WHILE cash is still the main payment mode in the Philippines, multinational financial services company Mastercard Inc. said that contactless payment has gained traction since last year amid the accelerated shift to digital.
In its report titled “Mastercard Philippines Contactless Study,” the Purchase, New York-headquartered firm said that over 70 percent of contactless cardholders used their card in-store over the past year. A significant portion (40 percent) even claimed they were making contactless payment purchase at least once a week.
On the other hand, the 40 percent who did not transact via contactless card payments in the past year had worries over cybersecurity. The study revealed that hacking (86 percent) and wireless skimming (82 percent) were the top concerns among the consumers.
“A key highlight in the study is the important roles that different stakeholders play in helping consumers to adopt this new payment technology,” Mastercard said, noting that 19 percent learned how to use contactless cards through instructions from bank employees while 17 percent were informed by cashiers. Meanwhile, 21 percent learned through self-discovery, it added.
The financial services firm said this trend shows that banks and merchants are essential in raising awareness and confidence in the usage of contactless payments in the country.
Mastercard Country Manager Rowell O. Del Fierro said they encourage more consumers to adopt a contactless payment mode.
We are “ramping up efforts to help issuers, acquirers and merchants further drive contactless transactions by providing these industry players with data, insights, best practices and execution support starting with a deeper understanding of consumers’ motivations and concerns when choosing payment methods,” Del Fierro said.
In the Philippines, the study noted that 86 percent of consumers are aware of contactless cards. Nearly half of the consumers said they are using such payment mode because it takes them less time to complete transaction. Meanwhile, 38 percent said use of contactless cards because of hygiene concerns.
“To accelerate the uptake of contactless card payments, [we are] also closely working with industry partners, to implement initiatives, programs and technology solutions that successfully enable businesses of all sizes to meet evolving needs of today’s customers,” Del Fierro added.
In a recent study by Visa, the company noted that 73 percent of Philippine respondents adopted contactless payments as it became more widely accepted. This led to cash usage declining to five consumers out of 10 consumers from seven consumers out of 10 consumers prior to the imposition of mobility restrictions last March 17, 2020.
Three-fourths of the Filipinos surveyed by Visa believe that digital payments can help in containing the spread of Covid-19. Respondents also cited convenience, lower risk of theft and ability to track financial records as reasons behind supporting cashless payments.
In addition, the Visa study revealed that consumers would completely transact via contactless payment terminals for bills payment (81 percent), grocery shopping (71 percent) and overseas travel (68 percent).