E-Commerce Boomers – Manila Standard Mobile
“What is your fintech experience during this pandemic? “
E-commerce is booming in the Philippines. Online transactions have become the lifeline of surviving the pandemic as they have become and are the safest and most convenient mode of purchase for consumers. Connecting to the internet via our mobile devices has become essential for the continuity of everything. Data from the Department of Trade and Industry (DTI) shows online retail businesses grew to 80.2% in 2021 due to massive changes not only in retail transactions but also in delivery services, online entertainment and telehealth consultations. The DTI predicts that by 2022 there will be one million registered e-commerce businesses and hopefully increase the country’s gross domestic product. In press reports last week, Filipinos were ranked among the Asia-Pacific region’s top “e-money adopters” in a study by global cybersecurity firm Kaspersky. The study indicates that the Philippines tops the list with 37%, followed by India (23%), Australia (15%), Vietnam (14%), Indonesia (13%) , Thailand (13%) and Singapore (11%). Come to think of it, these developments fit well with my own personal shopping and banking habits before and after the pandemic. Before the closings, my payments were usually made in cash, by check or by credit card. Although I did make a few purchases online before COVID-19, these were few and very careful transactions through e-commerce platforms – and not all of them went well. Financial institutions have also been reluctant to go digital. The pandemic has actually forced us to take the plunge and trust digital transactions simply because it’s the best way to securely get, and what we’ve all pleasantly discovered, to get what we have very easily. we need. Online shopping and online banking has actually gotten so much better and is especially preferred by people like me who have to be extra careful with co-morbidities. Although fully immunized, there must be a compelling reason to go to the mall or anywhere outside the house. In fact, it had been a long time since I had gone to an ATM to put money in my wallet. I even had to reset my password because I forgot it.
Philippine telecom operators are also seeing this increase in e-commerce users as more physical establishments now expand their online stores and millions of households whose livelihoods have been affected now sell all kinds of products. using online and online payment platforms. just to make ends meet. According to Globe Telecom Senior Vice President and Chief Sustainability Officer and Head of Corporate Communications, Ma. Yolanda Crisanto, at the recent Digital Readiness virtual forum hosted by Stratbase ADRi, there will be sustained growth in electronic payments through their GCash and other platforms. -forms like Internet penetration, now at 65%, the proliferation of digital applications adopted by consumers, and the digital transformation of MSMEs (Micro, Small and Medium Enterprises) to a more digital ecosystem is becoming a standard business strategy. The Kaspersky study also found that out of 1,618 Asian respondents, although 90% have used mobile payment apps at least once in the past 12 months, 70% still pay cash for their daily purchases while Mobile banking apps are catching up quickly at 52% and mobile payments at 58%, with respondents saying they use them at least once a week. In my experience, fintech (financial technology) transactions are already dominant over cash. Digital transactions work well, but there is still hesitation due to the risk of fraud and theft of sensitive personal information exposing its vulnerability to scams or other forms of cybercrime. This is a critical aspect of digital readiness that is often overlooked – we focus so much on achieving or successfully achieving the goal of our electronic transactions and forget about safe practices when paying online. The Kaspersky study actually reported 26% of respondents stating that fintech is “troublesome” because of their system’s passwords and security controls. On the flip side, 25% of people believe their digital devices may not be secure. Experts say, and I agree, that e-commerce and connected fintech platforms have definitely arrived and will see increasing use as more and more consumers are connected by more broadband services. extended and faster. The gains we have made in terms of Internet speed and reach so far have been driven by aggressive investments by private telecommunications operators in mobile and fiber-optic networks. As this administration has not done its part by investing in the urgent digital infrastructure programs of the National Broadband Plan, it will be up to the next government to develop this strategically critical pillar of the country’s digital transformation not only to maintain a ecosystem of economic recovery, but the most obvious of the raging controversies, a systemic transformation of the country’s governance system. In the recent statement from Stratbase ADRi President Professor Dindo Manhit on digital readiness, he said that “in a new digital ecosystem, we need leaders for digital transformation. Champions from the private and public sectors who can inspire innovations that would incorporate the disconnect between processes, policies and even the governance flaws that have been exposed.
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