Online payment methods in the Philippines

With roughly $78bn moving through online channels in the Philippines, digital payments are now a core part of daily business¹. From local e-wallets like GCash and PayMaya to card payments and buy now, pay later services, Filipino consumers now expect to have multiple options when they check out at online stores.

Understanding these payment types is vital for businesses, as getting the right mix can attract new customers and drive growth.

In this guide, we’ll look at the most popular online payment methods in the Philippines, the fees involved, and what you should consider when deciding which options to accept.

What are online payment methods?

Online payment methods are ways of sending or receiving electronically through the internet, on websites and mobile apps. Instead of using physical cash, customers pay online using credit cards, bank transfers, and other alternative methods.

According to the Bangko Sentral ng Pilipinas (BSP), digital payments made up 42.1% of all retail transactions in 2022 – a big jump from the year before¹. For MSMEs, this shift to mobile wallets and online checkouts demonstrates that offering accessible ways to pay can meet rising customer expectations, reach more buyers, and ultimately bring in more sales.

There are other upsides, too: Businesses reduce their cash handling, can automate record keeping, and start taking sales across different regions and markets.

Common online payment methods in the Philippines

There are multiple widely accepted and trusted payment methods in the Philippines. Here’s a practical breakdown of how each one works and who they suit best.

Digital wallets (e-wallets)

Digital wallets allow customers to store funds digitally and pay without using cash or a physical card. With this method, people either top up their balance or receive funds, then use the wallet to scan a QR code or ‘double-tap to pay’ through their phones and at online stores. They’re popular in the Philippines because they’re fast and familiar, and don’t require a traditional bank account.

GCash is the market leader with roughly 94 million registered users². Its prevalence means many major payment processors, such as Adyen, support GCash³, so it should be easy enough to offer at online checkouts. Other popular e-wallets include PayMaya, GrabPay and Coins.ph.

Best for:

• Ecommerce businesses
• Retail stores
• Small businesses targeting locals

Credit and debit cards

Credit and debit cards are one of the more traditional and widely accepted payment methods for online purchases. Major card networks in the Philippines include Visa and Mastercard, though many domestic electronic payments are actually routed through BancNet, the country’s main interbank network, and the clearing switch operator (CSO) behind InstaPay⁴.

The process is quite straightforward: customers enter their card details during checkout, and then the payment is quickly authorized through a payment gateway. They’re still usually the default for higher-value purchases, as well as for recurring subscriptions and any cross-border transactions.

Best for:

• SaaS companies
• Subscription services
• Businesses serving international customers

Bank Transfers

Bank transfers let customers move money directly from their bank account to yours – no cards or e-wallets required. In the Philippines, most of these payments run through InstaPay (quick, low-value transfers) or PESONet (batch transfers processed once per day)². Customers initiate the payment through their bank’s mobile or online portal by entering the business’s bank details.

For MSMEs, bank transfers are often used for larger purchases or B2B transactions. But they usually require the customer to manually enter account information and send proof of payment, so clear instructions are required to reduce errors.

Best for:

• Professional services
• B2B businesses
• Wholesalers

Buy now, pay later (BNPL)

BNPL services let customers split a purchase into instalments instead of paying the full amount straight away. They’re popular because they make bigger purchases feel more manageable, and don’t require a credit card, with the caveat that late payments often come with interest and penalties.

Popular BNPL providers in the Philippines include BillEase, which offers a flexible ‘Pay in 4’ option, Home Credit, Atome, and UnaCash. For businesses, integrating these services into online checkouts can increase conversion rates by making products more affordable at the point of sale.

Best for:

• Online retailers
• Fashion brands
• Furniture and appliance stores

Multi-currency accounts

Multi-currency accounts like Wise Business allow businesses to hold, send, and receive money in several currencies, without the hassle of opening separate bank accounts in each country. They’re useful for MSMEs that work with overseas clients or suppliers because you get local bank details (e.g. USD, EUR) and receive payments as if you were based in that market.

For daily operations, they usually charge lower fees than traditional banks and help reduce foreign exchange costs. The main consideration here is that transfers still rely on bank rails, so payout times can vary depending on the currency and destination.

Best for:

• Importers and exporters
• International businesses
• MSMEs with overseas clients or employees

How to choose the right payment method for your business

With so many different payment methods available, it’s not always easy to decide which options make sense for your business. To get the right mix, you should:

1. Understand how your customers prefer to pay

Customers want convenience when at online checkouts – their preferences should be a starting point. Local consumers may prefer digital wallets like GCash, while international customers might expect card payments. Research how your target audience typically pays and prioritize these methods.

2. Consider the broader payment landscape in the Philippines

Digital payments are growing in the Philippines, but only 58% of adults aged 18+ have formal financial accounts, so it’s best to avoid relying on a single payment method⁵. Similarly, using platforms that support QR code options at checkout can make it easier for customers to pay with their smartphones.

3. Compare fees and settlement times

Make sure to check the costs and payout speeds of the different payment options.

• Card payments - usually percentage-based fees with payouts within 1-3 days.
• Digital wallets - fees vary by provider, but typically offer faster settlement times.
• Bank transfers - may include fixed fees, clearing times depend on the bank and daily ‘cut-off’ windows.
• BNPL - higher merchant fees are common

4. Consider integration and admin

Choosing payment options that work seamlessly with your current setup. In the Philippines, platforms like PayMongo offer ready-made plugins for Shopify and WooCommerce⁶, while GCash can be accepted through processors that support it. Good integrations reduce manual reconciliation (and errors) and cut down on admin.

5. Think about international payments

If you serve overseas customers, it’s best to look for payment options that support multiple currencies and offer predictable payout times – or plug into accounts that let you receive and settle funds in foreign currencies without surprise deductions.

Fees involved with accepting online payments as a business in the Philippines

There are a few standard charges and fees to account for when taking online payments:

• Payment processing - charged per transaction for handling the payment
• Payment gateway - for using the system that routes and authorizes payments
• Monthly platform charges - subscription costs for platform access and other tools and features
• Chargebacks - applied when a customer disputes a transaction
• Fraud prevention - for tools that screen and block high-risk transactions
• Settlement fees - deducted when funds are released to your business bank account
• Currency conversions - added when foreign payments are converted to PHP

Hidden challenges of cross-border payments

When receiving payments from recipients outside the Philippines, you’ll likely run into:

• Exchange rate markups that increase costs every time money is converted to and from the Philippine peso.
• Unexpected bank fees because traditional international transfers are often routed through several banks before reaching you.
• Managing multiple currencies at once, which makes it harder to reconcile your books and track what you’re earning after conversions.
• Poor payment tracking leaving you unsure where a transfer is or when it will actually arrive.

How Wise Business minimizes global payment fees for Filipinos

With a Wise Business multi-currency account, you can access over 8+ local account details — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account.

With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders. Here's what you get with a Wise Business account:

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Send money to pay invoices, suppliers & contractors fast, with less fees
• Always get the mid-market rate with transparent conversion fees starting from 0.57%.
• Pay your bills and ad-hoc overseas expenses using the Wise Business card without hefty foreign transaction fees.
• Seamless integrations with popular accounting software.

➡️Get started with Wise Business today

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Wise Pilipinas Inc. is regulated by the Bangko Sentral ng Pilipinas. You may visit the BSP website for more information about its regulatory framework and consumer protection policies. To reach Wise, visit help center here.

Sources:

1. Trade gov - Philippines ecommerce
2. Forbes - How the Philippines went majority digital
3. Adyen - Payment methods Gcash
4. Bancnet - Who we are
5. Asian Banking and Finance - Filipino bank accounts
6. PayMongo - Shopify