MORE consumers and businesses are engaging in digital transactions, but their growth rate is slow amid emerging risks, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said over the weekend.
“Maybe it will take a couple more years than we thought to get where we want to go,” Remolona told reporters, referring to the government‘s digitalization program across the financial system.
Under the Philippine Development Plan, the share of digital payments from retail transactions should reach 60 to 70 percent by 2028.
Data from the BSP’s 2023 Report on E-Payments Measurement showed digital payments accounted for 52.8 percent of total monthly retail transactions, up from 42.1 percent in 2022.
It was also higher than the BSP’s initial 50-percent target in 2022 in its Digital Payments Transformation Roadmap 2018-2023.
However, electronic payments have likewise heightened vulnerabilities in cybersecurity.
“We worry a lot about cyber risks,” Remolona said. “Even as we’ve encouraged digitalization, we’re also trying to get the banks to defend themselves against cyber risk.”
The country has one of the highest digital fraud rates globally, affecting 13.4 percent of transactions in 2024, with losses reaching P5.82 billion, slightly higher than the P5.67 billion in 2023. Social engineering — which covers phishing, smishing (SMS), and vishing (voice) — is the top threat, as well as hacking.
The BSP is also addressing concerns in global efforts to against money laundering and terrorist financing, as the country marks its first year of being stricken off from the grey list of the Financial Action Task Force (FATF).
The grey list identifies countries with deficiencies in their anti-money laundering and counter-terrorist financing regimes. The countries are subject to increased monitoring and are actively working with the FATF to resolve these issues within agreed timelines.
The Philippines exited the list in February 2025.
Authorities have been tracking money movements and enhancing enforcement. “We’re doing all we can [particularly in addressing money laundering concerns],“ Remolona said.
