DESPITE recent phishing issues involving certain mobile wallets, Filipinos would continue to use cashless payments and other digital transactions because of its convenience and security, a Visa Philippines executive said.
Visa Inc. Country Manager for the Philippines and Guam Jeffrey V. Navarro emphasized that the “overall” benefits of going digital in terms of payments and transactions far “outweigh” the risks that they entail.
Navarro was responding to queries regarding the possible impact of recent phishing incidents involving some digital payment platforms on the Filipinos’ confidence in going cashless.
Navarro pointed out that the Filipinos’ confidence in the use of cashless payment systems remains high as they “feel safe against theft.”
Nonetheless, he did note that the risks surrounding digital transactions should be addressed by financial technology companies as it builds trust and confidence among their consumer base.
“Filipinos remain very confident to use [cashless] because of convenience and enables [them] to do a lot of things. Consumers need to balance [their] perceived risks and overall benefits,” he told reporters in an interview on Thursday in Makati City.
“We still feel that the overall benefit [of cashless payments]—on how it can empower you, on how you go with your lives in a convenient manner—still outweighs potential risks,” he added.
Navarro explained that consumer education remains as one of the key solutions in reducing cases of phishing as it empowers users to be knowledgeable about the “dos-and-don’ts” in the digital transaction space.
Spending, investment
NAVARRO added it is imperative for digital payment companies to invest in their cybersecurity programs while strengthening partnership with their clientele in combating phishing issues.
“We are seeing [financial technology companies] really spending and investing in education,” he said.
In its latest Consumer Payment Attitudes Study, Visa said 50 percent of Filipinos are carrying less cash as they increasingly opt for cashless payments last year.
“While cash remains a prevalent payment method, the study indicates that 82 percent of Filipinos have attempted to go cashless in 2022, with almost half (40 percent) succeeding for a few days. Notably, about 9 percent were able to go cashless for over one month,” it said.
Furthermore, Visa said the frequency of cash payments made by Filipinos last year declined to 6.4 in every 10 purchases from 7.8 in 2021. The firm attributed the decline to increasing reliance by Filipinos on cashless payments and concerns regarding the safety of carrying cash.
“The increasing adoption of cashless and contactless payment methods is a testament to the growing preference among Filipinos for safe and convenient transactions,” Navarro said.
“As consumers realize the benefits of cashless options such as mobile wallets and cards, we are witnessing a progressive shift towards a cash-lite society in the Philippines,” Navarro added.
For the past eight years, Visa has been conducting its annual study on Consumer Payment Attitudes. Visa interviewed 1,000 Filipino consumers aged 18 to 65 years old for its latest study.
