The future of Philippine payments industry : a technology foresight by 2022 / Maurice V. Gonzales

Date : December 2017
Number of Pages : 80 leaves
Adviser : Prof. Glen Imbang

Abstract :

In the Philippines, only 1% of payment transactions are done electronically. Furthermore, e-commerce transactions only make up 1% of the total commerce in the Philippines. These numbers are very low compared to other countries globally. This growth is affected by the actions and behaviour of the stakeholders which are the customers, the merchant retailers, the financial companies and the government.

The payment industry has been evolving fast with new financial technology companies offering new financial products and business models. Banks, on the other hand are also trying to catch up in the digitization. The government has recently come up with new policies to be an enabler of financial technology solutions while prioritizing consumer protection.

This study aims to look on the possible future of the Philippine Payment Industry. In line with the many factors that bring change in the industry, it is necessary to know what could possibly happen in the next 5 years. To determine the possible future of the payment industry, a Technology Foresight exercise was done. This was aided by review of related literature, surveys, interviews and Delphi method.

Four scenarios were created after the scenario building process. Recommendations for the industry players and the government were also given based on the created scenarios. These include :
a. Financial product development shift to undeserved market
b. Customer is king in the payments industry
c. An open payment ecosystem in Southeast Asia
d. Cashless Philippines in 2022

The payment industry is expected to grow and tap not only the banked individuals but the underserved segment as well. Opening the payment ecosystem to neighbouring countries is also foreseen in the next years. While these changes happen, traditional banks, fintech players and the government must come prepared.