A recent report by ACI Worldwide and The Centre for Economics and Business Research reveals that real-time payments are set to drive significant economic and financial inclusion benefits in the Philippines.
These payments are projected to generate an additional $323 million in economic output, create approximately 29,238 jobs, and provide banking access to 21 million unbanked Filipinos by 2028.
Expanding financial inclusion
The study, released in October and titled Real-Time Payments: Economic Impact and Financial Inclusion, estimates a 23% increase in the banked population, translating to 21 million new account holders in the Philippines.
This surge in financial inclusion presents a lucrative opportunity for financial institutions. Based on an average customer lifetime value of $1,375, the potential profit by 2028 is $28.7 billion.
Digital payment momentum
According to ACI Worldwide, the Philippines’ digital payment landscape is at a crucial juncture, driven by rapid adoption and government-led initiatives.
The Bangko Sentral ng Pilipinas (BSP) noted in its 2023 Report on E-Payments Measurement that digital payment transactions accounted for 52.8% of total monthly retail payments in 2023, up from 42.1% in 2022. This translates to 2.62 billion monthly digital transactions, reflecting the increasing embrace of real-time payment systems.
Enabler of economic growth
Leslie Choo, ACI Worldwide’s senior vice president, emphasized the transformative potential of real-time payments.
“Real-time payments have proven to be a powerful enabler for societal transformation, bridging critical gaps in financial access and empowering millions of Filipinos,” Choo stated.
“They present significant growth and profit opportunities for banks that modernize and streamline payment technologies and services,” she added.
The benefits of real-time payments extend beyond the Philippines. The report estimates a global contribution of $285.8 billion to GDP growth and the creation of over 167 million new bank account holders by 2028.
Looking ahead
With the Philippines at the forefront of digital payment adoption in the region, the country stands poised to unlock immense economic and societal benefits. Real-time payments are a financial technology innovation and a crucial tool for bridging economic disparities, fostering inclusivity, and driving sustainable growth.
The challenge now lies in sustaining this momentum by fostering collaboration among financial institutions, technology providers, and regulators to maximize the transformative potential of real-time payments.