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BusinessWorld Banking

Merchant payments push digital transaction growth

MERCHANT PAYMENTS continued to drive the rise of digital retail transactions in the Philippines in 2025 as more consumers and businesses adopted scan-to-pay methods, a report from the Bangko Sentral ng Pilipinas (BSP) showed. The BSP’s 2025 Report on E-Payments Measurement published Tuesday showed that person-to-merchant (P2M) payments accounted for 74.31% of total digital retail […]

Context & Analysis

The shift toward merchant payments matters because it changes how small businesses operate, not just how customers buy. For a sari-sari store, eatery, or online seller, scan-to-pay can replace cash counting, reduce reconciliation headaches, and create a digital record of sales that may help with inventory planning, lending applications, and tax compliance. The real test is whether the convenience reaches micro-merchants in provinces as well as urban malls and food delivery platforms.

For consumers, the benefit is not only speed. A growing QR network can lower the cost of paying for everyday goods, especially where card networks have been less practical because of fees or limited acceptance. It may also make it easier to split bills, track spending, and move from cash into regulated payment rails that offer some consumer protections. Still, adoption depends on trust: consumers must feel that wallets are safe, that disputes can be resolved, and that merchants will not pass hidden surcharges.

Regulators have an interest in this trend because digital payments can strengthen financial inclusion while reducing the economy’s reliance on cash. The BSP’s measurement work helps policymakers see whether growth is broad-based or concentrated among larger merchants, and whether smaller players are being left behind by high transaction costs, device constraints, or weak internet access. If scan-to-pay becomes a default channel, expect more pressure for standardized billing, better fraud monitoring, and clearer rules around refunds and chargebacks.

What to watch next is the competition over merchant acceptance. Banks, wallet providers, and payment processors will keep competing for QR placements, settlement speed, and rewards. The winners may be those that make onboarding simple for small merchants and keep fees low enough for thin-margin businesses. For Philippine firms, the strategic question is no longer whether to accept digital payments, but how quickly they can integrate them into operations without sacrificing margin or customer trust.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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