THE VALUE of InstaPay and PESONet transactions climbed by 38.8% year on year as of end-March, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Transactions coursed through the two automated clearing houses jumped to P5.29 trillion as of end-March from P3.81 trillion in the same period a year ago, central bank data showed.
The volume of transactions done via InstaPay and PESONet also surged by 71.5% to 530.49 million as of March from 309.29 million a year prior.
Broken down, the value of transactions done through PESONet stood at P3 trillion at end-March, 32.4% higher than P2.27 trillion the previous year.
The total volume of PESONet transactions also rose by 19.6% year on year to 28.2 million in the period from 23.6 million as of March 2024.
Meanwhile, the total value of InstaPay transactions increased by 48.3% year on year to P2.29 trillion at end-March from P1.54 trillion.
The volume of transactions that went through the payment gateway likewise surged by 75.8% to 502.3 million from 285.7 million in the comparable year-ago period.
PESONet and InstaPay are automated clearing houses that were launched in December 2015 under the central bank’s National Retail Payment System framework.
PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks.
Meanwhile, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.
“The continued strong growth in InstaPay and PESONet transactions could reflect the continued strong growth in the country’s online business transactions that require safe, reliable, and credible digital payment systems, especially for large peso amounts,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
“More people may have found more value and convenience in using InstaPay and PESONet as alternatives to using checks and other over-the-counter banking transactions,” he said. “This may also reflect the increased use of e-wallets by Filipinos that are also interconnected with the banking system, electronically through InstaPay and PESONet.”
Latest central bank data showed digital payments made up 52.8% of the volume of retail transactions in 2023, higher than the 42.1% share in 2022.
In terms of value, 55.3% of retail transactions in 2023 were done online, higher than the 40.1% the year prior.
The central bank earlier said the increase in digital payments was driven by wider use of online transaction channels, especially e-wallets, among individuals and businesses, with the coronavirus pandemic accelerating the shift.
The BSP wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028.
“The relatively faster growth in InstaPay and PESONet transactions could also reflect increased financial literacy of Filipinos that also facilitated more investments and capital market transactions locally and also with the rest of the world,” Mr. Ricafort added.
The share of Filipinos with bank accounts reached 65% of the adult population in 2022, the BSP said. — Luisa Maria Jacinta C. Jocson
