Shopee sees digital payment adoption rise as e-commerce grows

MANILA – Online shopping platform Shopee expects increased digital payment adoption, growth in the logistics industry, and implementation of innovative retail strategies from brands and sellers in the Philippine e-commerce market this year.

In a statement Tuesday, Shopee said the coronavirus disease 2019 (Covid-19) pandemic has accelerated growth in the e-commerce industry.

Shopee Philippines director Martin Yu said with the community quarantine measures, consumers have turned to online platforms for their daily needs, entertainment, and interaction.

The previous year also transformed e-commerce as online shopping evolved from a purely transactional experience to a more social experience.

“With advancements in technology, increasing internet penetration, and a fast-growing population of young, tech-savvy youths and middle-income families, we expect e-commerce to play an integral role in the way we live, connect, and do business,” Yu said.

For this year, Shopee expects increased adoption of digital payments among Filipino consumers.

As digital payment is the preferred mode of payment for online transactions, people are expected to become more accustomed to e-payment systems and this will also drive cashless payment offline.

For Shopee, orders completed by using mobile wallets improved by four times.

“In line with movement restrictions and continued social distancing efforts, consumers and businesses have increasingly embraced digital payments for greater convenience and security,” it said.

The growth of e-commerce also drives the development of the logistics sector, Shopee said.

“Logistics will become even more important as consumers continue to rely on e-commerce platforms and develop greater expectations for efficient deliveries. The increase in demand is particularly significant for daily necessities and household essentials. In the Philippines, Shopee saw an 8.5 times increase specifically in food-related items shipped from the Shopee warehouse,” it added.

The online shopping firm said brands and sellers should make effective use of technology to deliver parcels in a timely and cost-effective manner.

Shopee expects brands and sellers to implement innovative retail strategies to continue reaching customers amid community quarantine restrictions.

“At Shopee, we are committed to improving the lives of people in the region using technology. I truly believe that our region has the potential to chart a new path forward in influencing the way businesses and consumers connect. We will continue to innovate to stay ahead of these evolving trends, and to drive the growth of e-commerce in 2021 and beyond,” Yu said.

Meanwhile, the Department of Trade and Industry targets the e-commerce industry to be a PHP850-billion industry by end-2021 under its e-commerce roadmap.

The roadmap also aims to increase e-commerce’s share to the economy from 3.4 percent in 2020 to 4.3 percent this year and adding 250,000 e-commerce enterprises from 2020’s half a million online businesses.