The Philippines has seen a surge in ecommerce growth, with online sales projected to reach $24 billion in 2025. The country has become a promising destination for businesses that want to expand. Recognizing the prevalence of local mobile payment methods can help businesses tap into this developing market.

Below, we’ll cover the tactics any business can use when beginning to accept payments in the Philippines, including:

• Prioritizing digital wallet payments
  
• Improving customer communications
  
• Protecting digital payment data
  

The state of the market

The Philippines consists of more than 7,000 islands, presenting challenges and opportunities for payment distribution and access. The Philippines still relies on traditional payment methods such as cash, especially considering roughly 50% of Filipino adults had a formal financial account in 2024. Nevertheless, adoption of digital and electronic payments is increasing, especially in urban areas. Mobile payment methods in particular are common, letting customers transfer Philippine pesos, pay bills, and purchase goods and services using their mobile devices.

The Bangko Sentral ng Pilipinas (BSP) leads the country’s monetary and banking system. Reestablished in 1993, the BSP is the central monetary authority responsible for providing policy direction in areas concerning money, banking, and credit. The BSP oversees the operations of banks and regulates nonbank financial institutions, and it aims to promote a safe, effective electronic retail payment system, recognizing the growing role of digital payments in the economy.

Payment methods

Filipino customers use a range of traditional and modern payment methods. Here are some of the most popular options:

Usage

In a 2022 Visa study, 92% of Filipino respondents reported using cashless payment methods, highlighting technology’s impact on payments in the country. But 49% of Filipinos reported the same year that they preferred to pay with cash, compared with 13% who preferred digital wallets. Some users are turning to local digital wallets such as GCash and PayMaya, and the introduction of QR codes for transactions or money transfers has made these platforms more appealing.

Credit cards were the preferred online payment method for 11% of Filipinos in 2022, and a 2021 report found that credit cards were preferred over debit cards in the Philippines because of their rewards programs and installment plans. Buy now, pay later (BNPL) payments have been increasing in popularity for similar reasons with providers such as UnaCash offering flexible payment plans.

Popular B2C payment methods in the Philippines

• Digital wallets (e.g., GCash)
  
• Credit cards
  
• Bank transfers
  
• BNPL (e.g., UnaCash)
  

Popular B2B payment methods in the Philippines

• Credit cards
  
• Bank transfers
  
• Direct debits
  

Trends

Cryptocurrency has seen a mix of enthusiasm and cautious acceptance in the Philippines. About 13% of Filipinos own cryptocurrency, and the Philippines ranked sixth in the world for crypto adoption in Chainalysis’s 2023 Global Crypto Adoption Index. BSP Circular No. 944 requires cryptocurrency exchanges to register as remittance and transfer businesses, and guidelines for digital assets released in 2023 give government agencies more oversight regarding inspection, market monitoring, and enforcement to protect customers.

Ease and friction of entry

Businesses that want to accept payments in the Philippines must plan for various aspects of the payment system, including value-added tax (VAT) and payment security regulations. Here’s an overview:

Taxes

The Philippines imposes a 12% VAT on most goods and services, which is incorporated into the retail price customers pay. Businesses are responsible for documenting, collecting, and remitting this tax to the Bureau of Internal Revenue. Another cost to consider is the documentary stamp tax, which is applied on bank transactions such as checks, promissory notes, and some debit transactions. Though these fees are typically modest, they can add up over time.

Chargebacks and disputes

The Consumer Act of the Philippines aims to protect customers against deceptive and unfair sales practices. Specifically regarding digital transactions, customers have the right to dispute unauthorized transactions and can initiate a chargeback process through their card-issuing banks if they believe they’ve been deceived or there was an error in the transaction.

International payments

Cross-border payments in the Philippines are more common than ever. Here are a few facets to remember:

• Multicurrency features: Many Filipino businesses, especially in tourist hubs, provide multicurrency features that show customers from outside the Philippines prices in their local currencies. Though these transactions require currency conversion, they can make the payment process more convenient for international customers.

• Currency conversion: When a foreign currency is used in a transaction, it must be converted. Conversion rates are determined in real time, with fees of 1%–3% that businesses often pass on to the customer. Third-party platforms such as Stripe handle currency conversion at the time of payment, simplifying the process for businesses.

• Regional payment methods: Accepting payment methods from nearby countries that have strong business or tourism relationships with the Philippines can make the checkout process more approachable for international customers. Accommodating WeChat Pay payments, for example, caters to Chinese customers.

Security and privacy

The digital payment sector has expanded considerably. In response, the Philippines has focused on security and privacy measures to ensure the safety of transactions and user data. Here’s how the Philippines manages these aspects of its payment system:

• Data protection laws: The Data Privacy Act of 2012 mandates that businesses adhere to strict standards when handling personal data. The act aligns the Philippines with international data protection standards by emphasizing transparency, legitimate purpose, and proportionality in the collection and processing of personal data. The National Privacy Commission oversees this act’s implementation and monitors data processors and controllers for compliance.

• Ecommerce regulations: The Electronic Commerce Act of 2000 provides a legal framework for ecommerce in the Philippines, setting rules to verify the authenticity and reliability of electronic documents. This act covers security measures such as the use of electronic signatures, which create a more secure digital transaction environment.

• Anti-Money Laundering (AML) legislation: The Philippines’ AML legislation requires financial institutions, including banks and money transfer services, to report suspicious transactions to the Anti-Money Laundering Council. Regular updates and amendments to this act keep it responsive to the changing trends of financial crimes.

• Cybercrime prevention guidelines: The Cybercrime Prevention Act of 2012 recognizes the threats posed by cybercriminal activities and emphasizes faster detection, investigation, and prevention. The act covers illegal access to data, data interference, system interference, misuse of devices, and other cyber offenses.

• Central bank oversight: The BSP oversees a broad range of payment and settlement systems, monitoring their stability and efficiency. The BSP issues guidelines focused on risk management and consumer protection for electronic payment and financial services.

Key success factors

Despite the Philippines’ progress in establishing a modern payment system, challenges remain, driven by internal and external factors. Here’s how businesses can address those challenges:

• Flexible payment options: Despite the rise of digital payments, about half of Filipino adults didn’t have formal bank accounts in 2024. To reach this unbanked demographic, businesses that want to transition to digital payment methods need a diverse set of payment options. Accepting digital wallets and BNPL payments creates the flexibility to serve a wider portion of the population.

• Simple QR code systems: Integrating mobile payments often means Filipino businesses need to adopt QR code systems. Though there’s an up-front investment, the benefits—including shorter transaction times and payment tracking—are substantial. Transaction fees for mobile payments typically match those of traditional card payments, and the appeal of reaching a broader customer base can outweigh these costs.

• Smooth connectivity solutions: Reliable internet connectivity is fundamental for digital payment operations, but internet speed and reliability can be inconsistent in the Philippines, especially in rural areas. The Speedtest Global Index ranked the Philippines 66th out of 103 countries in terms of mobile internet speed in 2025, and this lag can impede transaction completion. Payment processors that can store payment data locally and continue processing it once a network connection returns help businesses avoid losing payments because of internet problems.

• Heightened cybersecurity measures: As online transactions increase, the threat of cyberattacks also increases. There were as many as 1.76 million cyberattacks in the Philippines in the first quarter of 2021, highlighting why payment platforms in the country must constantly upgrade their security infrastructure. Fraud detection and prevention tools such as machine learning systems simplify online payment security for businesses.

Key takeaways

Accepting payments in the Philippines requires a strategy that accounts for the prevalence of mobile payments and inconsistent internet connectivity. Here’s a recap and tips for succeeding in the Filipino payment system.

Prioritize digital wallet payments

• Focus on digital wallets: Adoption of mobile payment apps and digital wallets has increased greatly. Integrating with these platforms can be advantageous for businesses, catering to a large customer base that prefers to pay with their phones.

• Embrace QR codes at checkout: QR code payments are also common in the Philippines. Incorporating QR code options at checkout can simplify the payment process for customers.

• Accommodate local payment methods: Filipino customers prefer localized payment methods, so recognizing these methods can build trust with customers. For example, digital wallets GCash and PayMaya and BNPL provider UnaCash are popular local options.

Improve customer communications

• Offer responsive customer support channels: Providing immediate customer support in Filipino for any issues that arise during the transaction process can improve the overall payment experience. Options such as live chat support can help address issues quickly.

• Be transparent about refund and dispute processes: Filipino culture values trust, and transparency in handling refunds can reinforce this core value. Outlining refund and dispute procedures clearly and communicating promptly can help maintain customer loyalty.

• Consider regional promotions: Businesses can improve customer engagement by recognizing regional holidays and festivities such as the Sinulog Festival and incorporating them into promotions or payment incentives.

Protect digital payment data

• Choose a secure payment gateway: A payment gateway that encrypts transaction details such as credit card numbers prevents fraudulent actors from accessing customer data. Pick a payment gateway and payment processor that can safely transmit sensitive payment data.

• Shield customer data: Protecting customer payment data is required for compliance with the Data Privacy Act, but doing so also builds trust in your business operations. Following the Payment Card Industry Data Security Standards (PCI DSS) can also improve your data security.

• Keep customers informed: Payment trends and practices are always changing. Continually communicating with customers about your payment features and security protocols can help your business gain customers’ trust and loyalty.