E-Commerce Growth and Digital Payments in the Philippines

Abstract

Purpose: To aim of the study was to analyze the e-commerce growth and digital payments in the Philippines. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The growth of e-commerce and digital payments in the Philippines has been significantly influenced by factors such as perceived security, ease of use, and government policies. Studies show that digital payments have increased consumer spending and boosted sales for SMEs, especially during the COVID-19 pandemic. However, barriers like financial literacy and trust issues still hinder widespread adoption, particularly among low-income groups. Government initiatives and improved digital infrastructure have played crucial roles in promoting e-commerce growth. Unique Contribution to Theory, Practice and Policy: Technology acceptance model (TAM), diffusion of innovations theory & unified theory of acceptance and use of technology (UTAUT) may be used to anchor future studies on e-commerce growth and digital payments in the Philippines. Digital payment providers should invest in comprehensive educational campaigns to improve financial literacy and build consumer trust. Policymakers should prioritize the development of digital infrastructure, particularly in rural and underserved areas, to ensure equitable access to e-commerce and digital payment systems.