Digital payments in the Philippines continue to grow, driven by demand for faster, more secure, and more convenient financial solutions. One of the key developments in this space is the adoption of XPay, supported by Visa’s enablement strategy for banks.
With Visa’s technology and partnerships, financial institutions in the Philippines are now better equipped to offer seamless digital payment experiences. This empowers banks to meet customer needs while advancing the country’s cashless economy goals set by the Bangko Sentral ng Pilipinas (BSP).
Workshop Highlights
The event featured insights from Google Southeast Asia, Vietcombank, and Starbucks Vietnam. Speakers included:
- TG Ramakrishnan, Google Payments Strategic Partnerships Lead for Asia Pacific
- Nguyen Hong Thanh, Deputy Director of Retail Product at Vietcombank
- Nguyen Bao Tram, Head of Business Development and Marketing at Starbucks Vietnam
Sessions focused on integration strategies, operational scaling, and the security advantages of Visa’s tokenization technology.
Regulatory Context
The Bangko Sentral ng Pilipinas (BSP) recently clarified that mobile payment providers are considered technology service providers, not operators of payment systems. This means xPays cannot hold funds directly. Instead, users must link their Visa credit, debit, or e-money accounts to access tap-to-pay services in stores, online, or in apps.
Security Through Tokenization
Visa’s Token Service (VTS) replaces sensitive card details with unique digital tokens every time a card is added to an xPay wallet. This prevents merchants from ever seeing or storing real account numbers, significantly reducing fraud risks.
- Visa has issued 10 billion tokens as of 2024.
- More than 1.5 million merchants use Visa tokens daily.
- Fraud rates have been cut by 58%.
- VTS delivered a US$2 billion uplift for Asia Pacific merchants in 2023.
Regional Adoption
Vietnam has seen strong adoption, with Google Pay and Samsung Pay live since 2022 and Apple Pay since 2023. Vietcombank, Visa’s key partner in Vietnam, shared its successful rollout strategies with Philippine banks.
“Vietcombank has been a trusted partner of Visa in delivering seamless payment experiences to Vietnamese consumers. We’re proud to share our key learnings with peers across the region,” said Nguyen Hong Thanh of Vietcombank.
Advancing Digital Inclusion
According to Visa research, 97% of Asia Pacific travelers bring credit, debit, or prepaid cards on trips, while only 17% carry foreign currency. In the Philippines, 44% of travelers report merchant non-acceptance issues, highlighting the need for wider adoption of digital wallets.
“Digital wallets like Google Pay, Apple Pay, and Samsung Pay amplify the power of Visa by delivering secure and seamless payment experiences,” said Jeffrey Navarro, Visa Country Manager for the Philippines. “Each tap is protected by Visa’s token technology, ensuring trust while driving financial inclusion in the Philippines.”
Growth Outlook
Digital retail payments in the Philippines now account for 57.4% of total transaction volume, surpassing the 2024 target under the Philippine Development Plan. The market remains on track to meet the 70% digital payments target by 2028.
