Digital payments are rapidly transforming the Philippine e-commerce landscape, with transactions through QR Ph and InstaPay surging 198% on Xendit’s platform from January 2025 to April 2026.
Despite this remarkable growth, cash-on-delivery (COD) remains a strong consumer preference, highlighting the challenge of moving Filipino shoppers toward fully digital transactions.
The findings, detailed in the Xendit Ecommerce Payments Momentum Report 2026, reveal how payment preferences, checkout experiences, and security concerns are shaping online shopping in the country.
Based on a survey of 1,000 Filipino online shoppers, part of a 6,000-respondent study across six Southeast Asian markets, and Xendit’s transaction data, the report spotlights the importance of offering convenient and secure payment options.
QR Ph and InstaPay Payments Nearly Triple
Payments through QR Ph and InstaPay have emerged as some of the fastest-growing digital payment methods in the Philippines.
According to Xendit, transactions through these real-time payment channels increased by 198% over 15 months, accounting for approximately 13% of e-commerce value on its platform.
The growth reflects increasing consumer acceptance of convenient, cashless transactions supported by the country’s digital payment infrastructure.
QR Ph enables interoperable QR-code merchant payments, while InstaPay facilitates near-real-time electronic fund transfers between participating financial institutions.
However, the rapid expansion of these payment methods does not mean Filipinos have abandoned their existing preferences.
The country remains a wallet-first market, with GCash continuing to play a significant role. E-wallet payments on Xendit’s platform grew by only 3% during the same period, suggesting that QR-based payments and bank transfers are gaining momentum from a smaller base.
Digital Payments Grow as E-Wallet Usage Slows
The increasing popularity of QR Ph and InstaPay indicates a call for more diverse digital payment options. As consumers become accustomed to online shopping, businesses must recognize that different customers prefer different ways to complete their purchases.
Xendit President Nazim Ali emphasized that merchants need to adapt to these varying preferences rather than rely on a single payment method.
“Filipino consumers have always been receptive to new technology and we see the same in digital payment, but they don’t all pay the same way. One wants an e-wallet, another scans a QR Ph code, another uses a card,” Ali said.
“So for a business, going digital isn’t about choosing one main payment method and steering everyone onto it. It’s knowing which methods your digitally savvy customers actually use, offering those, and making sure each one is secure. If people can’t find the option they use, or don’t trust the checkout, they leave.”
The trend also extends across Southeast Asia. In a separate survey of 25 business leaders, QR payments were most frequently identified as the payment method experiencing the strongest increase in customer demand, cited by 32% of respondents. E-wallets and bank transfers followed at 20% each.
Cash-on-Delivery Remains Popular in the Philippines
Despite the expansion of digital payments, cash-on-delivery (COD) remains deeply embedded in the Philippine online shopping.
Xendit’s data shows that COD accounts for approximately 23% of e-commerce value in the country, the highest proportion among the six Southeast Asian markets covered by the report.
Vietnam follows with 16%, placing the Philippines well ahead of its regional counterpart. The report also expects the Philippines to remain the only market in the study where COD accounts for more than one-fifth of e-commerce value in 2027.
Nevertheless, consumer behavior is gradually changing. Around 33% of Filipino respondents said they used COD much less frequently than they did a year earlier.
However, 12% said nothing would persuade them to switch to digital payments, approximately twice the proportion reported in most other markets.
For consumers willing to change, discounts and cashback incentives represent the most common motivation. These findings suggest that merchants may need to combine attractive promotions with reliable service and convenient digital payment options to encourage wider adoption.
Missing Payment Options Drive Online Checkout Abandonment
Offering products that attract customers is only part of succeeding in e-commerce. Merchants must also ensure that shoppers can pay using their preferred methods, or risk losing sales at the final stage of a transaction.
The report found that 41% of Filipino respondents who abandoned an online purchase in the preceding three months identified the absence of their preferred payment method as the main reason.
This makes payment availability a major concern for businesses seeking to improve checkout completion rates.
Similar challenges were observed elsewhere in the region. Missing payment options were the leading reason for checkout abandonment in Indonesia, cited by 51% of respondents, and Malaysia, at 31%. In Vietnam and Thailand, security concerns were the leading reason instead.
For Philippine merchants, the findings implicate the need for payment choices and making the checkout process straightforward.
Supporting e-wallets, QR payments, bank transfers, and cards can help businesses serve customers with different financial habits and reduce preventable lost sales.
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