Connect with us

Hi, what are you looking for?

Economy

Fintechs challenged by PHL attachment to cash

THE continued preference for cash is proving to be a major hurdle for financial technology (fintech) companies, as they seek to build trust in their platforms’ security while spreading awareness of the advantages to using their offerings during the pandemic, industry representatives said.

“We know that we are dealing with a market that still chooses to pay in cash. There are a lot of security concerns on digital payments and awareness of e-payment platforms remains low,” Xendit Philippines Managing Director Yang Yang Zhang said at a virtual briefing Friday.

In 2018, online payments accounted for 10% of the total volume of transactions, up from 1% in 2013, according to estimates provided by the United Nations-affiliated Better Than Cash Alliance. By value, such payments made up 20% of the total in 2018, from 8% in 2013.

The central bank is promoting a transition to a so-called a cash-lite society by 2023, in which e-payments will make up 50% of the total volume and value of transactions.

Ms. Zhang said her Indonesia-headquartered fintech, which provides payments infrastructure for both merchants and consumers, processed 65 million transactions per year, or about 5 million each month.

“I think that it is exciting to see the Philippines starting to comprise a growing percentage of that number as well,” she said.

Ms. Zhang said opportunities in the Philippine fintech sector are abundant because of the “friendly” regulatory environment, allowing for “more disruptive, more interesting solutions that could be built here than anywhere else in the region.”

This year, Ms. Zhang said the company hopes to expand its network of banks and retail outlets linked to its platforms.

“We want to make sure that we are building experiences that are intuitive and easy enough that more Filipinos can transition to more digital payments painlessly,” Ms. Zhang said.

Xendit Philippines has a partnership with credit app BillEase, with Xendit serving as a channel to facilitate installment payments directly from consumers’ bank accounts, BillEase CEO Georg Steiger said.

He added that fintechs hope to relieve Filipinos from the burden of having to turn to predatory lenders.

“I think the best way to end (predatory lending) is to ensure better options are available. Any crackdown will only just basically push this stuff to darker corners of the market, and if it’s not online then it will be offline,” Mr. Steiger said, noting so-called five-six lending schemes have long predated online lending and are entrenched.

He said the national ID and the availability of more information sources will help both consumers and lenders bridge the credit data gap. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Another Olympic gold medal for the Philippines is within reach after featherweight boxer Nesthy A. Petecio secured a spot in the finals at the...

Economy

Filipino flyweight boxer Carlo Paalam advanced to the quarterfinals of the flyweight division in the Tokyo Olympic Games after he defeated Mohamed Flissi of...

Economy

Filipino pole vaulter Ernest John Obiena advanced to the final round of the men’s event in the Tokyo Olympic Games after finishing among the...

Economy

Manila and nearby cities would go back to the strictest lockdown level from Aug. 6 to 20 amid a fresh surge in coronavirus infections...

Economy

The Philippine central bank will keep a supportive monetary policy amid a slower-than-anticipated economic recovery, its governor said on Friday.  “High-frequency indicators suggest that...

Economy

The Philippine central bank raised P100 billion on Friday as it fully awarded its short-term securities, with yields rising due to concerns about a...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!