Philippines Sees Surge in QR Payments Amidst COD Persistence

Growing Trend of QR Payments

Recent statistics indicate a remarkable 198% increase in transactions using QR Ph and InstaPay between January 2025 and April 2026. This surge highlights a shift towards more immediate payment methods as Filipino consumers and merchants explore alternatives to traditional payment systems. Currently, QR transactions account for approximately 13% of the overall e-commerce payment volume in the Philippines.

Adoption of Digital Payments

The Ecommerce Payments Momentum Report 2026, created by Xendit and Cube, analyzed the payment preferences of around 6,000 shoppers, including 1,000 from the Philippines. Among its findings, e-wallet payments showed a modest growth of 3%, with GCash maintaining its position as the leading e-wallet in the country.

A survey of business leaders pointed to QR payments as the payment method experiencing the greatest demand growth at 32%. In comparison, e-wallets and bank transfers were cited by 20% of respondents, while buy now, pay later services garnered 16% and credit cards 12%.

According to Nazim Ali, president of Xendit, it's clear that Filipino consumers are open to adopting new technologies. However, they each have distinct payment preferences. To effectively cater to diverse customer needs, businesses must offer various secure payment options.

Challenges with Cash-on-Delivery

Despite the rapid adoption of QR payments, cash-on-delivery (COD) still holds a significant share, constituting about 23% of the e-commerce payment landscape in the Philippines. This figure is the largest among the six Southeast Asian markets assessed, with Vietnam trailing at 16%.

The report anticipates that by 2027, the Philippines will remain unique among those surveyed, still seeing COD represent over 20% of e-commerce transactions. While 33% of Filipino respondents indicated they were using COD less frequently than a year prior, 12% stated that nothing could convince them to shift to digital payments. This highlights the enduring popularity of COD among consumers.

Payment Preferences Impact Sales Completion

The preferred payment method significantly influences the likelihood of completing an online purchase. An alarming 41% of Filipino respondents cited the unavailability of their preferred payment option as the main reason for abandoning a recent online purchase. Indonesia reported an even higher rate of 51%.

To mitigate purchase abandonment, it is essential for businesses to provide a variety of payment methods. Nevertheless, this wider variety requires robust systems that can securely process transactions and safeguard customer information. A staggering 92% of business leaders recognize the critical role of diverse payment options in driving growth. However, only 12% considered their payment infrastructures fully equipped for forthcoming challenges.

Concerns Over Payment Security

As digital transactions grow, so do the concerns surrounding payment security. While only 8% of business leaders identified fraud as a major concern today, 48% predicted it would escalate over the next five years. This anticipated rise could hinder legitimate transactions, making it crucial for businesses to strike a balance between fraud prevention and the smooth processing of genuine sales.

The report underscores the ongoing digital evolution in Southeast Asia's payment systems while revealing the complexities surrounding consumer preferences that vary from market to market. E-commerce businesses in the Philippines are thus faced with the dual challenge of promoting digital payment adoption along with maintaining options for customers who still prefer cash-on-delivery.