Despite the increasing number of cashless transaction options for e-commerce activities, cash remains the preferred mode of payment for most Filipinos making online purchases.
This was one of the key takeaways from “The State of e-Commerce 2017,” a white paper recently published by the Malaysia-based iPrice Group.
Based on the research that covers the six largest Southeast Asian markets in Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam, 80 percent of e-commerce merchants in Vietnam and the Philippines, in particular, are offering Cash on Delivery options.
“Due to low credit card penetration in the region (with the exception of Singapore), e-commerce players in Southeast Asia have had to face unique challenges, unbeknownst to the western ecommerce markets. As a consequence of this structural shortcoming, a much more diverse range of payment solutions have proliferated in the region,” the study noted.
Other payment solutions preferred by Southeast Asians are bank transfers, offline POS and installment.
The Philippine office of popular online shopping platform Lazada has attested to the preference for cash payment. “80 percent of our transactions are paid with cash while the remainder are cashless transactions,” noted Jio Zorrilla, Lazada Philippines’ Associate for Brand Management and Communication.
The same iPrice study also noted that Filipinos have developed a “3 o’clock habit” when it comes to their favorite time to make online transactions which is usually mid-afternoons whether they’re at home, school or at work.
“Considering the average number of order of the local country as reference (100 percent), the number of orders is highest between 9 a.m. and 5 p.m., when people are traditionally at work or school, with the exception of Singaporeans, who seem to enjoy evening shopping more than other countries, peaking at 10 p.m. …
Consistently across countries, there is a dip between 5 p.m. and 7 p.m., were people typically commute and have dinner, before getting back into online shopping until 11 p.m.,” the study further noted.
Wednesdays also turned out to be the day of the week when consumers across the region do the most shopping, with a peak conversion rate that is up between 4 to 15 percent from the average weekly rate.
The iPrice research aims to shed light on some of the most important e-commerce metrics from the perspective of thousands of e-commerce operators across the six largest Southeast Asian markets. “The State of e-Commerce 2017” can be viewed and downloaded at iPrice.ph.
View the full study here: The State of e-Commerce 2017