Digital payments and fund transfers system need to be further strengthened for more people to embrace the growing practice which registered strong uptake after many Luzon areas were placed under quarantine lockdowns in the first half of 2020.
Xendit Philippines Managing Director Yang Yang Zhang, in a recent virtual briefing said ensuring regulators are briefed on what the company wants to introduce to help the startups ecosystem is also important.
“Ultimately, we hope that along the way, as we build up this startup ecosystem, we try to accelerate its growth, and really expand the digital commerce industry here. We also want to make sure we are participating in active dialogue so regulators are always abreast of evolving technological innovations,” she said.
Indonesia-based financial technology firm Xendit, which operates in other Southeast Asian countries too, has partnered with GrabPay Philippines, among others, and is now expanding its operations in the country.
GrabPay wallet utilizes Xendit Direct Debit that allows the former’s customer to link their bank account to top up their GrabPay balance.
Zhang said greater acceptance of digital transactions will materialize if people learn more about the system through consumer education that will teach the use and the data needed by the system.
“While we see increasing demand for digital transactions, we understand that many businesses in the Philippines have not yet fully embraced the digitalization journey. Xendit is unique because we build deeply into each local market and culture, allowing us to work hand-in-hand with both traditional and startup businesses to innovate together along their digital transformation journey. This is especially important now, as so much of the Philippines continues to rely on transacting online for essential payments and purchases,” she said.
In the same event, GrabPay Philippines head Jonathan Bates said Bangko Sentral ng Pilipinas’ (BSP) decision to implement the electronic fund transfer systems InstaPay and PESONet, as well as the adoption of a national quick response (QR) initiative, are great boosts for fund transfer digitization in the country.
Bates said the government’s national identification (ID) program and introduction of more regulations towards ensuring the security of cashless payments and transfers “will see a massive acceleration” of transactions by 2021.
Contact tracing application TARA! chief executive officer Carlo Almendral, cited the need for digital payments solutions especially now as Covid-19 infections remain high.
Almendral said many people “are realizing that cashless payments are not just safer health-wise, but more convenient for both business owners and customers, especially those who are unbanked. Xendit’s fraud management tools ensure that even the most traditional businesses feel comfortable accepting payments online for the first time.”