Filipinos continue shift to digital payments
Transactions conducted through InstaPay and PESONet topped P24 trillion by the end of 2025, underscoring Filipinos’ growing shift toward cashless payments as regulators press for broader adoption of digital finance.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the combined value of transactions coursed through the two automated clearing houses surged 42 percent from a year earlier to P24.7 trillion.
The number of transactions surged even faster: volumes reached 4.8 billion, up 217 percent year-on-year.
InstaPay, a real-time digital payment system for transactions of up to P50,000, is widely used for retail purchases, toll and ticket payments and e-commerce, supporting in particular micro, small and medium enterprises. The central bank said InstaPay had surpassed ATM withdrawals in both volume and value since 2020, when the pandemic pushed many Filipinos to shift away from cash.
That momentum has continued. The value of InstaPay transactions jumped 57 percent from a year earlier to P11.6 trillion in 2025, while volumes climbed nearly 231 percent to 4.7 billion.
PESONet, by contrast, caters to large-value fund transfers, serving as an electronic alternative to the paper-based check system. Payments are processed in batches and cleared at set intervals, allowing recipients to receive funds within the same banking day, provided instructions are sent before the cutoff time.
Above target
Figures showed funds transferred through PESONet reached P13.1 trillion in 2025, up 30.9 percent from a year earlier. The system handled 117.2 million transactions, an increase of 16.25 percent.
By 2024, data showed digital payments accounted for 57.4 percent of all retail transactions, up from 52.8 percent a year earlier—a result that exceeded the government’s target of 52 to 54 percent.
According to the BSP, 97.2 percent of transactions made by the government were done via digital channels in 2024, the most cash-lite among the three primary payment use cases that the central bank tracks. Meanwhile, the share of digital payments made by individuals rose to 72.2 percent.
The central bank’s next goal is far steeper: digitalizing 60 to 70 percent of retail payments by 2028, a target officials acknowledge will be harder to meet.
That said, the BSP wants to expand the digital-payments user base by cutting transaction costs and strengthening anti-fraud safeguards—steps deemed essential to building public trust in the system.
