Demand Study of Domestic Payments in the Philippines
This report studies the effective demand for domestic payments services in the Philippines. It estimates the national market and unmet demand for money transfers and remote bills, and quantifies consumer preferences and price sensitivity for different payment service providers.
The paper is based on focus group discussions, intercept surveys and nation wide adult surveys of users of remote domestic payments. It presents findings on user profile, knowledge and usage of payment services, types of payments and transactions, customer attrition and sustainability of mobile money agents. Conclusions include:
- Domestic payment market is active and maturing;
- Knowledge and usage of mobile banking is low;
- Personal direct payers represent potential demand;
- Users of informal service providers may be a key niche market.
The report states that in the future, demand side data needs to be matched with supply side research. Recommendations from clients for improving payment services include faster service, lower fees and charges, more number of branches, extended business hours and improved customer service and incentives.
