InstaPay, PesoNet transactions hit P310 billion

MANILA, Philippines — Digital payments through the automated clearing houses established by the Bangko Sentral ng Pilipinas (BSP) reached P310 billion from March to May or during the height of the community quarantine to limit the spread of the coronavirus disease 2019 or COVID-19.

Carmelita Araneta, general manager of the Philippine Payments Management Inc (PPMI), said there has been an increase in the value and volume of transactions under the InstaPay and the PESONet since the entire Luzon was placed under lockdown in mid-March.

“The increase in InstaPay and PESONet transactions show that Filipinos have adopted digital payments as part of the new normal. Many business owners and individual users have seen the value, convenience and safety of using e-wallets,” Araneta said.

She said InstaPay transactions reached P175.51 billion from March to May, 54.4 percent higher than the value recorded from December to February, while PESONet transactions jumped by 34 percent to P134.04 billion.

Data released by the PPMI showed the number of InstaPay transactions surged by 76.2 percent to 29.53 million from March to May compared to 11.57 million from December to February, while that of PESONet transactions spiked by 89 percent to 6.90 million transactions.

“As our economy slowly adjusts to the realities of the pandemic, we believe that digital payments will become a regular part of the way we conduct our transactions,” Araneta said.

PESONet, launched in November 2017, is appropriate for high value transactions of companies, other businesses, government entities, and individuals, while InstaPay, introduced in April 2018, is used for urgent and small value retail transactions of up to P50,000.

Jan Paula Fabro, owner of iPalengke, noted her sales plunged by 50 percent on the first week of the lockdown, but she was able to immediately adapt with the help of the e-payment solutions.

The family-owned online business that sells fruits, vegetables, seafood, chicken, and meat to consumers slowly recovered and eventually saw incremental, but steady increase in sales throughout the lockdown.

“We initially had a problem with our supplies because most of it is sourced from Baguio and Pangasinan, and there were lockdowns going in and out of Metro Manila. There was high demand, and thankfully, the government saw this so they eased restrictions,” Fabro said.

A major factor that helped iPalengke succeed is the use of digital payments and e-wallets.