The COVID-19 pandemic caught several—if not all—Filipinos off-guard. Whether it’s the imposed quarantine measures or new employment set-ups, Filipinos have had to adjust their lifestyles in many different ways.
One of the most affected facets is how Filipino consumers transact and conduct business with sellers, brands, and service providers. After all, despite the lockdown, life must still go on. People still need to pay their bills, shop groceries, and avail necessary services. As such, Filipinos have had to broaden their horizons and consider other channels in paying bills and withdrawing money.
With that said, here are three ways COVID-19 has changed the way consumers conduct different kinds of transactions:
Need for Online Banking
Before, online banking was simply for convenience. However, due to COVID-19, Filipinos have realized the increasing need for online banking. After all, you’ll have less exposure to the virus if you do all your banking transactions at home. From a national perspective, this can contribute to limiting the spread of the disease and lowering the number of cases.
Through online banking, you can conduct several kinds of transactions easily and safely. Some of these include:
- Paying utility bills online
- Sending money to stranded loved ones
- Checking if you’ve received your salary and other kinds of income
- Shopping for specific items online
- Monitoring your purchases
- Adding to your savings to grow your money
Since not all Filipinos have existing bank accounts, some banks made it possible to open a bank account online. Don’t forget to do your due research before filling out an application form. There are several types of bank accounts offered in different banks, so make sure to find one that fits your needs and limits.
Preference for Cashless Transactions
For the longest time, cash has been the primary method of payment for many Filipinos. In 2018, Bangko Sentral ng Pilipinas reported that cash still accounted for 99 percent of local transactions. However, recent reports reveal that this might be changing soon. According to VISA’s Consumer Payment Attitude Survey in 2019, 51 percent of Filipino responders have more than two virtual wallets in their phones and 48 percent utilize in-app payments frequently. Indeed, more and more Filipinos are embracing virtual payment methods each year.
The interest in cashless payment methods undoubtedly increased during the COVID-19 pandemic. This is due to three things:
- Online Shopping and Deliveries. Because people are advised to stay and work from home, they go to online marketplaces to buy necessities and other products. These sites and apps often have their own wallets that allow customers to pay with ease.
- Risk of Handling Cash. While there’s no evidence that the virus that causes COVID-19 can spread through money, a lot of consumers feel safer in using cashless payment methods. In this manner, they can more easily practice physical distancing and avoid handling items that other people have already touched.
- Convenience. Digital payments make it easier for consumers to transfer funds and pay for their purchases. Instead of going to an ATM or a bank to withdraw money, they can choose online payment instead.
Some of the most popular cashless payment methods in the Philippines include virtual wallets, payment cards (i.e., debit and credit cards), and online banking apps.
Increase in Independent Sellers
Several Filipinos lost their jobs due to the pandemic. To make ends meet, some decided to become independent sellers online. If you’ve been active in social media, you may have seen friends and relatives selling all sorts of products in social media, including food, apparel, and masks. Some may have also started offering freelance services such as graphic design.
This rise in online selling was made possible mainly by social media and the availability of online payments. Filipinos hold the top spot for most time spent online in the world. When you consider that, you realize that you have a virtually endless pool of customers online. Through social media, sellers can reach their target audience and market their products at almost no cost at all.
Meanwhile, independent sellers and freelancers can receive payment for their products and services through online banking or virtual wallets. It’s not uncommon for sellers to have at least one of each to offer more payment options for their customers.
It’s possible that some of these new sellers will stop once the situation improves. On the other hand, some of them may eventually turn into full-fledged businesses. The pandemic simply highlighted how technology has helped people find innovative ways to make ends meet during a crisis.
Needless to say, there are several other things that have changed due to COVID-19. Some have changed for the better, others for the worse. Until the world can function normally again, people will continue to learn and find ways to adapt.
