Visa said it is working with Philippine banks and other financial sector stakeholders to encourage the adoption of mobile payment providers such as Google Pay, Apple Pay and Samsung Pay.
The global digital payments company in a recent regional workshop collaborated with regional partners, including Google Southeast Asia, Vietcombank and Starbucks Vietnam to share insights and best practices on how local banks can effectively integrate, launch and expand mobile payment services in the Philippines.
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Mobile payment providers, also referred to as “xPays” in the industry, are classified as technology service providers and do not need prior registration to operate as payment system operators (OPS). This means these services cannot hold funds for Filipino consumers and must be linked to a user’s credit, debit or e-money accounts.
Once a Visa card is added to a digital wallet like Google Pay, it can be used for tap-and-pay transactions in stores, online, or in apps without needing the physical card. The transactions are protected by Visa’s security technology, it said.
Visa noted that in Southeast Asia, tokenization is used through these mobile payment providers in markets like Vietnam, Singapore, Malaysia and Thailand to create a secure payments experience. Tokenization replaces the actual card number with a unique digital token when a Visa card is added to a digital wallet.
This token is stored on the device and used with a dynamic cryptogram to authorize each payment. This process ensures the cardholder’s real account information is never shared with merchants, which significantly reduces the risk of fraud.
As of 2024, Visa has issued over 10 billion tokens, with more than 1.5 million e-commerce merchants transacting with Visa tokens daily. Visa’s Token Service (VTS) contributed a $2-billion uplift for merchants in Asia Pacific in 2023, while payment fraud rates were cut by more than half, or 58 percent, it said.
“Vietcombank has been a trusted partner of Visa in delivering seamless payment experiences to Vietnamese consumers. We’re proud to share our key learnings with peers across the region,” said Nguyen Hong Thanh, deputy director of retail product department from Vietcombank, Vietnam’s largest commercial bank. Google Pay and Samsung Pay have been available in Vietnam since 2022, and Apple Pay went live in 2023.
Jeffrey Navarro, Visa country manager for the Philippines, said digital wallets amplify the power of Visa by providing secure, seamless and innovative payment experiences.
“Each tap is protected by Visa’s network token technology, ensuring trust and security while advancing the Philippines’ digital payments landscape,” he said.
“As a trusted global partner, Visa is proud to support the country’s financial inclusion goals by connecting local innovations to our global network—helping Filipinos pay and be paid with confidence and driving inclusive growth across communities,” said Navarro.
The adoption of these digital wallets in the Philippines is expected to expand financial inclusion for both Filipinos and foreign travelers. Across the Asia Pacific region, 97 percent of travelers say they bring credit, debit, or prepaid cards on trips, while only 17 percent intend to bring foreign currency. In the Philippines, 44 percent of travelers report encountering payment problems, including non-acceptance by merchants.
According to the latest data from the Bangko Sentral ng Pilipinas (BSP), digital retail payments now account for 57.4 percent of total transaction volume in the country, exceeding the 2024 target under the Philippine Development Plan and on track to meet the 70 percent target by 2028.
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