THE accelerated digital shift has been a boon for the e-commerce sector as more Filipinos buy goods online for the first time via cashless payments, according to a study by financial service company Visa.
Dan Wolbert, Visa country manager for the Philippines and Guam, said in an online briefing last Thursday Filipino consumers have been adapting to the “new normal” by maximizing e-commerce platforms during lockdown measures. This is a conclusion based on Visa Consumer Payment Attitudes study.
“More Filipinos are using e-commerce for the first time to make purchases,” he said, noting that one of two respondents or 52 percent are shopping online through applications and websites for the first time. Meanwhile, 43 percent purchased via social media channels for the first time.
Nearly nine out of 10 consumers claimed they increased their online shopping activities through websites and apps while seven out of 10 Filipinos do their online shopping via social media channels.
More than 50 percent of Filipinos are buying at large online marketplaces, according to Visa’s poll. Majority or 61 percent of the respondents are purchasing goods from home-based businesses.
The study revealed as well that 34 percent of the Filipinos will still buy their necessities and other goods through e-commerce platforms even after the pandemic.
“[We] see adoption of new consumer behaviors including more Filipinos using digital commerce platforms and helping to accelerate the usage of digital payments in the country,” Wolbert said.
The Visa official explained that increase in e-commerce purchases has resulted to surge in home delivery as well, as claimed by 67 percent of the respondents. Nearly nine out of 10 Filipinos are using home delivery services, the study added.
With more Filipinos buying items online, Wolbert observed that cash usage has decreased in the country. Over 50 percent of the respondents said they carry less cash in their wallets.
Cash usage also went down to five out of 10 from 7 out of 10 consumers prior to the pandemic. Wolbert said this is a trend seen across the Southeast Asian region.
Among the reasons for the decline in cash usage is that 73 percent of the respondents said they were using contactless payments instead via mobile wallets. Half of the respondents also said that there has been wider acceptance of cashless payments.
Three-fourths of the Filipinos surveyed believe that digital payments can help in containing the spread of Covid-19. Respondents also cited convenience, lower risk of theft and ability to track financial records as reasons behind supporting cashless payments.
“They [contactless payments] are increasingly adopted by the consumers, especially during the pandemic as they are more cautious of physical hygiene,” Wolbert said. “Contactless payments allow consumers to hold their cards in their hands, tap against the payment terminal without any physical interaction at the point of sale, which is making this a preferred payment option during the pandemic.”
Filipinos agreed that they can completely transact via contactless payment terminals for bills payment (81 percent), grocery shopping (71 percent) and overseas travel (68 percent).
With this, 66 percent said they have increased the use of contactless payments because of the lockdown measures amid the pandemic while 88 percent expressed interest to try this payment method.
The study was conducted in August and September last year through an online questionnaire. Respondents came from Manila, Cebu, Cavite, Quezon, Laguna, Rizal, Bulacan, Davao del Sur, Pampanga, Negros Occidental, Batangas, Cagayan de Oro, Iloilo, Baguio and Davao, among others.
Earlier this year, the Department of Trade and Industry said it aims to boost the contribution of the e-commerce industry to P1.2 trillion by 2022, which is equivalent to 5.5 percent of the country’s gross domestic product.
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