Unicorn startup Xendit took the stage at a fintech summit to lead the dialog on how the Philippine finance industry can accelerate the digital economy—and fast, through building payments infrastructure.
Xendit has been advocating the digitization of payments processes to democratize access to innovation and bridge gaps in the digital economy in line with the Bangko Sentral ng Pilipinas’ Digital Payments Transformation Roadmap and its subsequent National Strategy for Financial Inclusion.
“The faster the money moves through an economy, the faster the economy can grow. There will always be friction points that can potentially slow the momentum of growth, but the moment we are able to fully digitize the payments process for all Filipinos, we can erase the effect of the natural infrastructure challenges of an archipelagic nation,” said Xendit Philippines president and chief executive Yang Yang Zhang.
Statistics showed that cash was still king in the Philippines until 2021, but as technology paved the way for new and innovative ways to pay for goods and services, consumer behavior shifted. Digital banking, e-wallets, QR code payments and Buy Now Pay Later methods have gained significant traction.
Spurred by a favorable regulatory environment, Xendit built its Philippines team in hopes that its technology could introduce robust payments infrastructure. Xendit’s partner businesses enjoy its reliable service delivered through a single integration, with an end-goal of creating a payment experience that is responsive to local needs and promotes inclusive progress.
“Fundamentally, we build infrastructure on multiple layers. We work directly with banks to co-build world-class solutions to address their own challenges and those of everyday consumers. By doing so, we aggregate financial institutions for merchants to create a seamless payment experience that ultimately empowers both customers and businesses,” said Zhang.
Prior to Xendit’s foray as a local player, many of the payment integrations currently available did not exist and had to be built from the ground up. 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 top up their e-wallets.
With this convenience, businesses experience repeat and subsequent purchases from those customers, while also enjoying the instant settlement of funds, resulting in better visibility and immediate access to said funds. Direct Debit is an industry standard across the rest of the world, and today, it has become a definitive experience for Filipino businesses and consumers, too.
Core to the success of a digital payment infrastructure is the support from consumers who will use it. When there is strong consumer trust in the system, digital acceleration and financial inclusion can be achieved. But in order for that trust to become unassailable, stakeholders in both the government and private sectors 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.
Xendit aims to work with not just merchants, but more government and private agencies involved in the transfer of money in the economy.
