Manila, Philippines – Around 51% of women-led SMEs and 56% of microbusinesses in the Philippines saw revenue growth after they started accepting digital payments, new data from Visa recently revealed.
Considering that SMEs are important to the economy and that women make up more than half of the population in Asia, utilising women’s economic potential might boost the Asia Pacific region’s GDP by $89 billion a year, including the Philippines.
According to the study, around 72% of the SMEs in the Philippines surveyed said that running their own business has gotten easier. Digital wallets—GCash in particular—dominate as the primary means of digital payment for SMEs, particularly those led by women (61%) according to a Philippine poll. Millions of unbanked Filipinos now have access to the advantages of having a payment card because of Visa’s partnership with GCash for the launch of the new GCash Card.
Out of all the companies that have begun to take digital payments, those that accept cards have seen the biggest gains in turnover (83%). Instantaneous transfers and cashless transactions are made possible by digital payments, improving the shopping experience. Visa helps small and medium-sized businesses (SMEs) in the Philippines by providing broad acceptance and strong security against fraud for both customers and merchants.
The Philippines has over a million micro, small, and medium-sized enterprises (MSMEs), making them important for the nation’s economic development. 99.5% of the businesses in the Philippines are MSMEs, according to data from the Department of Commerce and Industry. Almost 50% of these enterprises are involved in wholesale and retail commerce, which accounts for 65% of all jobs in the nation.
Guaya Melgar, CEO and co-founder of Mochi, said, “My business has grown since I introduced digital payment methods. I appreciate the convenience, speed, and the ability to easily track payment records. It provides my customers with a convenient cashless payment option too. I hope to expand my business beyond the Philippines so enabling cross-border payments will help me grow my customer base.”
Meanwhile, Jeff Navarro, Visa’s country manager for the Philippines, stated, “Small and medium-sized businesses are the driving force behind the thriving economy in the Philippines. Visa is proud to contribute to their growth by providing secure and convenient digital payment solutions. Visa is committed to continuously supporting the Philippine government’s financial inclusion and digitization goals, including empowering SMEs, the cornerstone of the economy, by introducing innovative financial and payment solutions so they can build on this foundation to grow their business.”
Recently, Visa released an online toolbox for SMEs to help travel-related businesses take full advantage of contactless payments. Visa launched the SME Accelerator Program in the Philippines in 2023 with the goal of assisting partners and SMEs with competitive pricing, expedited onboarding, and comprehensive go-to-market support. The enhanced SME Accelerator programs will also concentrate on a broader range of collaborations with ecosystem players to assist smaller vendors and expedite the implementation of solutions for SMEs.
To help women-owned and underrepresented SMEs in APEC countries like the Philippines gain faster access, the Visa Foundation has committed to donate $100 million over the course of five years. Approximately 29.6 million SMEs are from APEC economies, and 10.9 million of the nearly 67 million SMEs that Visa has addressed globally are led by women.
Source: https://marketech-apac.com/around-51-of-women-led-smes-in-ph-see-revenue-increase-when-accepting-digital-payments-report/