People at the grassroots level should harness digital technology by shifting to cashless transactions because it will bring several benefits to them, according to a pro-consumer rights advocacy group.
“The use of [digital technology] should be extended to market vendors, community shopkeepers, tricycle operators and drivers, farmers and small merchants,” said lawyer Christopher Belmonte, co-convenor of CitizenWatch Philippines.
“Convenience is just one thing. Aside from this, the adoption of cashless payments like GCash would open up to other financial services like loans, savings, investments and others,” added Belmonte.
Although there is a significant amount of economic activity going on in markets, in public transportation, and in the fields, Belmonte noted majority of the transactions are still cash-based. Nevertheless, he is optimistic people will shift to cashless once they see the benefits and, more importantly, once they are shown how.
Belmonte also urged local executives to work with the Bangko Sentral ng Pilipinas (BSP) and the Department of the Interior and Local Government as it rolls out Paleng-QR Ph Plus, which aims to promote cashless payments in public markets and local transportation, particularly tricycles, across the country.
Paleng-QR was inspired by student policy competition finalists from the University of the Philippines-Los Baños in 2021.
The program targets to change the paradigm in markets and public transport, because these are basic components of an average Filipino’s typical payment pattern, said the Bangko Sentral on its web site.
“Until a market vendor and a tricycle driver can accept digital payments, transitioning to cashless transactions would be difficult for an average Filipino consumer,” the BSP added.
“Some stores are already using QR codes to facilitate cashless purchases. They can scan it with their smartphones and confirm payments in seconds. No more exchanges of cash and finding change. It’s so convenient,” Belmonte said.
“Also, important for both seller and buyer is the digital record of the transaction.”
It’s also safe, he added. “No more risks of cash being taken by thieves.”
“The pandemic-induced lockdowns introduced millions of Filipinos to the benefits of cashless payments,” said Belmonte. “Consumers learned to trust cashless transactions even after their initial hesitation. Eventually, many of us now prefer going cashless in our daily purchases.”
This experience does not have to be limited to those working in offices or bigger businesses, or to the younger generation who are digital natives. Vendors and drivers, once they experience going cashless, will likely prefer this over their usual ways, according to CitizenWatch.
“This is a great opportunity to introduce all Filipinos to the formal financial system, which can eventually provide them opportunities to start and grow their business,” Belmonte said.
“Digital payment platforms are an indispensable tool of the digital economy, and we want all Filipinos to participate in this thriving, promising economy.”