QR, e-wallets and cards: 3 cashless payment methods and which one is the best for your lifestyle?
With the world continuing with its digital transformation, the Philippines has emerged as one of the world’s most enthusiastic adopters of cashless payments. Today, a comfortable majority of Filipinos have used digital payments in the past 30 days, while the number of Filipinos using cashless payments daily is set to continually increase year after year.
As cashless payments continue to make significant inroads in our lives, a new challenge has emerged: which method should you use for your daily needs? Fortunately, this isn’t all that difficult to solve because of continuous payment innovations in the Philippine market.
For example, the Maya card is a premium debit card that functions just like you would expect. However, the Maya Savings account and app that are part of the card’s technology ecosystem also seamlessly facilitate QR and e-wallet payments.
Still, time is money. Even if acceptance itself is rarely an issue anymore in the Philippine payment scene, the efficiency of transactions still matters to many people, particularly those with busy lifestyles. Let’s break down the benefits of each of the major payment methods as well as the types of people they suit best:
1) QR code payments
QR codes allow you to make payments by scanning a barcode with your phone, often linked to an e-wallet or bank account. The rolling out of the Bangko Sentral ng Pilipinas (BSP) QR Ph standard has simplified these payments even more by allowing for wide cross-compatibility between platforms.
Benefits
Instant transactions. QR payments are quick since there is no need to fumble around with copying account numbers or account details. Thanks to the aforementioned QR Ph standard, there is also no longer any need to match providers, either. Once a code is scanned, the transaction is completed within moments and with full confidence, eliminating the need to carry cash or the exact card needed by a merchant.
- Wide accessibility. It’s also worth noting that QR payments are rapidly increasing, not just in mainstream places of businesses but even among microbusinesses, making QR payment a viable choice in day-to-day transactions. Even vendors without point-of-sale machines can accept payments with their phones or just a printed code.
- QR codes can be made dynamic (i.e. single-use) to reduce the chances of fraud during transactions.
Who it’s suited for
- Small business owners. QR payment is a cost-effective, convenient payment option that doesn’t require expensive equipment or special third-party services.
- Pop-up and local market shoppers. QR codes can be just the thing for people who often shop at local markets, pop-up stores, or food trucks, where QR codes are common.
2) E-wallets
E-wallets like Maya digitally store funds, allowing you to pay for a variety of items with just a few taps on your smartphone.
Benefits
- E-wallets make it easier to pay bills, transfer money, or shop online without needing to input your card or bank details every time.
- E-wallets are also widely accepted in the Philippine market, often serving as alternatives to conventional bank accounts for financially under-served Filipinos.
- Budgeting tools. Many e-wallet apps come with built-in features for tracking expenses and setting spending limits, simplifying everyday financial management for users.
Who it’s suited for
Online shoppers. People who want a solid online shopping solution can benefit from various e-wallets’ security features.
- Freelancers and remote workers. Those who work independently can easily send and receive cash payments without the need for potentially complicated bank transfers.
3) Debit and credit cards
Debit and credit cards are the most established and widely accepted cashless payment methods globally, both online and in physical stores.
Benefits
Global acceptance. Credit and debit cards from major providers like VISA and Mastercard are accepted virtually everywhere, both locally and internationally. A Maya card, for instance, will allow you to make cashless transactions at tens of millions of online and offline merchants’ stores worldwide.
- Rewards programs. Many cards offer cashback, travel miles, or other perks for using them, which can save money in the long term—provided the card aligns with the user’s lifestyle.
- Financial flexibility. Credit cards, in particular, offer valuable short-term borrowing capabilities for larger purchases. While debit cards can’t do that, they still have useful features such as automatic forex conversions that make them useful for online and overseas transactions.
Who it’s suited for
- Frequent travelers. Credit cards, especially those offering travel benefits, are ideal for people who travel frequently because of their worldwide acceptance.
- High-spending consumers. Those who spend a lot on big-ticket items can benefit from card rewards programs in some specific situations.
- Consumers with steady incomes. Credit cards are great for people who can manage their monthly payments effectively. Likewise, debit cards can offer the convenience and flexibility of credit cards with the major benefit of debt avoidance.
Which cashless payment methods give you maximum flexibility?
Most of us will tend to prefer one cashless method over others, but at the end of the day, it’s a good idea to examine the relative benefits of each method rather than just sticking to what we’re familiar with. You might just find that, rather than landing on just one method, a combination of methods suits you more. For instance, you might use QR payments for everyday transactions, e-wallets for personal cash transfers, and credit and debit cards for large purchases or travel.
While things may already seem quite seamless as they are, the future promises even more streamlined and secure ways to handle money. The next wave of innovations is doubtlessly going to provide even more convenience and security in your daily transactions, opening up exciting new frontiers for businesses and ordinary consumers alike.
