Digital payments accounted for 64.7 percent of total retail payment volume in the Philippines in 2025, up from 57.4 percent a year earlier, according to the Bangko Sentral ng Pilipinas (BSP).

The increase puts the country within the 60 percent to 70 percent digital-payment target under the Philippine Development Plan for 2023-2028, although cash and other non-digital methods still represented more than a third of retail payment activity.

The BSP’s latest measurement points to continued expansion in both the number of users and businesses accepting electronic payments. The number of digital payment accounts rose 69.4 percent, while merchant locations increased 36.3 percent in 2025. The expansion of payment infrastructure has also helped make account-to-account transfers more widely available, with interoperability allowing users of different banks and e-wallets to transact across platforms.

The central bank said transactions made through QR Ph exceeded those involving debit and credit cards for the first time in history. QR Ph processed 2.47 billion transactions worth P1.16 trillion during 2025.

The BSP also noted that PESONet transactions overtook check payments, pointing to a continued shift away from paper-based payments for business and personal transfers. PESONet is designed for electronic fund transfers and has increasingly served as an alternative to checks, while InstaPay handles real-time, low-value transfers.

BSP Governor Eli M. Remolona Jr. attributed part of the growth to the central bank’s push for interoperability across payment platforms.

“A lot of the growth is due to our insistence on interoperability, ensuring that a growing number of businesses and service providers are on one system,” Remolona said. “That brings in more users, which makes the network more valuable for everyone in it, including consumers, businesses, banks, e-wallets, and other platforms.”

Under Circular No. 1238, the BSP requires transfer fees between different banks or e-wallet providers to be reasonable and not materially higher than fees for transfers within the same institution.

Following the issuance of the circular, many of the country’s largest financial institutions, including Union Bank of the Phiippines, BDO Unibank, and the Bank of the Philippine Islands, among others, waived their respective InstaPay and PESONet fees – moves the central bank earlier hailed as a step in the right direction towards greater financial inclusion.

Remolona said the BSP would continue working with banks, payment companies and government agencies to expand digital payments.