Cash remains a major force in Philippine online shopping, with about 23 percent of all e-commerce transactions still paid through cash on delivery (COD), according to the Xendit Ecommerce Payments Momentum Report 2026. This figure is the highest in Southeast Asia—far above Vietnam’s 16 percent—even as COD shares drop sharply across much of the region.
While COD usage is declining in most neighboring countries, around 12 percent of Filipino consumers say they will stick to cash and nothing will easily change their minds. That is roughly double the share seen in most other markets surveyed. Regional COD volumes have fallen from about half of all online transactions in 2019 to less than one-third today, but the Philippines remains one of the few markets where COD will stay above 20 percent even as the rest of Southeast Asia dips below that mark.
Xendit Philippines head of go-to-market Ina Gatan noted that merchants still face strong customer preference for cash. “Our country loves cash. When I talk to merchants, no matter how much they want to go digital, they always say cash is still king,” she said. The report also links this trend to access to banking services, explaining that countries with wider financial inclusion see COD fall faster.
For consumers, the biggest push toward digital payments comes from direct rewards. Gatan explained that discounts or cashback offered at checkout when choosing digital methods are the top reason people would switch away from paying cash. Meanwhile, e-wallets and instant payment systems are growing fast: QR Ph and InstaPay transactions nearly tripled between January 2025 and April 2026, while established e-wallets like GCash grew by a steady 3 percent over the same period.
Most importantly for shoppers and sellers alike, the report found that 41 percent of Filipinos will simply abandon a purchase if their preferred payment option is not available. That means giving customers the choice between cash and digital methods is still essential for online businesses hoping not to lose sales.
