BSP: Over half of retail payments went digital in 2023

Photo courtesy of Bangko Sentral ng Pilipinas Facebook Page

Over half of monthly retail payment transactions in the Philippines were done through digital channels, smashing the Bangko Sentral ng Pilipinas’ (BSP) expectations and boding well for the government’s financial inclusion goals.

Latest data released by the BSP on Tuesday showed the share of digital payments to total retail payment transactions in the country grew to 52.8 percent in 2023, from 42.1 percent in 2022. That means out of the 5 billion total monthly transactions recorded last year, more than 2.6 billion of them were successfully converted to digital form.

READ: BSP tightens merchant payment rules

It was a feat that blew away the expectations of the central bank, which was hoping to digitalize 50 percent of retail payments in the country by 2023.

The BSP said pandemic lockdowns that kept Filipinos in their homes for months and spurred the need for contactless transactions accelerated the shift to digital payments. Before the health crisis struck in 2019, the proportion of digital payments in the country was only at 14 percent. INQ