Annual Visa Consumer Payment Attitudes study reveals significant decline in cash payments amid rise in cashless transactions.

The cashless wave continues to gain momentum in the Philippines as consumer habits shift away from cash dependence, and more towards usage of cashless payments. This is according to Visa’s latest Consumer Payment Attitudes Study, which indicates a notable decline in cash usage to 87%, from 96% in 2022.

The Visa Consumer Payment Attitudes Study is an annual study covering payment behaviors of Filipino consumers when it comes to digital payments, digital banking and the future of commerce. The latest edition is in its 10 th year running and was based on interviews conducted in October to November 2023 with 1,000 Filipino consumers aged 18-65 years old, spread across different cities/regions and income brackets, with the minimum monthly income being PHP 12,000.

The cashless wave continues.

Driven by the younger (Gen Z and Gen Y) and more affluent segments, Filipino consumers are increasingly embracing cashless transactions, going without cash for an average of 10 days. Specifically, card payments usage was at 70% (including swipe / insert, online, and tap-to-pay / contactless payments) in 2023, while mobile wallets usage stood at 87%, on par with cash transactions.

43% of Filipinos who were surveyed now carry less cash in their wallets mainly due to the growing consumer habit of using cashless and contactless payments, alongside the increasing acceptance of cashless payments among stores & merchants.

Supermarkets (88%), food and dining (86%), and bill payments (82%) are the leading merchant categories that consumers observed to have opened up acceptance of cashless payment methods compared to a year ago.

“Filipinos are becoming more comfortable with cashless payments, and we are confident that they will continue to embrace new innovations in the digital payment landscape,” says Jeff Navarro, Visa Country Manager for the Philippines. “With growth attributed to increasing payment acceptance across merchants for cards, both dip and contactless, as well as mobile wallets, Visa remains committed to ensuring a seamless transition to a cash-lite society by providing secure and convenient digital payment solutions.”

Growing acceptance and usage of contactless payments among Filipinos

Contactless payments – including contactless cards, QR codes, and mobile wallets – are driving the growth of cashless payments in the country.

According to the study, about 9 in 10 Filipinos are aware of and interested in using contactless cards and QR codes when paying for their transactions. Specifically, 32% of Filipinos used contactless cards for their payments in 2023, mainly driven by the affluent population. Meanwhile, 55% used QR codes, with at least 50% adoption across age groups except for consumers aged 59-65 (31%).

Visa Country Manager Jeff Navarro highlights the results
of the latest Consumer Payment Attitudes Study.

Among mobile wallet users, paying through QR codes is the most preferred method for 38% of consumers, making mobile wallets the most preferred funding source for QR payments. Scanning the QR code in-store is the preferred mode of payment by 78% of its users.

When travelling overseas, Filipinos prefer to use cards for cross-border payments, where 55% of consumers prefer debit and credit cards for the convenience, time savings, and hassle-free user experience. An emerging trend is the use of QR codes for cross-border payments, with 37% of Filipinos currently aware of and have tried using it. Meanwhile, 69% of those who have not tried it have expressed interest in using it in the future.

Road to a cashless society

With the shift to digital forms of payment, 52% of consumers are confident to go without the use of cash, and rely on cashless payment methods entirely for at least a week. Moreover, 1 in 3 consumers (37%) believe that the Philippines will be a cashless society by the year 2030 – if not sooner.

Mr. Jeff Navarro, Visa Country Manager for the Philippines.

“Our study shows that the cashless wave is maintaining its momentum in the Philippines. We are moving closer to achieving a cashless Philippine society, but we still have some way to go,” said Navarro. “Visa plays a strategic role in the payment ecosystem to drive financial and digital inclusion by partnering with the government, banks and financial institutions, and fintechs to support the development of digital payments in the Philippines. We are supporting the digitization journey in the Philippines – such as Bangko Sentral ng Pilipinas’ Digital Payments Transformation Roadmap – by providing consumers and businesses with convenient, seamless and safe digital payment solutions.”

7 Tips on How to Use a Credit Card Wisely.

Credit cards can be scary for some people. I have friends who have refused credit card offers not because they don't like the credit card per se, but because they're afraid of the debts they may incur, the high interest rates, and the time it will take for them to pay off their balance. 

As someone who has been using credit cards for almost two decades (I got my very first primary credit card when I was 22), I'd usually tell my friends and peers to not be afraid of credit cards and instead think of these microchip-embedded plastic rectangles as their ally, their weapon, and their best friend. That's how I usually think of my credit cards, and over the years I've reaped countless of benefits from being a credit card user - from discounts to cash rebates, to gift certificates, mileage rewards, and restaurant treats... but  the biggest benefit of all would have to be my multiple entry visa to South Korea. 

Of course, these benefits come with responsibilities because just as the saying goes, "With great power comes great responsibilities". And with that, here are some tips on how you can maximize your credit card without getting into debt:

Photo credit: Money Digest

Set a budget

Overspending with your credit card is an easy trap to fall into. We've seen this scenario many times over in movies and TV dramas - girl walks into a store and plans to buy just one item, leaves the store with several paper bags in tow and a maxed out credit card.

However, this can be avoided if you set a budget on how much (or how little) you can spend using your credit card. Having a realistic idea of the amount you can spend AND pay off will keep you from swiping nonchalantly and buying things that you don't actually need. 

Monitor your purchases

Once you've calculated the amount that you can afford, the next step is to keep track of your purchases. Make sure not to spend beyond the limit that you've set, and avoid using your credit card until you have paid off your balance. Not only will this kind of mindset keep you out of debt, it can also help you in building a good credit score.

Photo credit: Tara Winstead on Pexels.

Take note of your savings

When using your credit card, you must also be cognizant of your savings and bank account balances. Personally, I wouldn't want to make charges with my credit card if the cash that I have on hand or the funds that I have in my bank account won't be able to cover it when it's time to pay my bill. 

That being said, I make sure to check my bank account balance on a regular basis and set savings goals with the help of this Savings Calculator. Doing so helps me map out my finances better, allows me to make better financial decisions, and prevents me from spending beyond my means.

Be wary of the fees

Aside from the interest rates and the annual fee (which can actually be waived based on certain conditions), you should be aware of other credit card fees and how you can avoid them. For instance, you can avoid late fees if you pay ahead of time. Don't make cash advances to avoid cash advance fees. Most importantly, don't spend beyond your credit limit to avoid over-the-limit fees. 

Reap the rewards

Different credit cards have different benefits. Some credit cards offer cashbacks or rebates with dining transactions, while some have travel rewards. Other cards offer discounts at hotels, waived checked baggage fees, and even insurance for your high-end gadgets. Take note of the benefits that your credit cards have to offer and keep these in mind as you spend using your credit cards. 

Yue with his Nintendo Switch OLED, which I paid for with my credit card. 

Opt for installment

Credit cards can come in handy if you're planning to buy high-ticket items such as electronics and household appliances. Purchasing via a zero interest installment plan allows you to spread your payments, stretch your money, and manage your cash flow better.

Pay in full and on time

This is the golden rule when it comes to credit cards. While credit cards come with rewards and benefits, they also come with interest rates if you don't pay on time. 

Paying only the minimum amount incurs interest to your balance in each month until you have paid in full, and this could be more costly in the long run. To avoid late payment fees, interest charges, and those annoying reminder calls, make sure to pay the full amount on or before your due date.

There's nothing to be afraid of if you know how to use your credit card wisely. With proper understanding on how your credit card works, you'll gain convenience, a smooth cash flow, a solid credit score, and even save money in the long run. 

Budgeting During the Pandemic.

The COVID-19 pandemic has definitely made life difficult for everyone. Regardless of the socioeconomic status, this pandemic continues to sweep across the globe and cause damage in almost every aspect of our lives - physical first and foremost, as well as emotional, mental, and social, at times spiritual, and worst of all, financial. 

Aside from the health and wellbeing of millions of people, this disease has also threatened the livelihood of many - from entrepreneurs, to small and medium-sized enterprises, and even established companies and large scale industries. Many have lost their jobs, most businesses had to close temporarily, and some even had to totally cease operations or file for bankruptcy. 

During these trying times, how can we manage our money and take care of our finances? Here are some tips on budgeting during the pandemic.

Budgeting is very important, now more than ever.

Analyze Your Situation

There are three things to consider for you to be able to get a good grasp of your financial situation - your earnings, your expenses, and your savings. If you still have a steady income despite the pandemic, that's great. But if you or anyone from your household has been laid off or given a salary cut, then there's definitely a need to make adjustments to your budget.

You also need to check your savings as this can tide you over and help you with your expenses. Having a bit of money saved is good, but having saved more is better since we really have no idea as to when things will get back to normal. 

Prioritize Your Expenses

Before you check out that luxury brand lipstick or limited edition sneakers from your online shopping cart, think twice or thrice and ask yourself - "Do I really need this right now?" 

When it comes to spending, you need to prioritize the essentials first: food, utilities, housings costs, and insurance. These are your non-negotiable expenses - basic needs that you really need to spend money on month after month. 

Lee Sung Kyung in Weightlifting Fairy Kim Bok Joo (2017).

Then comes your variable expenses, or costs that can change over time. This includes your spending on gas, clothing, personal care products, travel and recreation, or even that Venti Flat White that you have to have every morning on your way to work - or so you think. Categorizing your expenses will help you determine which ones are the most important, and which ones you can do without. 

Spend Wisely

Work hard, be frugal, spend smart. 

Spending money wisely means getting the most out of your money's worth. You can do this by taking advantage of sale events, couponing (using vouchers to get discounts on products), and using cash back apps if you are purchasing online. With the cash back feature, you get back a percentage of the money you spend. Some credit cards also offer cash back programs, but be wary when using your credit card as there is a tendency to overspend when you're mindlessly swiping (or tapping) at the check-out counter. 

Jin swiping his rare Black Hyundai card.

Reduce Your Debt

Budgeting, saving money, and paying off your debts might seem impossible with the current financial situation. There is a way to work around this, only if you avoid adding more to your debts. Because of the pandemic, many companies are giving leeway to customers and helping them work around their bills by extending payment due dates and reducing interest fees. Some companies even have payment schemes to help their customers get by during these trying times. Get to know more about debt payoff here.

Without a doubt, the COVID-19 pandemic has plunged us into a whole new world of uncertainty. But with the right budget and a positive mindset, we will be able to get by. Always see the good in everything. And as the cliche goes, every cloud has a silver lining. 

The Genius That is Online Shopping.

Not too long ago, most people were wary about using the Internet for making purchases. Today, shopping online with places like Peak Boutique is the norm as more people are appreciating the benefits of shopping online.

Understanding why online fashion is becoming more attractive is fairly easy. Considering that many people spend a considerable amount of time at work, running to a crowded mall might not be their first desirable place to be. So to accommodate shoppers, fashion stores are putting up show all over the web.

Here are more things to consider as you feel secure enough to use your credit card online to buy that favorite outfit or latest fashion trend.

Photo credit: Wall Street Journal.

Online Boutiques Never Close
After a long hard day at work, you might decide to go shopping at midnight. However, all the stores are closed. What can you do? Wait until the weekend and join all the other shoppers looking for parking spaces on the mall parking lot? Perhaps. Or, you can boot up your computer and go shopping at one of your favorite online stores.

That is the genius of shopping online. You can conveniently buy what you want or need at any time of the day or night. Of course, your order might not be processed until the next day when workers are awake. Still, there is a good chance that your items will arrive within a few days.

Faster Research before Buying
Offline, you might have to go to several stores within one or several malls before you find the perfect shade of red. On the Internet, however, you can research different shops with just a few clicks. You can also read reviews about the store and/or items that you are considering before you spend any money.

You save time, money and the disappointment of driving all over the city in hopes of finding what you want.

Some Shops Have Better Deals
More often than not, you can find better bargains online than walking into a shop. Online stores usually have a great deal of competition to win over customers. As a result, you get better deals online.

Indeed, online shopping growth has even sparked high end fashion brands to vie for customers. They too offer discounts and sales regularly to build and sustain a fan base of customers who enjoy the convenience of shopping online.

This hassle-free way of buying without leaving your house will continue its evolution.

How to be Frugal?

One of the problems people encounter these days is the fact that we have nothing to get during emergencies simply because we haven’t saved any even from the start. Technically, that’s one of the attitudes mostly people have. In other hand, there are some ends up saving nothing due to other expenses that are needed to be prioritized. Yet, still not a good practice though. Thus, we end up owing our friends, and relatives and such.

What could possibly the best solution to it? There you asked. Of course, in every problem there are solutions. Good thing that we have options to choose for. So far, the best way to solve this issue is to learn how to save and of course learn how your savings grow too.

There are plenty of ways on how on how one can successfully save. And the following are just some of the stuff that can help individuals like you.

• Always keep in mind, in order to get success in saving never to forget the best formula= Income/Salary minus (-) Savings equals (=) Expenses/Budget for the whole season (it can be good for month or weeks).
• As much as possible, learn to list down all the things needed to be bought and to be paid off for the entire season until you get the next budget.
• In terms of food, it’s really advisable to cook in your own. It doesn’t just help you save but it also keeps your family safe and healthy compare in consuming those foods available in the market or fast-food chains. 
• Always try to canvass for products’ prices. It will help you save more especially that there are varieties of brands of products are out in the market these days.
• Try to avoid using credit card/s. Although it can help us in other means yet it is not really helpful in saving up your money for the future. Unlike borrowing to friends, credit card needs you to pay for interest which makes it not really a helpful source.

If you’re on a budget, these practices are really good to apply. It will not just help you to be practical but it will also help you to be responsible in different fields too.

Meanwhile, saving has a lot of purposes too. Aside from keeping it for emergency needs, it can also help individuals and you, yourself too! How? Simple, the following are just some of the ways on how both parties could benefit of your money:

• Depositing your money to (a) bank/s. It’s very common for individuals who are saving to put up their money in banks. Aside from keeping it safely, it also grows through the interest paid by qualified borrowers of the bank/s. In other hand, you don’t just earn by the interest but you also earn a good deed by helping those people during in their need.
• Investing it to business/es. Aside from putting your money to bank, investing it to a business is also a good idea especially that there are varieties of businesses available to choose for, Binary Options (try to read http://binaryoptionstrading247.com/ for more details about it) for instance. However, before fixing your decision try to look for a good business that is suitable for you and at the same time can really help you earn or double your money then since not all businesses give good outputs.

How can it help individuals? Probably, if you start up a business there you could help individuals looking for a work or other sources of income to earn too. And if you come up with a good one, you will be able to open for a position or positions rather that job seekers may find. There, you can help them in that way.

These are just some of the ways on how one can earn out from his or her savings. After all, it will just depend on the person if he or she prefers to keep it safe and never risk his or her money at all or perhaps, does it and earn instead. In short

Shopping Doesn't Have To Be Boring

Planning a holiday is very exciting, and most people look forward to trips away as one of the most exciting of the year. Shopping is often considered a key factor in choosing where to visit, especially if you are looking to spend some well earned money. Shopping is not always loved by everyone, and finding the best places to shop can make your trip away. Here you will see that shopping can be fun and interesting if you know where to go.

Sydney, the major city of Australia is one of the best shopping cities in the world, and many tourists visit due to its great variety of products on offer, and places to buy them.

Sydney Harbour.

One of the biggest and most exciting places to do some shopping is the new Westfield shopping centre. Here you can find four floors of your favourite shops, and a huge variety of local and international places to buy gifts, whether its clothes, music, furniture, books or anything else you could think of.

For a unique place to do some shopping, do head on over to The Strand Arcade. Here is the places to visit when looking for young Australian designers and handcrafted jewellery. Here you will also find the large Myer and David Jones department stores, which have something for everyone.

Paddington Market, another great place, is perfect for shopping if you want a quirky mix of home wares, fashion, and a cool cafe culture. It is held every Saturday and is probably the most popular market in the city when it comes to shopping.

Next up when looking for exciting places to do your shopping is The Rocks. Often considered the heart of Sydney, the Rocks has everything from Australian art and souvenirs to historic products, second hand clothing, and interesting jewellery. It is also a great place to get some amazing views of the Harbour.

Once you have done with all the shopping, it is best to wind down with something to eat and take in some of the local cuisine. Surry Hills is a great area with some nice small restaurants and cool cafes.

Enjoy more spending during your holiday in Sydney with American Express credit cards which offers great reward program for your shopping as well as travelling, dining and entertainment tickets. You can also compare credit cards to see what offers may suit you best.

Online Exclusives from BDO!

Shopping online is now more rewarding than ever. Get exclusive perks and privileges when you use your American Express Credit Card or BDO Credit Card in the following websites.

Promo runs until February 29, 2012.

For more details, visit the promo page of BDO's official website.

A Little Help Goes A Long Way.

In light of the recent tragedy that befell Cagayan de Oro, Iligan City, and Dumaguete, my fellow mommy bloggers and I are appealing for your help. The easiest way would be donations through the Philippine Red Cross. If we can work together, the littlest amount that you can give (that's a measly Php 5) to our 'kababayans' can go a long way. Donations can be made by simply following these instructions:


For Globe subscribers:
via SMS, c/o Red Cross – text RED <amount> and send to 2899 – valid donation amounts are P5, 25, 50, 100, 300, 500 and 1000 (For ex, RED 10). Transaction is free.
via GCASH, text DONATE<space><amount><space><MPIN><space><REDCROSS> and send to 2882

For Smart subscribers:
via SMS, c/o Red Cross – text RED <amount> and send to 4143 – valid donation amounts are P10, 25, 50, 100, 300, 500, 1000 (For ex, RED 10).

Donations made through Paypal and credit card are also accepted. Also listed in this page are the bank accounts where cash / check donations can be deposited.

While most of us are looking forward to Christmas Day (which is just a few days away), the people from these afflicted areas can only think of how they will be able to live after this devastation. Let us, in our own little ways, extend help to our grief-stricken brothers. After all, Christmas is about giving and sharing.

Enjoy the Holidays with Free Treats!

The Yuletide season has always been synonymous to spending and expenses. And if you're one of those who finished their Christmas shopping way, way ahead (like me, for instance), I'm sure that by this time you're already balancing your checkbook, calculating what is left of your earnings, and anticipating your credit card bills.

But since 'tis the season to be merry, we can always save the worrying for next year and just make the most out of the holidays. On that note, why not enjoy a free holiday treat from these stores?

If you're a BDO credit card holder and have spent at least Php 2,500 on a single transaction, you can start claiming your free treats from any of the merchants pictured above.

We redeemed one yesterday, and look at that eager beaver, ready to pounce on his goods from Brownies Unlimited. 

After all, who won't be able to resist these uber moist and chewy brownies? Even I would ruin my diet for a piece (or two) of that.

So instead of fretting over your charge slips, why not put them to good use and give yourselves a treat?

Promo runs from November 20, 2011 to February 29, 2012. For more details, click here.