone market in South-east Asia. Currently, there are around 55-60 million smartphone users in the country which is expected to reach around 105 million by 2021.  Mobile payment industry is flourishing in the country. Filipino mobile networks have set up their P2P payment systems and mobile wallets such as Google Wallet, Apple Pay and Samsung Pay are already accepted across organized retail.

Keeping up with this trend there have been certain developments in mobile payments segment of Philippines. Digital payment and mobile money service provider, PayMaya is expanding its cashless payment segment by introducing mobile payment technologies across various communities such as food stalls and lifestyle stores. I Since the beginning of 2017, it has been providing SmartSpots partner food parks with mobile POS terminals that facilitated MaterCard and Visa debit and credit card payments. In Q2, 2017, it rolled out Philippines’ first QR code enabled mobile payment system. The company continues to provide QR code payment facilities to merchants in SmartSpot locations which enables customers to make payments by scanning QR code through PayMaya app. Latest addition to the service range is Scan-to Pay feature. With this customers can make payments using the scanning feature of PayMaya app, while merchants can accept payments without POS terminal installation. Currently PayMaya app is available in Play Store or the App Store and can be loaded up across 15,000 reloading stations in Philippines, including SM Business Centers, Robinsons Department Stores, 7-Eleven with Cliqq Kiosks, and Petron stations. The application can be used across any telecom provider.

Another similar initiative has been taken up by telecommunication service provider Globe Telecom under its micro payment service GCash. It has launched QR payment service GoPay, which allows customers to make payments using QR code scan. Merchants can accept payments using their own GCash account, and this service targets roaming vendors and small local stores. GCash is compatible on both Android and iOS platforms and can be loaded across 12,000 partner outlets in the country. Alibaba's Ant Financial had invested in parent company of GCash, Mynt, in February 2017.

The mobile wallet market in Philippines in terms of transaction volume is projected to reach 1,446 million in 2021 from 284 million in 2017; recording a CAGR of 50.2%. The transaction volume increased from 92 million in 2015 to 165 million in 2016, posting a growth rate of 79.6%.

To know more and gain deeper understanding of mobile payment industry in Philippines, click here.