Metro Manila, Philippines — The Philippines’ mobile commerce (m-commerce) segment is expected to grow by approximately US$ 11.1 billion (₱632.9 billion), representing 25.9% or a little over a quarter of digital commerce, latest analysis from in-app and in-store financial solutions provider UnaCash revealed.
This represents a year-on-year growth of 20.4%, as the m-commerce segment — understood as online transactions carried out on wireless devices, such as smartphones, smartwatches or tablets — is expected to be at the level of US$9.2 billion by this year.
Demand for ‘Buy now, pay later’ (BNPL) options remains one of the segment’s key growth drivers, expected to be responsible for 30% or almost a third of m-commerce volume next year.
With more consumers using mobile devices for purchases, there is a demand for financial flexibility to mobile users preferring installment payments. This is particularly attractive to younger, tech-savvy Filipinos who favor financial flexibility.
Several factors also contribute to the growing volumes of m-commerce and BNPL. In 2023, the smartphone penetration rate reached 73.7% in the Philippines, 51.2% globally, and 62.1% in Southeast Asia. This concurrently led to the increased use of electronic-wallets, growing as the most popular choice for managing personal finances in the Philippines, and sustained use of e-commerce platforms.
“Mobile commerce is reshaping consumer expectations in the Philippines, with BNPL contributing to its impact,” Erwin Ocampo, head of product for UnaCash, states. “This growth signals a critical turning point for retailers, a move where adopting mobile-first strategies such as integrating BNPL options can not only capture the growing digital audience but also enhance customer satisfaction. This also includes driving repeat purchases and staying competitive in an increasingly mobile-driven economy. It’s clear that those who adapt to this shift will see long term gains in market share and customer loyalty.”
M-commerce’s projected volume also makes up 13.2% of the Philippines’ total retail market, which is forecasted to reach $83.7 billion (₱4.7 trillion) by 2025.
In 2023, the m-commerce segment accounted for US$7.8 billion (₱433.7 billion) or 24% of the total revenue of digital commerce. This represents an impressive 37.3% increase compared to 2022, with the segment growing at an average annual rate of 67.6%.
UnaCash estimates that there are about 87.4 million digital commerce users in the country, exceeding the population aged 15+ by 6%. The extended reach into younger audiences aged 15+ enables marketplaces to diversify and enhance their business models through mobile platforms.