Driven by digital payments, e-commerce in the Philippines will grow rapidly in 2020

As the epidemic is gradually brought under control, people are slowly returning to their normal lives, but consumers' shopping habits have not changed. During the epidemic, online shopping has become mainstream, and payment methods using payment gateways or contactless payments have become increasingly popular.

By the second quarter of 2020, Filipinos’ spending on shopping apps increased by 53%, with platform sessions exceeding 4.9 billion, and consumers’ enthusiasm for online shopping was high. In October, online shopping in the Philippines soared 57%, more than tripling year-on-year, twice as much as other countries in the ASEAN region.

In mid-November 2020, Southeast Asian e-commerce giant Lazada announced a regional sales record for Singles Day, with sales reaching $100 million in the first hour. The 2020 Singles Day has been hailed as the largest shopping event in history, with total revenue exceeding $74 billion.

Consumer finance company Home Credit has also not stopped innovating, launching various services to meet consumers' growing demand for digital payments. Sheila Paul, chief marketing officer of Home Credit, said: "Application enhancements have given users a better experience, and we are about to launch an online payment gateway that will allow payments outside of shopping platforms such as Lazada."

Dan Wolbert, Visa Country Manager for the Philippines and Guam, said : “The pandemic has accelerated the development of digital technology and payments. We believe that this trend will develop faster and more steadily as more Filipinos use it. Data shows that one-quarter of Visa card users who have never made online transactions made their first online purchase in the first half of last year.”

Dan Wolbert added: “As a leading payments technology company, our goal is to work with partners like Home Credit to continue to develop and innovate to make digital payments more secure and convenient, while also empowering local businesses to grow . ”

“Besides providing digital services to Filipinos during this pandemic, we also want to ensure that our credit cards can play a role in helping people ease their financial burdens,” he added.

Southeast Asia

the Philippines