Digital cash is king

Cash, as in physical notes and coins, has apparently been dethroned. According to the 2024 Status of Digital Payments in the Philippines report released by the Banko Sentral ng Pilipinas (BSP), the share of online payments in monthly retail transactions has risen to 57.4 percent in terms of volume and 59 percent in value terms in 2024.

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The Manila Bulletin also quoted BSP officials as saying that the rise of digital cash “reflects the long-term impact of market developments, policy initiatives, and the growing trust and familiarity of Filipinos with digital payment options.”

The fact that we can pay using “digital wallets” installed on our phones is something that still blows my mind. I still remember when I was a kid helping out my mother sell shrimps and fish in Divisoria, one of my tasks was to run to other vendors whenever we need “panukli (change).” Sometimes we would run out of coins and a customer would pay us big bills so my mother would send me, “Boy, mamalit ka nga ng panukli (Boy, go get some change.)”

We have all gotten used to carrying around cash and paying for stuff with cold, physical cash. When the concept of paying using digital cash using a digital wallet was introduced, I was very skeptical, just like most of our kababayans, I suppose. How is that possible? How can he be paying me with something that I cannot see and touch? How secure is that QR code I am scanning? These were the questions we all asked.