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The Ultimate Guide to Cashless Transactions

Dec 1, 2020 5:56:00 PM

Filipinos are tech-savvy folks. That’s why it can be surprising that cash is still king in the country, with only 1% of payments made electronically in 2015. In addition, more than 80% of online sellers have said that they prefer cash on delivery as a payment method.

Still, there are promising changes. For one, the Bangko Sentral ng Pilipinas (BSP) reported that there are more than 8.8 million active e-money accounts in the Philippines in 2019. This is a staggering 76% increase from 2018. Moreover, an estimated 20.6 million prepaid cards have been linked to e-wallets in the same period.

The COVID-19 pandemic also accelerated the average Filipino’s acceptance of cashless payments and transactions. In fact, by the end of 2020, PayMaya has recorded more than 28 million customers. This is a considerable increase from 2018’s 8 million users.

It’s safe to say that many of the new sign-ups were driven by quarantine measures and a desire to prevent unnecessary exposure to the virus. Health and safety aside, however, taking the cashless route presents many more advantages. Speed and convenience are among the top benefits, with real-time transaction records and 24/7 access to useful features such as bills payment, bank transfers, and even government payments.

For a more in-depth look into cashless transactions and what it can do for you, read on below.

Banking Cards (Including Credit and Debit Cards)

One of the simplest approaches to a cashless lifestyle is the use of banking cards. Debit cards are particularly more accessible and thus more commonly used. For instance, a large number of companies in the Philippines help their employees acquire debit or cash cards for payroll purposes. These banking cards can then be used for cashless transactions; they can also be linked to e-wallets like PayMaya for easier funding and contactless payments.

If you need ideas on how you can maximize these payment or banking cards, here are a few suggestions:

  • Debit Card vs. Credit Credit: When to Use Each Type of Payment Card. To make the most of your hard-earned money and stretch your budget, you should know when to use your debit card or credit card. Here are some tips so you can always use the right type of payment card to suit the situation and the purchase.
  • 7 Tips for Safely Using Your Debit or Credit Card. Some Filipinos continue to be skeptical about electronic banking due to security and privacy concerns. However, there are plenty of ways to protect yourself and enjoy the benefits of digital financial tools. Check out these tips to help keep yourself safe.
  • Credit and Debit Cards: What Are They and How Do They Work? The key to using credit and debit cards more effectively is to understand their differences and how they work. PayMaya provides you with an easy-to-understand guide with this article.
  • 4 Ways to Save Money While Using Your Debit Card. Debit cards are great for cashless transactions and linking to your PayMaya account for hassle-free funding. With these simple tips, you can also use your debit card to save money! 
  • 6 Tips for First-Time Credit Card Users. Some Filipinos are hesitant to use credit cards for fear of getting into debt. However, when used responsibly, a credit card is actually a powerful financial tool. Here are some tips from PayMaya to first-time users to help you make the most of your credit card.

Gift Cards, Vouchers, and Cashback

It’s undeniable that Pinoys love gift cards, vouchers, coupons, and cashbacks. Beyond being a great (and fun) way of saving money, these are also perfect for supplementing your cashless transactions.  Check out these tips to make the most of these rewards.

  • How Gift Cards, Vouchers, and Rewards Can Be Used for Payments. If you’re looking for more ways to save money and maximize your budget, then you should definitely consider using gift cards, vouchers, and the like. What’s great about these is that they can also be used to supplement your cashless payment options. Check out these different ways on how to effectively use cash cards and vouchers for daily purchases and more.
  • Tips for Maximizing Rewards Points to Get More Rewards and Vouchers. Filipinos are all about diskarte when it comes to stretching their budget. Here are some good ways to apply that diskarte in getting more rewards points and maximizing them, with help from PayMaya.

QR Code Scanning

Quick response or QR codes might sound like a new thing, but they’ve actually been around since 1994. First developed and used in Japan by a manufacturing company, the QR code is now widespread across various industries. In banking and finance, this type of matrix barcode is often used in money transfers and as alternative payment solutions.

  • A Brief Overview of the Invention and Use of QR Codes. QR codes are amazing pieces of technology that’s now being used for a variety of applications, including financial solutions like PayMaya. Let’s take a quick look at how QR codes came to be. 
  • How Secure Are QR Codes for Payments? One of the biggest concerns about digital payment solutions like e-wallets is the security of a person’s financial information. Luckily, QR codes are difficult to tamper with and are therefore very safe so don’t hesitate to use QR scanning to pay for your purchases. For extra security, PayMaya has some tips.
  • 6 of the Most Useful Applications of QR Codes. QR codes are incredibly versatile. You can use them in practically any industry, including education, healthcare, and finance. The possibilities are endless! Check out this list for a quick look at how QR codes are used in day-to-day life.

Mobile Internet 

One of the key technologies that enable many forms of cashless, contactless transactions is the internet. Without it, a lot of apps and alternative payment methods won’t work properly. The problem is that by being on the internet, you may be exposing yourself to security threats. That’s why it’s important to learn how to use the internet the right way to protect yourself and your financial information.

Mobile Wallet (or E-Wallet) Apps

Millions of Filipinos are able to engage in cashless transactions thanks to mobile or e-wallets like PayMaya. From paying bills to shopping online, e-wallets make it a little easier for Pinoys to handle their financial responsibilities and even deal with emergencies. Apps like PayMaya can also help entrepreneurs and freelancers manage their income and grow their business. Here are just a few more examples that e-wallets can drive growth and change:

  • 6 Best Practices to Keep Your Mobile Wallet Safe and Secure. There are plenty of “horror stories” of people getting hacked or tricked into losing all their money in their mobile wallets. Don’t let these scare you into experiencing the convenience of cashless transactions, however. With these best practices, you can keep your mobile wallet protected.
  • 5 Ways Having a Mobile Wallet Can Help You in a Pinch. Mobile wallets are extremely useful, and not just for paying bills or transferring funds in a faster, more convenient way. They can also help you out in cases of emergency. Here are just some examples.
  • Why Do You Need an E-Wallet Payment Option on Your E-Commerce Site? If you’re an MSME owner, you need to consider offering an e-wallet payment option to your customers. This is particularly important for online-based businesses (but it’s also good for those with brick-and-mortar shops). Why? Here are a few reasons.
  • 5 Countries That Are Reaping Benefits of Mobile Wallets. Aside from the Philippines, there are also quite a lot of countries that have been enjoying the surge of popularity of e-wallets. Here’s a quick list—the second one might surprise you!
  • What Is a Mobile Wallet Why You Should Have One? As previously mentioned, cash is still king in the Philippines. Why, then, should you get a mobile wallet like PayMaya? Beyond experiencing cashless convenience, these reasons might just convince you.

Having Your Own E-Commerce Website

Among the many reasons that Filipinos use e-wallets like PayMaya is that these apps allow them to shop online, even without a credit card. COVID-19 has also urged more customers to opt for cashless transactions to ensure their health and safety. Simply put, if you have an e-commerce website, being able to provide cashless solutions will be good for business!

  • 4 of the Best Payment Options for Online Sellers.  Are you an online seller? Then you know that it’s important to provide multiple payment methods. This results in a seamless, hassle-free experience that will make your customers want to shop more, more, more. This article gives some of the best payment options you can offer.
  • Website or Online Marketplace: Which One Is the Best for You? If you’re planning on starting your own online selling business, you might be wondering what’s the better option: having your own website or using online marketplaces? There are pros and cons to each. To help you decide, PayMaya has compiled this list for you.

 

It may take a while before the Philippines becomes a largely cashless society. The good thing is that the foundations are already there. With continuous technological developments and expanding accessibility, the wait might not be too long.

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Topics:How-To