Customers
4 Tech Innovations Transforming Payments in the Philippines

In 2013, digital payments accounted for just 1% of all transactions in the Philippines. Now just over a decade later, digital payments make up 52.8% of total monthly retail transactions.
This swift change goes to show that nothing ever stays the same in the world of payments, especially in a country as young and tech-savvy as the Philippines.
But what’s next? Here are four key innovations shaping the future of payments.
1. Blockchain
Blockchain provides a secure, decentralized way to process payments, making cross-border transactions faster and safer. Because blockchain operates as a public digital ledger, transactions are encrypted and cannot be easily altered. No single entity controls it, reducing the risk of fraud and delays.
For self-service payments kiosk provider eTap Solutions, while blockchain needs to be studied further, its capacity to provide better security makes it attractive for the payments industry.
In fact, President and CEO Carlo Hernandez acknowledges blockchain’s potential saying, “At eTap Solutions, we closely monitor evolving technologies, and blockchain is undeniably one of the most significant developments in the payments industry. What fascinates me about blockchain is its dual advantage: first, its use of encryption and decentralization to provide a highly secure transaction record; and second, its efficiency—some blockchains can process and finalize transactions within minutes.”
2. Buy Now, Pay Later (BNPL)
BNPL services let consumers buy now and pay in installments, even without a credit card. This has been a game-changer for Filipinos who are unbanked or underbanked, giving them more access to financial flexibility.
The global BNPL market is growing at an estimated 18.5% CAGR from 2024 to 2030, making it a powerful tool for businesses looking to reach new customer segments. According to TransUnion, BNPL usage has also been rising among Filipinos, particularly Gen Z. Among those aware of the product, 65% reported making at least one BNPL transaction in the past 12 months.
3. AI in Payments
Artificial intelligence, or AI, is a game-changer for all industries. Payments are no exception.
Yet the most outsize impact of AI is its ability to streamline all business operations. A study by the Philippine Institute for Development Studies highlights how financial institutions are leveraging AI to enhance customer-facing chatbots, detect fraud, and streamline time-consuming processes like code development and regulatory reporting. Generative AI is also transforming how banks create pitch book drafts and summarize complex financial data, leading to improved efficiency and decision-making.
4. Embedded Finance
Embedded finance integrates financial services—such as payments, lending, and insurance—directly into non-financial platforms. For example, customers can link their e-wallet or scan a QR code to pay while shopping online.
This seamless process benefits both consumers and businesses by making transactions faster and easier. Many embedded finance solutions rely on Banking-as-a-Service (BaaS) providers, which enable businesses to offer financial services without building their own infrastructure.
In the US, Target’s RedCard is an example of embedded finance, offering integrated payment options and perks like a 5% discount. Similar models are emerging in the Philippines, making transactions more convenient.
The Philippine payments industry is evolving, driven by blockchain, BNPL, AI, and embedded finance. These innovations are reshaping the way people and businesses handle transactions.
Is your business ready for the future of payments?
Article by Pancho Dizon
Graphic by Brennan Cahilig