Rides, Movies and Music Are Weaning Filipinos Off Cash

(Bloomberg) -- Streaming and ride-hailing services have become an entry point for cash-reliant customers in the Philippines to try electronic payments, according to a report by Visa Inc.

Three out of four Filipinos planned to use cashless methods more often in 2018, up from 47% a year earlier, according to Visa. That’s the most significant rise since Visa started its payment behavior survey in 2014.

The shift is driven by the rise of e-commerce in a country where seven out of 10 customers still prefer to use cash. Filipinos become more comfortable with electronic payments after using it to buy music, watch movies and book ride-shares, Visa Country Manager Dan Wolbert said at a briefing in Manila.

Key Insights

• Three out of four Filipinos now find cashless payments safer than cash, improving from 42% the year before.
• More than half of Filipinos use mobile payments at least once a week on apps (56%) and websites (51%) from 41% a year ago.
• Visa transactions in the Philippines grew 21% year-on-year as of June, outpacing the 19% annual growth in card spend. Wolbert said this is a sign Filipinos are going cashless for more services and smaller amounts.

To contact the reporter on this story: Claire Jiao in Manila at cjiao5@bloomberg.net

To contact the editors responsible for this story: Cecilia Yap at cyap19@bloomberg.net, Clarissa Batino

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