by Julien Chien
Chief Operating Officer of Mocasa
In today’s digital age, cashless transactions have undeniably become a transformative force in the global economy. At the forefront of this revolution stands the humble QR code, a versatile and powerful tool that has played an essential role in enabling the shift towards a cashless society.
In the Philippines, the Bangko Sentral ng Pilipinas (BSP) is mandating the full adoption of the Philippine QR Code (QR Ph) with the aim to accelerate digitalization. It is based on the Europay-Mastercard-VISA (EMV) standard, a global standard for secure payments. With this mandate, BSP-supervised financial institutions (BSFIs) and payment service providers (PSP) are now required to fully adopt QR Ph effective July 1, 2023. Currently, there are more than one million QR Ph-enabled merchants, and this number is expected to grow in the coming months.
But from a consumer’s perspective, what does this actually mean? Won’t we be able to pay using traditional cash notes in the near future? Let’s explore the importance of QR codes in realizing a cashless society and some of the benefits they offer:
Easy, convenient, contactless payments: QR codes aim to make payment process easier by eliminating the need for physical cash or credit cards. Consumers can simply scan a QR code with their smartphone and complete a transaction within seconds. This convenience saves time and reduces the hassle of fumbling through bags or wallets for cash or cards. In addition, QR codes enable contactless payments, which have been accelerated by the COVID-19 pandemic. Consumers can make payments without the need for physical contact with payment terminals or exchanging cash.
Wide acceptance, versatility: QR codes are widely accepted and implemented across various industries. In the Philippines, aside from retail outlets and restaurants, BSP and local government units have also recently implemented QR Ph payments in public markets and local transportation services like tricycles. This initiative aims to build a stronger digital payments ecosystem by further promoting cashless payments at grassroots levels.
Enhanced security: QR codes enhance security in payment transactions. They can include encrypted payment information, preventing sensitive data from being exposed during the payment process. Additionally, with QR codes, consumers have better control over the transaction as they can review the payment details before scanning the code.
Seamless integration with mobile devices: QR codes are designed to be scanned using smartphone cameras or dedicated QR code scanning apps. Since most consumers have smartphones readily available, they can easily scan QR codes without requiring any additional hardware or specialized devices.
As the Philippines’ first credit payment service app, Mocasa strongly supports BSP’s vision to create a more financially inclusive and cashless nation, along with our goal to encourage Filipinos to apply for and adopt credit payments.
To note, the Philippines’ current credit card penetration stands at 3% as of 2022. Prolonging this situation are the lack of a solid cashless payment infrastructure as well as insufficient credit data. But with BSP’s drive to promote digitalization and our QR Ph-enabled technology, users can conveniently and securely pay through credit for goods and services at almost any physical store or merchant nationwide in the near future.
Overall, QR Ph is a significant step towards achieving a cashless society, and the availability of credit payments has accelerated its adoption. This empowering combination of QR Ph and credit payments provides consumers with more options for their payment methods. By utilizing credit, individuals can enjoy enhanced financial flexibility, enabling them to access a wider range of goods and services. It also encourages responsible financial behavior and the establishment of a positive credit history, opening doors to additional financing and investment opportunities. With the integration of credit payments into QR Ph, we aim to promote financial inclusion and empower individuals to make secure and convenient transactions while fostering a cashless economy.
