With the Bangko Sentral ng Pilipinas instituting the utilization and acceptance of digital payment methods over the past five years, merchants participating in the QR PH person-to-merchant payment system are now nearing half a million.

Artie Lopez, co-founder, and chief operating officer of NextPay, in an email message to the DAILY TRIBUNE, said although the QR Ph system was just being mandated for full adoption last 1 July 2023, it has already shown promises for both merchants and consumers.

As of April 2022, there were about 473,000 merchant locations participating in the QR PH person-to-merchant payment system, and as of June 2022, there are 17 financial institutions already participating in QR Ph P2M, he said.

"Micro, small, and medium entrepreneurs in the Philippines are the biggest beneficiaries of this effort. Establishing a robust foundation of financial literacy and inclusion is essential for their growth and success, and a central system that provides them the capacity to accept payments from other banks and e-money accounts through one channel bolsters their chances of achieving financial wellness in a dynamic and ever-evolving world of business," he said.

He expressed that in the lens of entrepreneurship, financial literacy, and inclusion contribute greatly to financial wellness, encompassing factors such as sustainable cash flow, profitability, debt management, savings, and investments.

"With financial wellness, they become better equipped to withstand economic uncertainties, invest in growth opportunities, and contribute to job creation. The majority of Filipinos have sufficient knowledge of the availability of the modules, programs, and automated financial tools out there and the benefits they can provide themselves or their business. However, there remains a certain psychological barrier that keeps them from using such resources, hindering them from achieving financial wellness," according to Lopez.

Overcoming barriers

Despite the boom of the system, he said many entrepreneurs and business owners exhibit hesitance when it comes to embracing such tools, whether it's rooted in fear of technology, concerns over security and privacy, or reliance on traditional methods.

Strikingly, he said the new barrier between entrepreneurs and digital financial tools is their exhaustion with various different financial tools that they simultaneously have to use to keep running their business efficiently.

Having thrown too many solutions at once, he stressed that MSMEs are forced to go back to traditional formats that they think are ideal and convenient for them but not efficient for the business.

"It is crucial to discern which facets of your business consume your time, profit, and resources and evaluate if they can be replaced or optimized. Fortunately, technology-driven tools exist to streamline operations, freeing entrepreneurs to concentrate on growth and expansion," he said.

"Not utilizing digitized financial tools can put MSMEs at a disadvantage by hindering their efficiency, limiting market reach, and impeding their ability to make informed financial decisions with the lack of knowledge on where their business health is at, which are things that impact entrepreneurs' competitiveness," he added.

User-friendly digital financial tools open up significant opportunities for MSMEs. Entrepreneurs can seamlessly incorporate them into their daily routines, enhancing efficiency, accuracy, and time management. Automating tasks such as collecting, managing, and sending money, streamlines operations and reduces the risk of errors or delays. Real-time financial data also empowers entrepreneurs to mitigate risks effectively, positioning them for long-term success.

"In my role as the Co-founder and Chief Operating Officer at a fintech startup, I've had the privilege of witnessing firsthand the transformative impact these tools can have on business operations. Notably, The Fourth Wall, a research analysis firm, shared its experience of significantly enhancing client service by effectively resolving their financial disbursement challenges. Echoing this sentiment, Lab@Home, a medical test booking company, highlighted the efficiency and transparency our tools provide, fundamentally revolutionizing their invoicing process. This illustrates the tangible benefits that can be derived when embracing digital solutions within the realm of financial management," he explained.

NextPay empowers MSMEs to automate the collecting, sending, and managing of money—all in one powerful platform.

Since 2020, over 3,000 Filipino entrepreneurs have trusted NextPay to help them simplify their financial operations.