Cashless transactions amidst the pandemic

With social distancing rules being strictly enforced around the country, technology is helping us navigate through the pandemic to keep us safe from the COVID-19 virus,

We all have seen the increasing use of cashless and contactless payment systems. eWallets are becoming more popular as they function like a debit card or credit card. This can be easy used in online purchase and retail establishments. 

Globe claims that GCash "has made financial transactions easier for its 20 million registered users. And with over 63,000 partner merchants in the country, it truly has helped revolutionize the way Filipinos transact." Yes, from bills payments to online shopping, GCash and other forms of eWallets have provided convenience to millions of Filipinos.

Cashless transactions are adjusting to changing consumer habits like refusing to handle cash. I am sure you have gone through a McDonald's or Jollibee drive-thru and the cashier would give you a small basket to place your cash. Yes, there is the fear that cash can carry the virus. But health and medical experts say there is little data to support this fear. Still, better safe than sorry. So, we better bring out our eWaller.

According to a Bloomberg story by Linda Poon, "The cashless economy may accelerate even faster in countries where pre-pandemic adoption was already high — like in Sweden, where some 80% of the population pay predominantly by card and just 1.3% of the country’s GDP is circulated in cash."

According to the 2016 Visa’s Consumer Payment Attitudes Survey, results revealed 49% of Filipinos are carrying more cards and 29% carry less cash since they consider e-payments safer than carrying cash.

The study also showed that 71% of Filipinos shop online at least once a month. This is up 11 percent compared to the previous year, as online platforms  like Carousell, Lazada and Shopee continue to enjoy increasing patronage.

The results of the Bangko Sentral ng Pilipinas' (BSP) FIS, revealed that Filipino adults who own accounts grew to 29% in 2019 from 23% in 2017. "The number of Filipino adults who are unbanked is estimated at 51.2 million, out of a total adult population of 72 million in 2019," says the BSP.

But would you believe that EMV technology was only implemented in 2017 in our country in 2017 while other countries have had it in place ten years ago?

With the primary concern of people and companies quickly evolving to focus on health and safety, we can say that cashless transactions will be an integral part of the new normal. 

Hopefully, financial institutions like banks would be more accommodating and flexible with their own regulations to bring more Filipinos to go cashless. And paperless too!