Globe: Rise in digital payments to sustain economic recovery

THE increasing popularity of digital payments over the past five months could sustain the Philippines’ economic recovery, according to Globe Telecom, Inc.

“The surge in the adoption of digital payments coincides with the steady easing of inflation rates, which contributes to an increase in consumer purchasing power. This, combined with a drop in unemployment numbers, creates an environment conducive to economic growth,” Globe said in a press release on Wednesday.

Headline inflation slowed to 5.4% in June from 6.1% in May and in the same month last year. This is the slowest price movement in 14 months.

Meanwhile, the Philippines’ unemployment rate in May eased to 4.3%, slower than the 4.5% in the previous month and the 6% in the same period last year.

Globe said the Bangko Sentral ng Pilipinas’ (BSP) plan of shifting 50% of total retail transactions to electronic channels under the Digital Payments Transformation Roadmap will bode well for the country’s recovery.

“The shift to digital payments means faster and more convenient transactions, real-time cashflow for merchants, and quicker movement of goods and services, which all redound to a more vibrant economy. We, at the Globe Group, are ready to support this growing shift with our suite of digital solutions,” said Ernest L. Cu, Globe’s president and chief executive officer.

The BSP also plans to increase the number of Filipino adults who use digital payment services to 70% before the end of the year.

In the BSP’s 2022 Status of Digital Payments report, the share of digital payments in total retail transactions in terms of volume rose to 42.1% or 2.04 billion from 30.3% or 1.43 billion in 2021.

“At Globe, we’re deeply committed to empowering our country through technology. We’re poised not just to help the government meet its goal in terms of digital payments, but also to lead the way in shaping an inclusive, progressive retail payment landscape that thrives on innovation and accessibility,” said Mr. Cu. — Justine Irish D. Tabile