IN the busy streets of Metro Manila, the familiar sound of coins dropping into cash boxes is slowly being replaced by the soft notification chime of digital payments. Across cafés in Quezon City, food stalls in Manila, clothing shops in Makati and small convenience stores in Pasig, QR codes have become symbols of how businesses in the National Capital Region are changing. What was once a cash-heavy environment is steadily shifting toward a digital-first economy driven by financial technology (fintech) platforms such as GCash, Maya and PayMongo.
For decades, small and medium enterprises (SMEs) in the Philippines relied heavily on cash because it was simple and widely accepted. This began to change as financial technology reshaped how entrepreneurs process payments and manage operations. The shift accelerated during the Covid-19 pandemic, when physical transactions were limited and both businesses and consumers turned to contactless systems. Since then, QR-based payments have become a regular part of everyday business in the NCR.
Today, QR codes are widely used across the National Capital Region. Customers can scan a code to pay for food, coffee or groceries within seconds, making transactions faster and more convenient. This reflects the growing preference for digital payments in daily urban life.
A key factor behind this change is the accessibility of fintech services. Unlike traditional banks that require paperwork and physical visits, fintech platforms allow SMEs to sign up quickly and start accepting payments using only a mobile phone. This has made digital adoption more practical for micro and small businesses across NCR.
The Philippines remains in a transition phase rather than fully cashless, as cash still accounts for about 42 percent of point-of-sale transactions. According to the Bangko Sentral ng Pilipinas (BSP), digital payments accounted for 57.4 percent of retail transaction volume and 59 percent of transaction value in 2024. Merchant payments made up 66.4 percent of digital transactions, showing the strong role of SMEs in driving adoption. QR Ph merchant usage also grew by 148.7 percent in 2024, reflecting the rapid expansion of digital payment systems nationwide.
Beyond convenience, fintech has created new financial opportunities for SMEs. Digital transaction records allow small businesses to build financial histories that improve their access to loans and credit. In the past, many entrepreneurs struggled to secure financing due to a lack of documentation. Now, automated transaction records support greater financial inclusion and business growth.
Consumer behavior in NCR has also shifted. Customers increasingly prefer businesses that accept digital payments because of speed and convenience. In commercial areas across Metro Manila, shops without QR payment options risk losing customers, especially among younger consumers, who already rely on e-wallets for shopping, transport and bill payments.
Fintech companies are also expanding services beyond QR payments. Features such as Tap to Pay, digital invoicing and business management tools help SMEs streamline both physical and online operations. This supports the growing trend of hybrid business models that combine in-store and online selling.
Despite rapid growth, challenges remain. Unstable internet connectivity, cybersecurity risks and limited digital literacy continue to slow adoption. Many small vendors and market sellers still hesitate due to unfamiliarity with digital systems. To address this, the BSP promotes financial inclusion through its Cash Lite Pilipinas initiative while the Department of Trade and Industry supports SMEs through its Digital MSME Program. Fintech companies like GCash and Maya also provide onboarding sessions and training workshops to help businesses adapt.
In many ways, the NCR has become the center of this fintech shift. As the country’s main economic hub, Metro Manila reflects how technology is reshaping business practices. Digital payments are no longer optional but increasingly necessary for SMEs to stay competitive in a modern economy.
From traditional sari-sari stores to emerging online enterprises, the shift from cash to QR highlights the adaptability of Filipino entrepreneurs. As fintech continues to grow, SMEs across NCR demonstrate that even small businesses can thrive in a digital economy — one scan at a time.
Albertus Anderson Arriesgado is a business consultant at First Circle.
