Local government units (LGUs) are being urged to fast-track the modernization of public collection systems as digital payments continue to dominate everyday transactions in the Philippines.
Speaking before thousands of local legislators at the Philippine Councilors League National Congress, Wei Zhou, chief executive officer of Coins.ph, challenged local leaders to upgrade outdated systems that slow service delivery and limit efficiency.
Zhou said Filipinos have already embraced digital payments at scale, and government services must catch up with changing public expectations. Citing data from the Bangko Sentral ng Pilipinas, he noted that digital payments accounted for 57.4 percent of the country’s retail payment volume in 2024.
“The behavior shift has already happened,” Zhou told local legislators. “Citizens now expect the same fast and seamless digital experience from government that they receive from the private sector.”
He described administrative friction in traditional systems as an “invisible tax” on communities. Manual processes, he said, often lead to wasted time, delayed financial reporting, and operational risks tied to the handling of physical cash.
Even small inefficiencies can carry large fiscal consequences for local governments. Zhou illustrated that a one-percent inefficiency in an LGU with a P500-million revenue base translates to about P5 million in lost value—funds that could otherwise support scholarships, classrooms, or social services.
The rapid expansion of digital payment infrastructure also underscores the urgency of modernization. According to Zhou, transactions processed through QR Ph using Coins.ph surged dramatically—from ₱559 million to P29.95 billion within just 12 months in 2025.
Digital collection systems can help LGUs streamline tax and permit payments, accelerate aid distribution, and ensure continuity of services during emergencies or natural disasters.
“Modernization will happen; the question is timing,” Zhou said. “Design decisions are leadership decisions. Local leaders have the opportunity to build systems that make public services more efficient, resilient, and inclusive for every Filipino.”
