By means of Luisa Maria Jacinta C. Jocson, Reporter
THE VALUE of transactions through InstaPay and PESONet rose to P15.62 trillion at the end of November, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Transactions passed through the two automated clearing houses rose 35.2% in the January to November period, compared to P11.56 trillion in the same period a year ago.
Meanwhile, the combined volume of transactions via InstaPay and PESONet increased by 62.3% from 824.86 million to 1.34 billion.
Broken down, the value of PESONet transactions rose 28.3% to P9.09 trillion in November, compared to P7.08 trillion in the same period a year ago.
The number of transactions made through the payment gateway also increased by 10.2% from 83.3 million to 91.77 million.
On the other hand, the total value of transactions made via InstaPay increased by 46.2% to €6.54 trillion at the end of November, compared to €4.47 trillion the year before.
The volume of InstaPay transactions reached 1.25 billion in the January-November period, up 68.2% from 741.56 million the year before.
PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.
PESONet is suitable for high-value transactions and can be considered an electronic alternative to paper checks.
On the other hand, InstaPay is a real-time, low-cost electronic fund transfer facility for transactions up to P50,000, mainly used for remittances and e-commerce.
Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said the continued rise in the number of Instapay and PESONet transactions was due to the increasing preference for digital payments versus over-the-counter transactions.
“The continued strong year-on-year growth of InstaPay and PESONet transactions can be largely supported by and consistent with the continued strong growth of online transactions, which also reflects the shift from physical payments and queuing to the use of banking and other payment apps ,” he said.
Digital payments accounted for 52.8% of retail transaction volume in 2023, the latest BSP data shows, up from the 42.1% share in 2022.
This was also slightly higher than the central bank’s target of digitalizing 50% of retail payment volumes by the end of 2023.
In terms of value, 55.3% of retail transactions took place online last year, compared to 40.1% the year before.
Ronald B. Gustilo, national campaigner of Digital Pinoys, said this also reflects the “growing trust and convenience in digital payments.”
“The government’s initiatives to promote financial inclusion and digitalization created an enabling environment, while fintech companies and banks offered easy-to-use digital payment platforms,” he said in a Viber message.
“The audience’s shift towards digital-first solutions, driven by tech-savvy youth and increasing smartphone penetration, has also helped increase the use of digital payment platforms,” he added.
Mr Gustilo said e-payments are here to stay amid improved digital infrastructure, wider internet access and greater public awareness of the shift to cashless payments.
“However, tackling digital fraud and ensuring inclusivity will support this momentum,” he added.
The central bank wants online payments to account for 60-70% of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan.