The new age of payment solutions in the Philippines

The digital payments revolution is in full effect in the Philippines, with data showing that cashless payments account for a majority of the country’s transactions. At the Fintech Revolution Summit in Manila, CoinGeek spoke to some companies powering this revolution about how they are changing Filipino lives.

Four-minute loans with EasyLodge

Access to credit is one of the key facets of financial inclusion and is the lifeblood of economic growth. A World Bank study found that every 10% increase in credit to the private sector boosts a country’s economy by up to 1.5%. However, it’s still notoriously difficult for SMEs to access loans.

EasyLodge is out to change this, Kosta Patsan tells CoinGeek. EasyLodge offers simplified lending that’s not only cheaper and more accessible but is also fast and efficient.

Its most transformative product is its four-minute loan. Typically, loans take over one week to be approved and several days to be disbursed. With EasyLodge, users fill out the application to apply for the loan remotely, and seconds later, the decision on whether they qualify is relayed.

“You get an instant decision. Generally, in most cases, you can fund within an hour, not three weeks,” stated EasyLodge managing director Kosta Patsan.

Credit access is especially critical for small and medium enterprises (SMEs). An OECD study found that half of all SMEs rely on credit to scale and create jobs; SMEs employ over 70% of the global workforce.

EasyLodge could make a bigger impact in the Philippines than in most other nations. According to the BSP, over 52% of Filipinos are banked, but credit access is still low. Only 13% of Filipino adults had borrowed from formal financial institutions in 2021, one study showed.

“The ability to give Filipinos an instant contract and access to credit in minutes, not weeks, surely that’s going to be great for the economy,” concluded Patsan.

Digital payments made easy with eMango

Digital payments have made massive strides in the Philippines as a key cog in the country’s digitalization journey. A recent Visa study found that 75% of all remittances to the country are now digital.

eMango is one of the fintech companies that is playing a role in this transformation. Speaking to CoinGeek’s Claire Celdran, Chief Accounting Officer Meij Quizon revealed that the company’s ascent was handed a big boost by the 2020 pandemic. Strict lockdowns to contain COVID-19 pushed people away from cash payments, and efficient digital payment platforms were the go-to alternative.

“That’s the time we realized the need for digital banking…that’s the time even the people in rural areas realized they needed mobile banking,” Quizon stated.

Digital payments in the Southeast Asian nation have kicked on four years after the pandemic. In the first quarter of last year, registered digital payment accounts hit 195 million, receiving $13.6 billion and sending $13.9 billion.

eMango was an instant hit, accruing 1,000 users on its first day. Since then, it has grown to 120,000 users, with 70% using it regularly. It has also expanded its suite of products to include bill payments and cash vouchers.

Despite the rapid growth in digital payments, Quizon believes the Philippines still has a long way to go before becoming fully digital. She noted that a vast population is still unaware of “how digital platforms actually work.”

“So, that’s where we come in and educate them,” she noted.

eMango is making a mark in a sector dominated by the two market leaders—Maya and GCash. The two have a combined 120 million users and have expanded beyond payments to offer other services, including digital asset access.

Watch: Achieving financial inclusivity in the Philippines