Cash-on-delivery still dominates Phl online shopping
XENDIT Philippines head of Commercial Ina Gatan discusses the country’s evolving payment landscape as the Philippines continues to lead six Southeast Asian markets in cash-on-delivery use.
Photograph courtesy of Xendit
Despite rapid growth in digital payments, the Philippines remains Southeast Asia’s most cash-on-delivery-dependent e-commerce market, according to a new report by payments company Xendit.
The Ecommerce Payments Momentum Report 2026, released on 15 October, found that cash-on-delivery (CoD) accounts for 23 percent of Philippine e-commerce transaction value recorded on Xendit’s platform, the highest among six Southeast Asian markets surveyed.
Meanwhile, payments through QR Ph and InstaPay surged 198 percent in the 15 months ending April 2026, although they still accounted for only 13 percent of e-commerce transaction value.
E-wallet payments, led by GCash, grew just 3 percent over the same period.
The report also found that 41 percent of Filipino online shoppers who abandoned a purchase in the previous three months cited the absence of their preferred payment method as their main reason.
“Filipino consumers have always been receptive to new technology and we see the same in digital payment, but they don’t all pay the same way,” Xendit president Nazim Ali said.
The study surveyed 6,000 online shoppers across six Southeast Asian markets, including 1,000 Filipinos, alongside Xendit’s transaction data.
While cash payments are declining, 12 percent of Filipino respondents said nothing would convince them to abandon CoD.
Another 33 percent reported using the payment method less frequently than a year earlier.
Xendit expects the Philippines to remain the only market among the six surveyed where CoD will account for more than 20 percent of e-commerce transaction value in 2027.