The Globe Group maintains a positive outlook on the country’s economic future, largely attributed to the increasing popularity of digital payments over the last five months.
The surge in the adoption of digital payments coincides with the steady easing of inflation rates, which contributes to an increase in consumer purchasing power. This, combined with a drop in unemployment numbers, creates an environment conducive to economic growth.
Digital Payments Transformation Roadmap
Under the Digital Payments Transformation Roadmap, the Bangko Sentral ng Pilipinas (BSP) aims to shift 50% of total retail transactions to electronic channels. It also plans to increase the number of Filipino adults who use these services to 70% before the end of this year.
Based on the central bank’s 2022 Status of Digital Payments report, the share of digital payments in total retail transactions in terms of volume accelerated to 42.1%, or 2.04 billion, last year. This was up from 30.3% or 1.43 billion in 2021.
“This development bodes well for the country’s continued economic recovery. The shift to digital payments means faster and more convenient transactions, real-time cash flow for merchants and quicker movement of goods and services, which all redound to a more vibrant economy. We at the Globe Group are ready to support this growing shift with our suite of digital solutions,” said Ernest Cu, Globe Group President and CEO.
Globe Group digital solutions
As part of its expansion to a full-fledged tech enterprise, the Globe Group has been bringing digital solutions pivotal in accelerating digital adoption in the finance space.
As early as 2017, Globe enhanced the capabilities of its electronic wallet GCash to address the issue of access to financial services. In partnership with global shareholders like Alibaba’s Ant Financial, GCash gained general expertise and technologies to expand its reach. Since then, the e-wallet has become the Philippines’ first double unicorn and No. 1 finance super app, with millions of users, including customers and merchants, utilising the platform for their digital transactions.
Globe’s eCommerce platform RUSH has reached 6.6 million registered users and digitally-enabled sellers in over 7,000 locations across the country. Meanwhile, leading e-payment service provider Electronic Commerce Payments Inc. (ECPay) has grown to a general trade retail base of more than 460,000, with 20,000+ physical touchpoints and almost 100 digital channels via our Modern Trade partners. ECPay also has 900 self-service payment machines offering bills payment, cash-in and prepaid electronic load nationwide. IN Q1 2023, ECPay was the biggest non-telco contributor to Globe’s topline.
“At Globe, we’re deeply committed to empowering our country through technology. We’re poised not just to help the government meet its goal in terms of digital payments but also to lead the way in shaping an inclusive, progressive retail payment landscape that thrives on innovation and accessibility,” said Cu.
Related article: Digital payments are rising in ASEAN but profits remain elusive