Baguio City – An increasing number of business owners in Baguio City's public market are adopting digital payments, making strides in the country's shift towards a cashless economy.
According to a news release by the Philippines News Agency, 60% of traders in the market now offer digital payment options like GCash and PayMaya through quick response (QR) codes.
Rodora Teresa Openiano, bank officer at the BSP North Luzon Regional Office, said in a Wednesday press conference that the use of digital payments in the market has been supported by the Paleng-QR Ph initiative. Piloted in Baguio City in 2022, the program was expanded into Paleng-QR Ph Plus to include more participants. It is part of the central bank’s broader initiative, undertaken with the assistance of the Department of the Interior and Local Government, to promote digital payments nationwide.
Openiano stated that businesses offering this payment option have QR codes visibly displayed in their stores. The payment system is particularly useful in Baguio City, known for its tourism, as it offers an easy payment alternative for visitors who might not be carrying much cash.
Results from a nationwide survey conducted by the central bank in 2021 indicated that there were 27.5 million Filipinos with online financial accounts. The same survey revealed that 56% of adults, or approximately 42.9 million individuals, have online financial accounts. This number is significantly higher than the 20.9 million Filipinos, or 29%, recorded in a similar survey conducted in 2019.
The majority of these online accounts are electronic money (e-money) accounts, and Openiano said the prevailing trend suggests that these accounts are being used more for payments rather than just savings. As of 2022, digital retail payments make up 42.1% of total payments in the country.
In view of these developments, the BSP aims to further boost the adoption of digital payments, targeting an increase in the share of digital payments to 50% of the total by the end of 2023.