Realizing the Potential of E-Commerce in Philippines
Philippines has always been ahead of the curve in ASEAN when it comes to embracing mass market technologies. First it started with SMS, and then came Facebook penetration, which is really high (50% +) in Philippines, as per recent studies.
What’s the future for Philippines?
Well, all indicators point out that Philippines is ripe for an e-commerce boom. E-Commerce is projected to grow at a 10 year CAGR of 34% with e-commerce accounting for 4.7 % of total retail in the country*. The Asia Pacific nation has witnessed a large number of merchants taking to e-commerce to sell their goods locally and globally without really pumping in capital. It is a classic case of e-commerce adoption by merchants.
The ingredients for a massive e-commerce boom are already in place in Philippines. It is not just SMS & Facebook penetration. Smartphone penetration in the country stands at 117%, which is among the highest in the world, according to IDC research. The rise of smartphones in the Pacific Island nation is a good ingredient for sustaining a strong and robust mobile commerce landscape. Mobiles will play a key role in e-commerce growth in Philippines, as not many can afford laptops.
As a testimony to the potential to mobile commerce, 60% of shoppers on Lazada, shop through the mobile^. Lazada is Philippine’s largest online marketplace. While releasing an e-commerce roadmap for the country, last year, Philippines’ Department of Trade and Industry has pointed out that the country’s 930k+ MSMEs are being urged to leverage e-commerce to tap the global marketplace and achieve business growth. The pacific island nation’s government has been pushing MSMEs to enter the global value chain & gain global market access via e-commerce.
This goes to show that Philippines is poised to make a huge mark in the global e-commerce landscape. As MSMEs from the country seek global market access through e-commerce, we at PayTabs are committed to Philippines by providing a truly global payments solution, which keeps international payment worries at bay for merchants in Philippines. Sign Up for a Free Demo to experience the true value of PayTabs.
*Data Source: Report by Google & Temasek
^Data Source: ASEAN 2017: Prosperity for All Summit