The thriving digital economy in the Philippines and proliferation of new digital solutions, coupled with the government’s push to drive digital payments and financial inclusion, provides for tremendous opportunities to deepen financial inclusion in the country. The central bank, Bangko Sentral ng Pilipinas (BSP), expects at least 50 percent of payments to shift to digital by 2023. Furthermore, digital financial inclusion may also help formalize the vast informal economy. The report discusses why it is imperative to capitalize on this momentum to ensure wider adoption and usage of digital payments, particularly among low-income women, with a focus on digital wage payments for salaried workers.
Impact / Outcome
While both enterprises and workers recognize the benefits of digital wages, certain challenges remain. From the worker perspective, digital wage payments are instantaneous, safer than cash, and helpful in preventing overspending. However, there is still a heavy reliance and preference to withdraw wages in cash from an ATM to conduct daily transactions given the lack of infrastructure to support the widespread adoption of digital payments (e.g., the ability to use for merchant payments). Furthermore, issues with technology (e.g., ATM outage) foster distrust and reluctance in adoption of digital wage payments by workers.
Funding sources
Public
Key Metrics
Adoption of digital payments in the Philippines; Improve financial inclusion for women
Operating model
Fully publicYear published
23 March 2021 
Women's World Banking NGOs and other non-profit