Despite issues encountered, consumers’ behaviors toward e-wallets remain positive among survey respondents. Filipino consumer display remarkable preference for e-wallets, undeterred by the issues encountered in the ever-evolving digital payment landscape. E-wallets have successfully integrated themselves into Filipino society, and their future appears robust, appealing to a diverse range of age groups. As e-wallet providers continue to innovate and address concerns, it is probable
that Filipino consumers’ reliance on these digital platforms will remain unfazed.
According to NRI Singapore-Manila Branch, of the 477 e-wallet users in Metro Manila who answered the survey, 195 or 41% have encountered issues in the last six (6) months. Most of the issues encountered relate to the technical challenges with 53% of respondents noting that they have experienced multiple and unplanned downtimes, while 44% and 38% of the respondents expressed difficulty in receiving one-time passwords (OTP) and in opening the app, respectively. A few of the respondents have also experienced integration challenges, such as delays in cash in or cash out with 34% and 15%, respectively, as well as security concerns like spam at 31%, unauthorized transactions at 13%, and loss/theft of money at 16%. Despite these challenges, all survey respondents have expressed their intention to continue using e-wallet in the next six (6) months.
We hypothesize that this behavior is largely driven out of necessity and convenience. The use of e-wallet has already become integral to consumers’ lives, motivated by wider adoption of e-commerce and digital financial platforms in the Philippines.
This behavior can be explained and demonstrated by the survey results as discussed in the following:
(1) Filipinos have embraced e-wallets for low-value everyday transactions, including sending money to family and friends, sending money to merchants for online purchases, and as an alternative to carrying cash for everyday purchases.
Sending money to family and friends is the foremost reason for using e-wallets, with 87% of the respondents. Sending money to merchants for online purchases closely follows at 83%, demonstrating the integral role e-wallets play in empowering e-commerce. Additionally, using e-wallets as an alternative to carrying cash for everyday purchases, with 61% of respondents holding this view. It’s worth noting that the percentages are almost the same even among those who have encountered issues.
The value of e-wallet transactions, however, remains low with usual exchanges averaging between PHP 1,000 to PHP 5,000 according to the survey results. This may be due to the transaction limits imposed by e-wallet operators or other preferences for platform by users for large-value transactions. Simultaneously, as transactions and consequently, the value of money stored in e-wallet are small, the financial impact of issues encountered may be immaterial. Further survey and analysis are needed to validate this hypothesis.
(2) Filipino e-wallet users are looking for more convenience, accessibility, and incentives.
E-wallets appeal as a hassle-free alternative to traditional payment methods. As many Filipinos have now experienced transacting online, it is not surprising to find that the majority of respondents*, whether they have encountered issues or not, cited the convenience of e-wallets over traditional means such as physical cash or cards.
Similarly, both groups display a preference for accessible cash in through platforms, with 59% of respondents and 63% of the sub-population** valuing this feature. The slight increase among the sub-population suggests that, even with the issues encountered, the ease of cashing in money remains crucial. The appeal of discounts at 43%, although slightly higher at 48% for those with issues encountered, maintains its significance for both groups, emphasizing that cost-saving continues to drive e-wallet adoption.
* 70% of survey respondents found that use of e-wallet have become more convenient than traditional means (physical cash or card). The same sentiment is observed for the sub-population of users who encountered issues using e-wallet, with 75% of them emphasizing the e wallets have become more convenient than traditional payment method.
** Sub-population refers to the respondents who have encountered issue while using e-wallet in the last six (6) months.
(3) High trust for e-wallet as digital financial platform
While 71% of the sub-population admitted that the issues, they have encountered affected their perception on e-wallet, 97% has still expressed absolute trust on e-wallet as a digital financial platform. Even the group that has encountered issues with potential financial impact (e.g., loss/theft of money, identity theft, spam, unauthorized debits, delays in cash in and cash out) remain positive on the use of e-wallet, with 95% still maintaining trust on e-wallet platforms. Related to reason (1), users’ perception and trust for e-wallet are still bright as impact of issues are immaterial.
While security-related concerns rank at the bottom of issues encountered, it remains the key concern for the few respondents who spent less time using e-wallet in the last six (6) months (43% of the 4% of respondents mentioned security issues as concern for the decline in the frequency of use of e-wallet).
Respondents feel insufficient support from the government for users of e-wallet
57% of the respondents shared that they feel insufficient support from the government. Highlighted reason for this sentiment is due to the difficulty in filing complaints against e-wallet operators and fraudulent activities with 71% of the respondents and 75% of those with issues encountered, respectively. Similarly, 67% in both groups feel that the government do not possess advanced tools for tracing online criminals and perpetrators of cyberattacks. Lastly, 60% of respondents from both groups share that there are no penalties on e-wallet operators in cases of money loss, theft, and fraudulent activities. This uniformity underscores the
tacit need for protection that Filipino consumers demand from the government in safeguarding their interests in the digital financial landscape.
As such, this may explain why majority of users are looking for better protection from e-wallet platforms based on the preferred features that they have indicated in the survey and more support from the government and are still wary about their security while using e-wallet platforms.
Impact to operators
Robust protection against financial loss or theft and stringent security measures remains paramount for meeting users’ needs.
The preferred features among both the total respondents and the sub-population were consistent. Notably, a strong preference for insurance against loss/theft of money is shared by 68% of the respondents moreso by those with issues encountered. Enhanced security policies and features follow closely (55%) underscoring crucial importance of financial security.
Key Findings
Despite encountering various security issues with e-wallets in the past six (6) months, Filipino consumers maintain their trust and positive behavior toward these digital platforms, reflecting the integral role of e-wallets play in their lives. These challenges, encompassing multiple downtimes, issues with receiving one-time passwords (OTP), and integration challenges, have not deterred consumers from relying on e-wallets for their everyday financial needs. Notably, e-wallets have become indispensable for everyday transactions, including sending money to family and friends, making online purchases, and as a convenient alternative to carrying cash. It is clear that the appeal of these digital platforms far outweighs the occasional inconveniences experienced by users. Furthermore, consumers are expressing the growing preference for stronger security measures from e-wallet platforms, indicating an anticipation for more robust financial loss protection.
