Going cashless: E-payment as a boon to businesses, individuals

THE shift to digitalization has revolutionized the way businesses around the world operate.Despite the risks that have come with technology, which called for careful use and management, one could not discount the fact that tools such as digital payments have been a trailblazer in facilitating transactions, particularly when the Covid-19 pandemic made contactless interactions essential.Even after the pandemic, many businesses and consumers continued relying on cashless payment methods for its convenience.The 2023 E-Payments Measurement Report of the Bangko Sentral ng Pilipinas (BSP) has highlighted a substantial increase in digital payment adoption in the Philippines with its share on retail payment transactions surging from just 1 percent in 2013 to 52.8 percent by volume in 2023 and 42.1 percent in 2022.The report indicated that merchant payments dominated the electronic payment (e-payment) market, accounting for 64.9 percent. This wasfollowed by person-to-person payments at 19.3 percent with business-to-business supplier payments coming in third at 6.1 percent.More specifically, according to Statista Market Insights in March 2024, digital commerce was the largest contributor to digital payment transaction value in the Philippines, reaching an estimated total of $37.68 billion for 2024. Mobile point of sale or PoS payments followed as the next largest segment while digital remittances ranked third. These patterns were projected to continue through 2028.The digitalization of half of the country's retail payment transactions today was aligned with BSP's Digital Payments Transformation Road Map 2020 to 2023.Electronic and online transactions allowed for quick and easy management of finances for entrepreneurs and consumers. Whether for online shopping or bills payment, everyone could effortlessly pay anytime and anywhere they wanted and need. The added benefit of having a digital trail or copy of receipts further reduced the risk of misplacing important records.E-payment referred to transactions made using debit and credit cards, wire transfers, online banking, digital wallets or mobile payment apps. E-payments helped speed up the transaction processes compared to traditional payment methods such as checks, helped businesses cut administrative costs through less paperwork and offered customers flexible payment options. This, in turn, bridged enterprises to a wider customer network. Paperless payments or transactions helped not just business owners and consumers but the environment, too.E-payments could enhance business competitiveness, particularly as the trend toward consumers preferring cashless payment methods continued to grow.Moreover, a secure online transaction process could protect both consumers and business owners from fraud, as it allowed both sides to validate the legitimacy of the transaction.As more and more businesses adopted digital solutions, a growing number of Filipino consumers were also showing a strong preference for digital payments. Enterprises of all sizes — small, medium or large — had the opportunity to embrace this trend moving forward.Adapting to these modern solutions helped businesses stay relevant and in sync with the needs of present and future generations, ensuring they expanded more effectively without falling behind as consumer preferences and technologies evolved.