Cotabato City in Maguindanao has become the first area in the Bangsamoro Autonomous Region in Muslim Mindanao to use digital payments in public markets and transport hubs.

This is done through Paleng-QR Ph Plus which uses QR codes to be scanned by e-wallets on smartphones, and was launched by the Bangko Sentral ng Pilipinas, or BSP, in the provincial city on 15 November.

Paleng-QR allows vendors and transport workers to serve the growing number of smartphone users which has reached over 71 million, according to the Philippine Statistics Authority.

"We look forward to another successful rollout of the Paleng-QR Ph Plus program as it empowers your community and eventually the whole nation," BSP governor Eli Remolona Jr. said.

50% digital wet marts

The government aims to expand digital retail payments to 50 percent of all payments in the country this year.

The BSP reported 13 local government units offering Paleng-QR outside Metro Manila. They include the cities of Baguio, Davao, Tagbilaran, Naga, Lapu-Lapu, Pasig, Carmona, Bacolod, Camiling, Victorias, Mandaue and Ozamiz.

Aside from digital retail payments, the government aims to spread financial literacy through e-wallets which also offer digital savings and investing.

The BSP reported Filipinos with e-money accounts jumped to 38 percent in 2021 from 8 percent in 2019.

At the same time, Filipinos without savings or deposit accounts dropped to 34 million from 51 million during that period.