An Overview of the Philippines Market and Preferred Payment Mode

Are you looking to launch your new online business in the Philippines? Yes! So, to establish your online business you ought to need a Payment Gateway in the Philippines.

One of the fastest-growing economies in Asia is none other than the Philippines. Online shopping has been a growing trend as approx 76.2 million customers continuously use the internet. According to some research, in the recent quarter, almost 62.5 % of customers purchase something online. So, you can say that it is the best place to establish an online business.

Of course, for your online business and to make more profit you need a payment gateway that fulfills all your business needs. Before going with any of the payment gateways, you need to know more about the Philippines market. Let’s have a look.

Overview of the Philippines online payment market

In the Southeast Asia region, the Philippines has the second largest population. Its contribution to retail sales is low as compared to the other countries. However, a combination of factors, including a young population, a growing middle class, better Internet connectivity, particularly through smartphones, and government initiatives, are paving the way for significant growth.

According to the publisher’s research, the Philippines would have surpassed Singapore and Malaysia in terms of total online retail sales. People between the age of 18 to 31 shop online in the Philippines.

Nowadays, online business is flourishing in the Philippines. You can say that in the upcoming few years it becomes the hub of online business. So, the one who wants to establish their business in the Philippines should take the action now.

Why do business owners need a payment gateway Philippines?

Nowadays, a nation’s ongoing digital revolutions. The most customer above the age of 15 prefers digital payment. So, a payment gateway is essential for any business owner in the Philippines.

From the recent research done by Bain & Company and Facebook, it is clear that approx 74% (approx 57 million) of customers in the Philippines have gone digital in 2020. 35% of Filipino customers say they purchase online most frequently.

It is expected that Southeast Asia’s average digital spending will climb 3.5 times between 2020 and 2025. To take the advantage of the online booming business in the Philippines, it ought to have the best payment gateway solution.

Popular and preferred payment method in the Philippines

With the rapid digital transformation in the Philippines, the merchant needs to provide the preferred payment method. Merchant has to provide both cash-based and cashless payment solution to reach more customer in the Philippines.

Here are some of the most popular payment methods which you can offer to your Philippines customers.

Cash on delivery –

Nowadays also most the customer prefer cash on delivery options. According to the Asian Development Bank report, almost 80% of e-commerce transactions are done via cash on delivery.

The reason behind this is most customers assume that if they make payments via e-payments, they have to face the following problems.

• Fraud – Receiving a different product as shown on the websites.
• Logistical issues – Receive damaged or lost products.
• Hacking – Making unauthorized transactions using the cards and stealing personal information.

With the cash-on-delivery option, customers can only pay once they receive the parcels. As they don’t have to share the card information with COD, they feel it is more secure.

On the other hand, for any merchant COD is not the ideal option. The possibility of getting refused to pay, get increases with COD orders.

E-wallets –

Over the last few years in the Philippines, there is a huge increase in the use of electronic wallets. The research done by the Bangko Sentral ng Pilipinas data shows that there are approx 8.8 million active e-wallets accounts in the Philippines. This figure means a lot for any business owner.

E-wallets have a great deal of potential to increase the customer for any business. Customers want more secure and convenient payments from their homes, this is the reason e-wallets become more popular. During the lockdown or COVID-19 pandemic, e-wallets services are seeing huge growth.

So, including the e-wallets in your payment method helps you to increase customer traffic.

Card payments –

In the Philippines, credit card usage is low, still, you should continue to accept card-based payments. As most of the customers who prefer online shopping are middle class or affluent, so provide your customer with the option of a credit card. This payment option is essential if you offer an installment payment plan as most customers choose credit cards for that.

Along with the credit card, you can also offer your customer to make the payment via debit cards. Approx 43 million ATM cardholders are there in the Philippines.

Bank deposits –

Gradually, the over-the-counter and online banking payment option is getting popular as it is a more safe and accessible payment option. The customer can either deposit at the bank or transfer the amount directly to the owner’s account.

Without an international payment gateway, this task is a little challenging as the customer has to send the screenshot of the successful payment (as proof)to the merchant. But with the payment gateway, the whole process will be done within a single click and the merchant can instantly receive a confirmation.

Remittance services –

Remittance service is one of the most basic payment methods in the Philippines. In this payment method, the merchant receives the payment before shipping out the parcels. Customers can make the payment in a hassle-free manner without any bank account, credit card, or e-wallets.

In this payment method, customers can visit any branch of the merchant’s bank and make over-the-counter payments.

QR codes –

QR code payment method is faster, more convenient, and more secure as compared to any other online payment method. To make the payment, the customer just needs to scan the code and enter the amount via smartphone.

It is one of the best payment solutions in the Philippines. Over the last few years, the QR payment method is seeing a high adoption rate.

Some points that you have to consider while choosing the payment gateway in the Philippines.

As there are several payment gateways available in the Philippines, it’s quite challenging to choose the best one. Before making any of the decisions, you ought to determine your business model such as –

• What functions does your business need?
• To gain more profit, you have to fix the target countries.
• According to your target countries, you have to work with that currencies.

Here are some points which you have to keep in mind while selecting the payment gateway Philippines.

• If you are targeting the international market, you ought to go with the international payment gateway and merchant account.
• Your payment gateway should be reliable.
• According to your target audience, you have to offer payment options.
• Your selected payment gateway can accept multi-currency.
• Make sure that your payment gateway has PCI DSS Level 1 security.
• The fee structure of the payment gateway is simple with no hidden charges.
• The selected payment gateway has excellent customer support services.

Right payment solution for any type of business – PayCly

Nowadays, a payment gateway plays an important role to make any business successful. Without a payment gateway, it is not possible to accept online payment. As you know, we are living in the era of digital payment. So, it is essential to have the best solution for any business.

PayCly is one of the best solutions. With PayCly, you can get all solutions in one place. As it offers a global solution, any business either high risk or low risk can easily get fit in it.

Let’s check some of the best features of PayCly –

• It offers the latest technology anti-fraud and security measures tools. It has PCI DSS level-1 compliance. As it offers a secure payment transfer solution, so the chargeback risks are limited on this platform.
• It is cost-effective.
• Its service is available worldwide and it can accept multi-currency.
• It offers various payment methods including alternative payment methods.
• It allows their customer to make payments via crypto-currency.

Summary –

The Philippines is one of the fastest growing markets so to establish your business in the Philippines you ought to know your customer preferred payment methods. Once you know your target audience and their preferred payment methods, it becomes easy for you to choose the payment solution for your business. Before going with any of the solutions it’s essential to know the best transactions fees structures.

If you are unable to make any decision and get confused among all the payment solutions then in this situation you can completely trust our preferred payment gateway and i.e. PayCly. It is one of the best payment solutions all over the masses at a reasonable rate. You can say that it is all in one solution which makes it best.