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May 27, 2024

Philippine fintech industry poised for hyper growth

The Indonesian fintech and payment gateway Xendit said the tech-driven domestic financial sector is entering a period of hypergrowth as its regulator, the Bangko Sentral ng Pilipinas, is increasingly more aware and open to innovation.

Xendit has distinguished itself as one of the so-called unicorns in Southeast Asia, or one whose operations is worth at least $1 billion, and the first payment platform in the country to accept the top three e-money issuers PayMaya, GrabPay and GCash.

This period of hypergrowth is a welcome development as the BSP has acknowledged that over-the-counter (OTC) payments are still a widely popular mode of payment in the country and the opposite of its campaign to shift such transactions into the digital sphere.

Proponents of the full digitalization of transactions in the country said the continued prevalence of OTC transactions present a barrier to the ideally uninterrupted operations of the financial industry that understandably cannot operate 24/7 and more susceptible to fraud.

“As a result, integrating new payment channels is slow and difficult to support and scale,” Yang Yang Zhang, Xendit country head and managing director, said in a recent webinar.

“To solve these problems, Xendit provides businesses of all sizes a strong online presence by serving as an innovative online payment gateway that allows them to meet their customer’s needs and even scale their operations.

“This allows for unlimited transfers to any bank in the Philippines via API, even letting businesses integrate and charge across multiple banks around the world within hours,” the official added.