Unicorn startup Xendit took the stage at a fintech summit to lead the dialogue on how the Philippine financial industry can accelerate the digital economy—and fast, by building payment infrastructure.
In line with the Bangko Sentral ng Pilipinas (BSP) Digital Payments Transformation Roadmap and the subsequent National Strategy for Financial Inclusion, Xendit promotes the digitization of payment processes to democratize access to innovation and bridge the gaps in the digital economy.
“The faster money moves in an economy, the faster the economy will grow. There will always be friction points that may slow down the growth momentum, but once we fully digitize the payment process for all Filipinos, we will eliminate the impact of natural infrastructure challenges in an archipelagic country,” said Xendit Philippines President and CEO Yang Yang Zhang.
Until 2021, statistics show that money is still king in the Philippines. But as technology opens the way for new and innovative ways to pay for goods and services, consumer behavior has also changed. Digital banking, e-wallets, QR code payments, and Buy Now Pay Later methods have gained significant traction.
Collaborative ‘pipes’ through which money flows
Encouraged by a favorable regulatory environment, Xendit is building its team in the Philippines in hopes that its technology will introduce a robust payment infrastructure. Xendit’s business partners enjoy a reliable service provided through an integration, with the ultimate goal of creating a payment experience that responds to local needs and promotes inclusive development.
“Basically, we’re building infrastructure on multiple layers. We’re working directly with banks to work together to create world-class solutions to meet their own challenges and those of everyday consumers. By doing this, we’re bringing together financial institutions for merchants to create a seamless payment experience that ultimately empowers customers and businesses,” said Zhang.
Before Xendit’s foray as a local player, many of the payment integrations available today did not exist and had to be built from scratch. Among Xendit’s pioneering products is Direct Debit, a service that allows bank account holders to directly access their funds to make payments on e-commerce sites and increase their e-wallets.
With this convenience, businesses can experience repeat and consecutive purchases from customers, while also enjoying the immediate settlement of funds, resulting in better visibility and immediate access to those funds. Direct Debit is an industry standard worldwide, and now, it has become a definitive experience for Filipino businesses and consumers, too.
The key to the success of a digital payment infrastructure is the support from the consumers who use it. If there is strong consumer confidence in the system, digital acceleration and financial inclusion can be achieved. But for that trust to be undisturbed, government and private sector stakeholders must work together to ensure that transactions are safe and secure and that consumers are educated on their rights and responsibilities in the digital economy.
But as roads and pipelines continue to be built, working on payment infrastructure is a goal-driven process with almost no end in sight. Xendit aims to collaborate not only with merchants, but with a growing number of government and private agencies involved in the transfer of money in the economy. Its unique offering at this time is its ability to scale operations and process millions of transactions efficiently while maintaining on-time performance at all times.
The BSP’s twin goals of converting at least 50% percent of the total number of retail transactions to digital and onboarding 70% of Filipino adults in the financial system are nearing the 2023 deadline. Now is the time to strengthen the country’s digital payment infrastructure, because inherent reliability, scalability, and cybersecurity protections will help facilitate the realization of such a vision.
Xendit is a fintech company that offers payment solutions for businesses. It provides a set of world-class APIs and a dashboard UI that simplifies processes so that businesses and organizations of all sizes can accept a variety of payment methods quickly, reliably, and securely. More information is available on the website, and on LinkedIn, Facebook, Twitter, and Instagram. Interested businesses can sign up to test the dashboard.