Philippines – With the growing consumer preference for online shopping and strong internet penetration, a report by information services firm GlobalData found that the Philippines’ e-commerce payments is expected to grow by 19.6% in 2024.
This underscores an increasing confidence in online payments, improving logistics, and the availability of secure alternative payment solutions.
According to the report, the country’s e-commerce sector saw a remarkable compound annual growth rate of 28.6% between 2019 and 2023, reaching PHP1.1 trillion (US$20.1b) in 2023. The market is set to reach PHP1.3 trillion (US$24.1b) in 2024.
Furthermore, it was observed that in terms of boosting e-commerce sales, the government has been proactive in taking various initiatives, such as the One Town, One Product Philippines programme by the Department of Trade and Industry in June 2023.
The said initiative was launched in collaboration with SOMAGO, an e-commerce and logistics provider.
International brands are further venturing into the e-commerce space through the introduction of platforms like Temu, which launched its operations in the Philippines to compete with companies such as Lazada and Shopee.
Alternative payment solutions, on the other hand, led the e-commerce space with a combined market share of 36.4% in 2023. The said figure is based on GlobalData’s 2023 financial services consumer survey.
Among the popular alternative payment tools among online shoppers are Gcash, Maya, and PayPal, all of which have gained prominence due to their simplicity, speed, and convenience.
Shivani Gupta, senior banking and payments analyst at GlobalData, shared, “The Philippines’ e-commerce market is growing at fast pace, supported by a large young population, increasing confidence in online payments, improving logistics, and the availability of secure alternative payment solutions in the country. Online shopping festivals such as Black Friday, Cyber Monday, and Single’s Day have also contributed to the overall growth.”
“Payment cards are the second most preferred payment method, with debit, credit, and charge, and prepaid cards collectively accounting for 28.2% share in 2023. This can be attributed to the value-added benefits offered on payment cards, including interest-free instalment payments, reward programmes, cashback, and discounts,” explained Shivani.
“The uptrend in e-commerce sales is likely to continue over the next few years, supported by evolving consumer preferences, government initiatives, a rise in social commerce, and the entry of new e-commerce companies. The e-commerce market is anticipated to increase at a CAGR of 13.2% between 2024 and 2028 to reach PHP2.2t ($39.5b) in 2028,” Shivani concluded.
