Digital payments are transactions via digital or online modes, with no physical exchange of money involved. Digital Payments, considering their vast applications, have become a new standard, making people’s lives very much more manageable. Suppose you want to send money to Philippines; you should primarily use digital mediums to focus on this specific sector.
Digital Payments in the Philippines
Recently, the Philippines has seen rapid technological progress with a current Internet penetration rate of 60.7 percent. This opened up an array of possibilities for companies and services to prosper. The increase in digital payments is currently one of the most significant developments in the Philippines. Through that transition, the digital world was further stimulated, and the overall economy was added value.
Keeping in view the need for contactless payments, the COVID 19 Pandemic changed the digital payment environment in the Philippines. Digital payments enabled the government to provide financial support to the people in need during COVID-19, not just promoting trade.
Development of Digital Payments in Covid-19
The pandemic’s beginning led to mass downturns across the country, increasing the numbers of individuals to rely on contactless methods of money transfer to Philippines, to pay for vital goods and services. The digital payment ecosystem of the Philippines has achieved new heights with these accessible transaction facilities.
Although the pandemic has reduced trade globally, the increase in digital payments suggests that people move on to digital payment systems for their daily and business activities. This both encouraged financial inclusion and enhanced the hygiene activities of COVID-19 by restricting human contact.
Government Practices to enhance Digital Payments
The Philippines government estimates that about 7.7% of the nation’s population will be making payments through mobile financial services by 2021. There is enormous room for development in this sector, as many areas will benefit from such services. To promote such facilities, the government has taken several steps. These steps include numerous policies in the public and private sectors.
The government has introduced policies like Interoperable Digital Payment Platform, Disbursing Cash Aids through Mobile Financial Services, and various pro banking policies. This bridges transaction between the different participants of payment services, such as consumers, dealers, payment and receivable processors, payment processors, e-wallets, banks and financial institutions, payment system operators, and NGOs. Such pro-economy policies are helping the Philippines in becoming the top economies of the region.
Digital payments have increased the cash inflows in the country. The diaspora living abroad sends money to their loved ones. The revolution of digital payments has changed the dynamics of remittances in the country. Filipino diasporas now quickly send money to Philippines online to their home without any hassle using digital means.
This money helps the economy by currency inflows and makes people living in the Philippines relatively prosperous. The government is introducing pro-cash inflow policies to attract foreign currencies and investments. Being a non-industrial country, it is essential to consider and uplift the cash inflow sector. This can help them with their economy and industry development.
A lot of companies operating in the country offer remittance services, but a few of them are all-in-all; companies like ACE Money Transfer are helping the Filipino government get closer to their dream of a digital Philippines through services for online money transfer to Philippines.
The country is also facilitating the masses by offering a lot of bumper prizes and promotions. Other than this, ACE is a market leader when it comes to remittance services. Ace offers the best exchange rates and timely transfers.