PLDT unit launches cashless payment partnership with SM

CEBU, Philippines — PLDT Inc’s digital financial unit PayMaya Philippines has launched in Cebu its partnership with The SM Store for cashless payments, as it banks on the potential growth of digital transactions in the Philippines.

“The retail landscape is changing," SM Store president Chelo Monasterio said, noting shopping should now be made more convenient.

Physical stores also now have to compete with online shops, thus tapping the digital payment scheme is key.

“More and more Filipinos are using cashless payments with PayMaya, and we're excited to work with like-minded companies such as SM in innovating on the retail shopping experience with the help of our payment technologies,” said PLDT chairman Manuel Pangilinan in a statement.

The digital firm's partnership with SM for QR-based payments builds on its objective of building a “cashless Philippines” in line with the National Retail Payment System initiative led by the Bangko Sentral ng Pilipinas that aims to increase the share of electronic transactions in the country by 20 percent in 2020.

Through PayMaya QR, shoppers at The SM Store in SM City Cebu and Seaside Cebu can simply open their PayMaya app, tap the “scan” button, and point their phones at the special QR codes displayed at store’s mobile pay lanes to complete their transactions.

PayMaya had partnered with various companies to create more cashless payments in the country.

The company earlier inked a deal with Golden Arches Development Corp, which operates the local chain of McDonald’s stores.

It also partnered with Robinsons Retail Holdings Inc (RRHI) last November, allowing its stores to use PayMaya’s QR scan-to-pay system for cashless payments.

It is also accepted for transactions in online marketplaces such as Lazada and Zalora, as well as in online booking services of Philippine Airlines and Cebu Pacific.

GCash, the digital services arm of Globe Telecom, has also expanded presence in physical retail establishments.

GCash is an accepted mode of payment in Ayala-operated malls nationwide, as well as stores under RRHI such as Robinsons Department Store, Robinsons Supermarket, and merchant brands Topshop, Topman, Dorothy Perkins, among others.

In an earlier study called “Digital Payments: Thinking beyond Transactions”, PayPal said the adoption of digital payments is having a big impact on the financial lives of consumers and businesses in the Philippines.

The research highlighted the positive impact digital payments can have on consumer and merchant welfare by reducing inefficiencies and unlocking economic opportunities.

The Philippines is well on its way to be a cashless nation, with 25 percent of consumers surveyed indicating that traditional (physical credit card, bank transfer/internet banking, cheque etc.) and new payment methods are now their primary options. In fact, one third of consumer respondents in the Philippines have already started transacting without cash.

Digital payments offer not just convenience and a more secure way to pay, but also provides consumers with more options. Most respondents (74 percent) cited convenience as a reason to use digital payments. Another 57  percent said it was because of the lower processing and transaction fees they received when using digital payments. Interestingly, 27 percent of respondents prefer new payment options because of the increased amount of promotions they received as compared to 23 percent who use traditional methods and 12 percent who use cash.

The study also revealed that digital payments have provided consumers with the tools to better manage their finances, in particular, one of the most challenging financial issues faced by consumers – bill payments. Among those surveyed, 54 percent of consumers who rely on cash have difficulties managing their bills / credit payments compared to a smaller proportion (29 percent) of digital payments users. The ability to track payments, pay instantly, and the choice of payment methods can be a boon to managing consumers’ cash flow and their financial health.

Digital payments offer a transformational solution for merchants because they increase convenience for consumers. Additionally, merchants are able to reap large efficiency gains transitioning from cash to digital payments and moving away from manual to electronic financial tracking.

The Philippines government is making great strides in rallying Filipinos to adopt digital payments, including the launch of the National Retail Payments System (NRPS) Framework, which seeks to create a reliable electronic payment system between banks and e-money accounts.

"Yet, the country is only scratching the surface of what it could be. Industry players and government regulators within the payment ecosystem need to collaborate to further drive adoption of digital payments and unlock the full potential of this new payment method," PayPal said.