Retail digital payments in the Philippines reached 64.7% of total transaction volume in 2025, meeting the official target set by Bangko Sentral ng Pilipinas (BSP), the central bank announced, Inquirer reports.

The figure represents a clear increase from the 57.4% registered in 2024, as consumers and enterprises across the archipelago continue to abandon paper cash for electronic settlement platforms.

The rapid transition highlights how emerging economies across Southeast Asia are modernising legacy financial systems to reduce transaction costs and extend formal banking services to previously underserved populations.

This performance brings the country comfortably within the 60%-70% target range outlined under the Philippine Development Plan 2023-2028. Central bank metrics show the shift was driven by a 69.4% jump in active digital payment accounts, alongside a 36.3% expansion in commercial merchant locations equipped to process cashless payments.

“The BSP continues to work closely with industry and government partners to expand digital payments to benefit more Filipinos and the economy as a whole,” said BSP Governor Eli Remolona Jr.

Remolona pointed to mandatory system compatibility as a major driver of adoption across the country, adding: “A lot of the growth is due to our insistence on interoperability, ensuring that a growing number of businesses and service providers are on one system.”

Monetary authorities aim to lock in these gains by pulling micro-merchants into the nationwide processing grid. Securing full operational coverage across rural provinces remains key to sustaining long-term financial inclusion.