Visa (NYSE: V), a leading digital payments provider globally, is pushing for the adoption of xPays or mobile payment providers such as Google Pay, Apple Pay, and Samsung Pay to help solve payment problems encountered by Filipinos when paying using credit cards.
In an enablement workshop, Visa collaborated with regional partners – including Google Southeast Asia, Vietcombank, and Starbucks Vietnam – to gather insights for the xPays adoption in the country.
Jeffrey Navarro, Visa country manager for the Philippines, said adoption of xPays in the Philippines is seen to expand digital and financial inclusion for both Filipinos and foreign travelers, who have come to expect seamless digital payments. Across Asia Pacific, 97 percent of travelers say that they will bring credit, debit, or prepaid cards on their trips, while only 17 percent intend to bring foreign currency.
In the Philippines, 44 percent of travelers report encountering various payment problems, including non-acceptance by merchants. To avoid these issues, Visa has urged for the adoption of xPays.
The company even quoted the Bangko Sentral ng Pilipinas to assure Filipino cardholders that xPays mobile payment providers like Google Pay, Apple Pay, and Samsung Pay are classified as technology service providers, and not operators of payment systems (OPS), which require prior registration to operate. This means the xPays cannot hold funds for Filipino consumers and will need to be linked to users’ credit, debit, or e-money accounts to work, Visa said.
Once a Visa card is added to a digital wallet like Google Pay, it can be used to tap and pay in stores, online, or in apps, without needing the physical card. Every transaction is protected by Visa’s security technology, offering peace of mind with every purchase.
In Southeast Asia, Visa said, tokens are used through xPays in markets such as Vietnam, Singapore, Malaysia and Thailand to create a seamless and secure payments experience for consumers and businesses. Tokenization is at the core of this technology, where every time a Visa card is added to an xPay, the actual card number is replaced with a unique digital token. This token is stored securely on the device and is used, alongside a dynamic cryptogram, to authorize each payment. This means the cardholder’s real account information is never shared with merchants or stored on the device, which significantly reduces the risk of fraud.
Visa has issued more than 10 billion tokens as of 2024, with more than 1.5 million e-commerce merchants transacting with Visa tokens everyday. Visa’s Token Service (VTS) contributed to a US$2 billion uplift for merchants in Asia Pacific in 2023, while payment fraud rates have been cut by more than half (58%).
“Digital wallets like Google Pay, Apple Pay, and Samsung Pay amplify the power of Visa by delivering secure, seamless, and innovative payment experiences for consumers, businesses, and our banking partners. Each tap is protected by Visa’s network token technology, ensuring trust and security while advancing the Philippines’ digital payments landscape. As a trusted global partner, Visa is proud to support the country’s financial inclusion goals by connecting local innovations to our global network –helping Filipinos pay and be paid with confidence, and driving inclusive growth across communities,” said Navarro.
