- Despite the popularity of cash payments, there are more and more electronic payments in the Philippines.
- We’ll tell you about the 7 most popular e-wallets.
- E-wallets are safe, easy and help you pay your bills on time.
- You can also pay your Digido loan with e-wallets.
7 Best Mobile E-Wallets in the Philippines
The digital revolution in the form of fintech solutions has redefined the conventional notions of commerce and financial activities. The high octane campaigns of digital money and cashless economy, however, fail to get traction even among the highly techno-savvy population.
Like in most of the countries, cash transactions are the primary mode of transactions in the Philippines despite high levels of internet penetration and smartphone usage.
For many, the fear of fraud keeps them away from using digital financial solutions such as e-wallets or online banking for their financial activities.
As in many other areas, the pandemic has brought a paradigm shift in financial transactions as well. People worldwide are switching to digital payment solutions. And it makes the pandemic a blessing in disguise for the growth of the digital economy.
Normally documents such as ID cards, debit cards, driving licenses, health cards, or loyalty cards are the regular occupants of our wallets along with cash.
Suppose, if we lose the wallet, retrieving the documents is going to be a hectic affair than the financial loss. As an alternative, digital wallets are getting popular all over the world.
Digital wallets are a cloud-based software solution that keeps users’ documents in a digitalized form on a remote server. The user can access the documents through an application installed on his or her digital devices such as tablets, laptops, or smartphones.
Since the data is stored digitally, there is no need to worry about its up-keeping or loss of the documents by misplacing it.
How does a Mobile Wallet Work?
A mobile wallet, also known as an electronic wallet or e-wallet, is an electronic version of a payment card that can perform financial transactions for the user.
A mobile wallet can be configured by installing the preferred e-wallet apps on your smartphone or wearable gadget. After installation, the user has to preload the e-wallet account by linking his or her debit/credit cards or bank accounts with the wallet.
After that, the user can perform various financial transactions using the money available in the wallet. It relieves the user from carrying a puffy purse always and keeps it safe.
Advantages of e-Wallets
Some of the major advantages of e-Wallets are the following:
1. They are secure
E-wallets use advanced encryption methods to protect them from data tampering or leakage. As the device does not keep any sensitive data, the theft of the device does not pose any serious security threats.
It uses multi-layer authentication such as PIN, biometric evaluation, and NFC to ensure complete transaction security.
There is no need to hand over your e-wallet or device to the cashier at the billing desk, as in the case of credit card payment. It eliminates the possibility of credit card skimming or any such fraudulent activities as well.
2. They are easy to use
One can use e-wallets for online as well as offline payments. There is no need to carry money or worry about exact changes while taking a taxi.
E-wallets enable OFWs to transfer money to their families in a timely, secure, cheaper, and hassle-free way.
3. Good way to track expenses
The digital wallet documents all your transactions. It gives you a fair understanding of your spending and helps you manage your finances efficiently.
4. Ensures timely bill payment
Missing the deadline for recurring bills is not uncommon, but it can hurt your finances in the form of late fees or penalties. One can tackle this issue by configuring the e-wallet for auto payment.
5. Incentives or promotions
As a business strategy, e-Wallets offer promotions, rewards, and incentives to their users. You can use these money-saving offers in the form of discounts, cash-back, loyalty points, promo codes, and gifts for better utilization of your resources.
Disadvantages of Digital Wallets
Some of the significant disadvantages of mobile wallets are the following:
1. The security settings of the device are crucial for a secure environment for the e-wallet.
A poorly configured device that seldom follows the security recommendations will reduce the security of the e-wallet significantly.
2. The wide acceptability and effortless payment can tempt one to spend lavishly and topple his or her financial stability.
3. During payment, the transaction approval depends heavily on internet connectivity. Network outages or device compatibility issues can disrupt the approval process.
4. Each transaction can incur a transaction fee based on the vendor.
5. You can use an e-Wallet only if your mobile phone is up and working. If it is lost, damaged, or not in a working condition, you have to check for other alternatives.
7. The availability of e-Wallet enabled at shops is uneven across the Philippines.
The poor understanding of the Philippines economy and the financial preferences of the Filipinos was a reason for the lukewarm reception for e-wallets in the Philippines.
Top of e-Wallets in the Philippines
Thanks to the Philippines’ thriving fintech industry, we have a handful of e-Wallets that think like a Filipino and are world-class in their performances.
Some of the most common mobile wallets in the Philippines and their features are:
Traditionally, e-Wallets require a credit/debit card or bank account linked to the wallet. But a majority of the Filipinos are not part of formal banking. Coins.ph e-wallet enables them to cash in through their affiliated partners in an uncomplicated way.
The striking feature of Coins.ph is its ability to purchase, sell and convert your cryptocurrencies such as Bitcoin, Ethereum to PHP and vice versa.
The e-wallet enables gamers to secure game points and helps regular commutators to avoid long queues by recharging their beep card.
The major drawback of Coins.ph is its inability to carry out cryptocurrency transactions outside the Philippines. Besides, the exchange rate for the cryptocurrency is different from international rates.
Availability of prepaid cards and the scan-to-pay features are the most attractive elements of PayMaya e-wallets.
One can make the payment by simply scanning the QR-code displayed on the cash counter.
PayMaya offers a built-in virtual card powered by VISA or Mastercard. We can add funds to the card using different cash-in options and use it for online purchases.
One can opt for an EMV enabled physical card as well. These cards can be used for offline purchases and for ATM withdrawals on BancNet ATMs.
The lengthy KYC verification process and service charges for cashing in are some of the less welcoming features of PayMaya wallets.
Ensuring timely payment of your monthly contributions to SSS, PhilHealth & PAG-IBIG is a tedious task for many. In such cases, a mobile wallet like Moneygment is bliss for freelancers and entrepreneurs to track the payments and avoid penalties.
Moneygment has exceptional features for money management, bill payments, insurance, tax computation, loan application, and fund transfer.
The convenience charges on each transaction and delayed posting of contribution are some of the letdowns of Moneygment.
With more than 20 million subscribers and 63,000 merchant partners across the country, Gcash is the undisputed leader of digital wallets throughout the Philippines.
It enables the users to make international purchases by using GCash’s American Express Virtual Pay functionality.
People without bank accounts can cash in the wallet using over-the-counter payments at Gcash Partner outlets. The OFWs can top up the wallet by remittance through Gcash partners such as MoneyGram or Western Union.
One can use Gcash wallets for cash withdrawals from ATMs or through over the counter payment facilities. Efficient utilization of the Gcash wallet will earn you GSCore values. The GScore value can be converted to the GCredit, and that can be used as a credit card.
On the downside, most transactions or cashing in through non-partner facilities will invite service charges in GCash.
GrabPay wallet is quite handy if you are an avid user of Grab services such as Grab Car, Grab Food, Grab Taxi, etc. GrabRewards is an add-on benefit for using GrabPay. These points can give you ride discounts or various perks, such as 3 months of Spotify Premium for free.
GrabPay is not a general-purpose e-wallet with access across the country. Instead, its scope is restricted to Grab services only.
Dragonpay is an efficient way to make online purchases even without a bank account or debit or credit cards.
Its working is simple: during checkout, the user selects Dragonpay as a payment option. The system will give him or her cash remittance instructions based on the input data.
The user can make the payment at the designated location against the reference number given by the e-commerce portal. Once the bank updates the transaction, the purchase will get approved. However, the entire process can take a while and may not be suitable for real-time purchases such as a flash sale or flight ticket reservation.
For such purchases, Dragonpay credits are a great tool. Here the wallet is preloaded with money, and the user can use the wallet like a credit card for all types of online purchases or bill payments.
For some, the customer support needs some improvements.
PayPal is the globally accepted e-wallet with multi-currency transfer capability. It is the most suitable wallet for freelancers or e-commerce portals that works with foreign customers.
Using PayPal, one can send and receive money across the world or make purchases on another currency.
PayPal charges transaction fees for receiving the money to your account. It can take up to 5 banking days to complete the transaction from PayPal to your bank account.
How to Repay a Digido Loan with e-Wallets
Digido has the most expansive branch network across the Philippines. We are the pioneers in adopting novel solutions to improve the customer experience.
Our loan approval system is fully automated. It allows the applicant to secure a loan even on holidays or while traveling. These technological adaptations help people save their time, workdays, and money. Many customers comment that Digido customer service is one of the best in the Philippines. Polite staff are always listening and helpful.
A significant portion of Filipinos are still outside the formal banking network. It forces them to visit the branches to make the loan repayment by sacrificing the workdays. As a state-licensed, legit lender, Digido has incorporated e-wallets such as Gcash, Coins.ph, and Dragonpay for loan repayments. It helps the customer make timely repayments without any penalties. You can pay Digido via GCash easily and simply.
A customer can get the details of his or her loan repayment options from the personal cabinet on the website or by contacting the customer care hotline (02) 8876-84-84.
The Importance of e-Wallets for Filipinos
Cash transactions are the primary mode of transactions in the Philippines. This overdependence creates a cold shoulder approach for the companies to adopt innovative technologies to improve their customer experience.
Many Filipinos still prefer the Cash On Delivery option for online purchases. It limits the customer’s freedom of choice as international players might not offer such services.
With the advent of the digital economy, the world has converged to our smartphones. There is no reason for a vibrant economy like the Philippines to avoid exploring the possibilities of this digital economy for a better future.
LloydFast and reliable. Firt time user here and was pleased how fast they provide you assistance. After I got verified it took only a minute and I got my cash.5
RonnelWow. That was fast! Literally fast. Great app! 👌4
RenzThis app is so good, fast and reliable. Thank you Digido!4
JeffreyI had diffuculty at first since I register my smart number but I wanted the disbursement in my Gcash globe number. I was advised to re enter it. I did it and voala, it was transfered and I was so touched that they lend me money with zero interest!!!! It's only 7 days but nowadays, nobody will give you cash without something in return for them. Job well done, Digido!5
RonalynTheir service is superb! Thanks for the fastest and reliable service😍 Amazing app! Highly recommended! Thats all I can say🤩🤩🤩5