The Philippines is a thriving hub of global commerce, with a consumer base that has developed a strong taste for foreign goods.
Take a look at the nation’s online shopping behaviour, which highlights local enthusiasm for imported goods and growing involvement in global commerce. In 2024, one in five Filipinos made an overseas e-commerce purchase at least once a month; cross-border transactions accounted for 28% of total e-commerce sales that year.
E-commerce is on a remarkable trajectory in the Philippines. Over 13.11 million Filipinos shopped online in 2023, a figure expected to grow to 31.6 million by 2029. Weekly online shopping activity reached over 54% of consumers, driven by free shopping, discounts, and streamlined checkout experiences.
A predominantly young, tech-savvy consumer base drives this growth, with those aged 45 and under accounting for 88.9% of all online shoppers.
Amid this e-commerce boom is a heavy reliance on a deeply local payment infrastructure. A single homegrown e-wallet dominates the market with nearly 90% market share, while foreign apps hold only 2%. Local banks continue to support Filipinos’ shopping behaviour — over half of all credit and debit cards are issued by local banks, and more than three quarters of digital bank assets are managed by domestic brands.
These factors reflect a payment ecosystem that is tailored to local needs and fully capable of supporting Filipinos’ growing appetite for overseas goods.
Indeed as demand for overseas products grows, local payment players innovate to ensure seamless digital payment experiences for end users. Key priorities include seamless cross-border interoperability, upgraded local banking apps to compete with e-wallets and digital banks, and e-wallets that integrate cash into digital payment transactions.
These agile and consumer-focused innovations power a payments ecosystem that is both localised and globally oriented, enabling Filipino consumers and businesses to thrive in the digital marketplace.
Key insights for online merchants
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In 2023, the Philippines’ GDP surpassed $437.1 billion with a year-on-year growth rate of 5.55%.
The Philippines has a fast-growing population of 118 million, making it the second largest in Southeast Asia. With over 60% of Filipinos aged between 15 and 64, the country is home to a massive labour force and a predominantly young consumer base eager to embrace digital commerce.
The country’s official languages are Filipino and English, which enhance both domestic engagement and global connectivity.
The Philippines’ service industry drives the nation’s ongoing growth, contributing 62.4% to the economy. These factors have reinforced the purchasing powers of Filipinos and primed the country for the rapid expansion of digital commerce and financial services.
Due in part to rising e-commerce demand, the Philippines is a major importer, recording $135.75 billion in total imports in 2023, led by electrical and electronic equipment. For six years in a row, China has been the Philippines’ largest trading partner, reflecting deep trade relationships that fuel cross-border commerce.
E-commerce takes a spotlight in the Philippines’ transformation, with over 13.11 million online shoppers in 2023 — a figure projected to grow to 31.6 million by 2029, according to Statista. With a compound annual growth rate (CAGR) of 11.27% from 2024 to 2029, the sector is poised for sustained growth.
This ties in with the rising demand for imported goods, further highlighting Filipino consumers’ digital habits, as cross-border e-commerce accounts for 25% of total online sales.
This interest in imported goods emphasises the Philippines’ openness to global commerce while spurring homegrown payment solutions to bridge local consumers with global brands.
Despite these advancements, patchy financial inclusion across income levels continues to challenge consumers. While 53% of Filipinos own savings accounts and 28% have credit cards, there remains an untapped potential among consumers who rely on local and alternative financial tools.
The Philippine government’s payments initiativesTo promote an envisioned cash-lite economy, the Philippine government has spearheaded the following initiatives:
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Key insights for online merchants
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Increasing income levels, high mobile and internet penetration rates, and the growing availability of cross-border e-commerce drive online spending habits in the Philippines. In 2023, the average annual income of Filipino households reached $6,218, showcasing a significant increase compared to previous years.
Household spending that same year was approximately $4,544, with food and beverages accounting for 36% of expenses.
This growing purchasing power signals an economy poised for greater e-commerce activity.
The Philippine Retailers Association (PRA) predicts that the domestic retail industry’s contribution to GDP will continue to increase, reaching around 20% by late 2024 or early 2025.
The retail market in the Philippines is estimated to be worth $66.7 billion in 2024. It is expected to reach $96.02 billion by 2029, with a projected CAGR of 7.56% from 2024 to 2029.
In 2024, 28% of e-commerce transactions stemmed from cross-border purchases, with one in five Filipino shoppers making an overseas e-commerce purchase — a sign of Filipino consumers’ enthusiasm for imported goods.
China, the US, and South Korea are popular countries for cross-border shopping, while platforms like Shopee, Lazada, Amazon, Carousell, and Temu are the preferred choices for acquiring international products.
In the Philippines, 88.9% of online shoppers are aged 45 and under, with 57.2% identifying as male. Mobile-first strategies are critical for this market, as over 90% of e-commerce traffic originates from smartphones.
Internet access has grown widely, with an overall penetration rate nearing 90% in 2024, according to Statista. Filipino internet users spend an average of 8 hours and 52 minutes online daily, engaging heavily with social media, streaming platforms, and e-commerce sites — highlighting how deeply embedded digital behaviours are into their day-to-day activities.
Despite the growth in online shopping, challenges persist. Filipino shoppers rank quality assurance and payment security as top barriers to completing online purchases. About 23% of consumers cite concerns about payment security (trust in payment) as major barriers to completing their shopping orders.
Meanwhile, improvements in delivery services and self-checkout options are viewed as essential enhancements to the online shopping experience.
Some of the Philippines’ most frequently purchased items online include clothing, shoes, cosmetics, and personal care products, highlighting the diverse preferences among consumers. Filipino consumers are mindful of their online purchases, with 69% of consumers finding reviews very helpful before making purchase decisions.
Additionally, 66% of consumers research online for major purchases, while 44% of consumers prefer buying products from different sellers on the same platform.
With increasing digital adoption among Filipinos, new strategic government initiatives, and rising demand for secure and convenient transactions, the Philippines is experiencing rapid development in its payment landscape. Local digital payment providers are meeting consumers’ needs head-on, shaping an ecosystem that empowers consumers and merchants.
The value of domestic digital payment transactions reached nearly $30 billion in 2023, ranking the Philippines the third-largest digital payment market in Southeast Asia, following Indonesia and Thailand. By 2025, the number of digital payment users is expected to reach 66.64 million, with transaction values exceeding $49.6 billion, showcasing the nation’s shift toward a cash-lite economy.
Many consumers in the Philippines don’t have bank accounts and many rural areas lack financial infrastructure. This has driven more consumers to sign up for digital wallets to complete their e-commerce transactions. In 2023, the number of digital wallet users in the Philippines reached 46.2 million, with a projection of nearly 70 million by 2028.
GCash, a homegrown brand, leads the market with a dominant market share of 89%, followed by PayMaya and GrabPay. These wallets thrive because of their user experience and, in the case of GCash and GrabPay, adjacent businesses with large consumer bases (GCash started out as a messaging-based money transfer service from Globe Telecom, while GrabPay is embedded into the popular Grab super app). Collaborations like Alipay+ and GCash make local e-wallets usable outside the country, enabling a convenient payment experience for Filipinos traveling overseas.
Cards, including credit and debit cards, face steady competition from digital wallets. In 2023, credit card payments in the Philippines reached approximately PHP 1.7 trillion, while debit card payments totalled PHP 1.2 trillion. Local card brands lead the market share, followed by Mastercard and Visa.
Bank transfers, driven by InstaPay and PESONet, have gained significant momentum, particularly due to the growing use of digital banking. Digital banking through the use of InstaPay and PESONet has made transfers and local payment methods fast, easy, and efficient for users.
In Q1 2024, local payment methods increased by 33% year-over-year and this trend is expected to continue. These real-time transfers offer seamless user experiences, further strengthened by the interoperability among apps, making purchases and payments effortless for Filipino users.
The BSP’s National QR Payment Standard (QRPh) continues to set the benchmark for interoperable digital payment systems in the Philippines, offering the easiest and fastest way to make payments. QRPh is accepted at over 160,000 merchant locations nationwide, including businesses and government agencies, highlighting how deeply integrated QR code payments has become in the country. This widespread use of QRPh reflects the government’s commitment to establishing a standardised and inclusive payment framework.
Cash is still one of the most popular payment methods in the Philippines, mainly because many people do not have bank accounts. However, cash transactions are expected to drop from 47% to 27% of total payment value from 2019 to 2025, reflecting a shift to digital payments. Notably, cash enables digital payments for many Filipinos. Consumers frequently pay with cash at convenience stores and sari-sari stores (small roadside stores) to deposit funds into digital wallets or pay for online transactions, bridging gaps for the unbanked population.
Remittances from overseas Filipinos are a significant pillar supporting the Filipino economy. Personal remittances in 2024 were at $38 billion, with inflows from the United States, Saudi Arabia, Singapore, and the United Arab Emirates.
Digital remittance services offer fast solutions for overseas Filipinos who want to transfer money to their families, with platforms now offering competitive exchange rates and lower convenience fees. Large remittance service brands like M Lhuillier and Palawan Pawnshop have created their own apps with built-in mobile wallets.
BNPL services are gaining traction among Filipino consumers. Projected e-commerce-related BNPL spending is expected to reach $57 million by 2025, with platforms like BillEase and TendoPay catering to budget-conscious shoppers in the Philippines.
The steady interest in BNPL is driven by a significant unbanked population and low credit card usage, offering flexibility and responding to consumer preferences.
As the Philippines undergoes rapid digital transformation, online merchants have an unprecedented opportunity to engage a young, mobile-savvy, and increasingly connected consumer base. Rising incomes, high internet penetration, and strong mobile usage have turned the Philippines into a key player in the global e-commerce landscape.
Businesses that understand and respond to the preferences of Filipino shoppers can unlock meaningful growth.
To win over Filipino consumers, businesses should prioritise offering local payment methods. Adopting digital wallets and mobile payment options can help build consumer trust by ensuring seamless, familiar checkout experiences.
Build on that trust by enhancing risk management and security features. Implement stronger security features and effectively communicate them to end-users. Educating consumers on data privacy and fraud prevention through official channels reinforces trust and confidence in your platform.
To meet local expectations, merchants should incorporate consumer-centric features like discounts, free shipping, and smooth checkout processes. These incentives are not only attractive, but expected by many shoppers.
Additionally, the growing appetite for imported goods creates space for businesses to tap into cross-border e-commerce. Supporting global payment methods and flexible checkout options – regardless of a shopper’s location – can help meet this demand.
As over 90% of e-commerce traffic in the Philippines comes from smartphones, put a mobile-first strategy on your priority list. Adopting seamless app experiences and payment marketing for using specific payment methods will effectively convert casual browsers into paying customers.
Merchants should also consider hybrid payment models that include cash-to-digital options. Many consumers in the Philippines remain unbanked or underbanked, making it vital to accept payments through convenience stores or other accessible outlets.
Finally, Buy Now, Pay Later (BNPL) options are gaining traction among budget-conscious shoppers and can significantly enhance conversion rates when integrated thoughtfully.
The Philippines’ predominantly young, tech-savvy consumers have embraced cross-border commerce while relying on local payment solutions.
Yet challenges such as financial accessibility, payment security, and data protection remain real concerns — making a strong case for continued efforts from both private and public sectors to bridge these gaps.
Local digital payment providers and fintech companies are quick to respond to consumer needs, helping Filipinos easily connect with local and global brands. Responsive government policies, such as the BSP’s Digital Payments Transformation Roadmap and QRPh, serve as strategic directions for a cash-lite economy.
The growth of payment methods, particularly digital wallets and QR code systems, highlights the adaptability of Filipino consumers and businesses alike. While traditional payment methods such as cash still play a role in facilitating inclusivity, the rise of solutions like BNPL and enhanced cross-border payment capabilities are expanding opportunities and fostering financial participation on a broader scale.
Merchants can tap into these opportunities in a variety of ways — from meeting the demand for imported goods, to enhancing mobile shopping experiences and building consumer trust through enhanced payment security solutions. The Philippines is a growing force in the e-commerce space, where connections cross borders and economic potential continues to gain momentum.
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Antom is a trusted partner for businesses eager to enter and thrive in the Philippines dynamic payment ecosystem. With extensive market experience and tailored solutions, Antom helps businesses access the country’s most popular payment methods and provides the tools for success.
Antom empowers merchants to connect with millions of Filipino shoppers across the country. Through tailored solutions to help meet business and consumer needs, Antom will help your business grow. By partnering with Antom, businesses are not just accessing a payment solution, they are taking the next steps for growth in one of Southeast Asia’s most thriving markets.
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