The Philippines: Driving Digital Payment Adoption Across NCR

Five local government units in Metro Manila have officially embraced the national digital payment initiative spearheaded by the Marcos administration, aiming to make everyday transactions in markets, stores and public transportation increasingly cashless and secure, a Palace official announced.

The programme, called Paleng-QR PH, was launched through a partnership between the Department of the Interior and Local Government (DILG) and the Bangko Sentral ng Pilipinas (BSP). It enables consumers to use QR code technology to pay for goods and services at traditional local markets, small neighbourhood stores known as sari-sari stores and public transport vehicles, including tricycles.

“You can now use the QR PH app to pay at select markets like sari-sari stores and public transport such as tricycles,” Presidential Communications Office Undersecretary Claire Castro said during a press briefing.

Among the Metro Manila cities participating in the programme are Parañaque, Pasig and Quezon City. The programme covers various sectors, including public markets, tricycle operations and other small to medium-sized businesses that form the backbone of daily commerce for many Filipinos, Castro added.

The DILG highlighted that the Paleng-QR PH initiative seeks to accelerate the digitalisation of transactions at the grassroots level. By promoting cashless payments, the government aims to enhance financial inclusion, particularly for small business owners and ordinary citizens who traditionally rely heavily on cash.

Moreover, reducing the use of physical cash can help prevent scams and fraud, as well as promote safer and more secure digital payment environments for consumers, business owners, transport operators and vendors alike.

This initiative also addresses the challenge faced by many traditional Filipino businesses that have long operated on cash-only systems. Bringing digital payment technology to these sectors is a crucial step in modernising the economy and aligning it with global trends.

The programme is also expected to increase transparency in transactions and improve government revenue collection by reducing unreported sales, which is vital for sustaining public services and infrastructure projects.

“The DILG provides technical assistance to local governments that want to join the programme to promote a cashless payment system in the country,” Castro explained. “This effort supports President Marcos Jr.’s goal of making payments safer, faster and more convenient for every Filipino.”

Government officials are encouraging more local government units across the country to participate in the programme. Expanding the use of digital payments is part of the Marcos administration’s broader push toward digital transformation and financial inclusion, which particularly targets small-scale entrepreneurs and transport operators serving the daily needs of millions of Filipinos.

President Ferdinand R. Marcos Jr. underscored the importance of adopting digital payment systems during his 2024 State of the Nation Address. He noted the significant impact of these technologies across various sectors of the economy.

“More and more systems are now digital and cashless, assimilating individuals, MSMEs and even agricultural workers,” President Marcos said. “These have expedited transactions and commercial exchanges and promoted convenience for all parties concerned.”

The president specifically highlighted the growing popularity of the Paleng-QR programme, stating in Filipino, “Paleng-QR is one of the programmes that is gradually gaining stronger public appeal and increasing users.”

While Parañaque, Pasig and Quezon City are confirmed participants, officials are expected to announce the other two Metro Manila cities soon, an encouraging sign of the growing enthusiasm and strong support among local governments for advancing digital payment adoption through the Paleng-QR initiative.

As the programme gains momentum, it is expected to significantly contribute to modernising financial transactions and fostering a safer, more inclusive economy. By leveraging digital payment platforms, the government hopes to better serve Filipino consumers and small business owners alike, paving the way for a more digitally connected and financially empowered society.