- Cash on delivery (COD) remains a major payment method for Philippine online shoppers, accounting for about 23% of e-commerce transaction value processed through fintech firm Xendit, even as digital payments continue to gain ground.
- The Philippines is expected to remain one of the few Southeast Asian markets where COD accounts for more than 20% of online sales in 2027, according to Xendit’s E-commerce Payments Momentum Report, prepared with market intelligence firm Cube.
- The report surveyed 6,000 online shoppers across six Southeast Asian markets, including 1,000 respondents from the Philippines.
Cash on delivery (COD) remains a major payment method for Philippine online shoppers, accounting for about 23% of e-commerce transaction value processed through fintech firm Xendit, even as digital payments continue to gain ground.
The Philippines is expected to remain one of the few Southeast Asian markets where COD accounts for more than 20% of online sales in 2027, according to Xendit’s E-commerce Payments Momentum Report, prepared with market intelligence firm Cube.
The report surveyed 6,000 online shoppers across six Southeast Asian markets, including 1,000 respondents from the Philippines.
Why Filipino shoppers still rely on COD
The Philippines’ continued reliance on COD reflects several challenges that make digital payments less appealing or accessible to some consumers.
Xendit Philippines head of go-to-market Ina Gatan cited the country’s cash-dependent consumer base, limited access to banking services, and concerns about online transaction security as factors slowing the shift to digital payments.
Across Southeast Asia, COD is projected to fall below 25% of e-commerce sales value in 2027. The Philippines, however, is expected to remain above the 20% mark.
Xendit head of marketing Valerie Cai estimated that the Philippine market could fall below that threshold within the next couple of years, although the timing remains uncertain.
Despite continued reliance on cash, the report found signs that shopping habits are changing. About 33% of Filipino respondents said they used COD much less frequently than a year earlier.
However, 12% said nothing would convince them to stop using COD, roughly twice the proportion reported in most neighboring markets.
Discounts and payment security could encourage digital payments
Discounts and cashback were identified as the strongest incentives for shoppers to switch to digital payment methods.
However, financial incentives may not be enough on their own. Xendit also highlighted the importance of reliable refunds and stronger payment security in encouraging consumers to trust digital transactions.
These factors matter to shoppers who may be concerned about sending money before receiving their orders or having difficulty recovering funds when a transaction goes wrong.
Digital payment activity is already growing. Transactions using QR codes and bank transfers surged by 198% between January 2025 and April 2026, supported largely by the adoption of QR Ph and InstaPay.
QR Ph accounted for around 13% of e-commerce transaction value processed through Xendit. E-wallet payments grew by a more modest 3% during the same period, partly because they already represent a substantial share of Philippine online payments.
Cross-border online shopping remains limited
The report also pointed to room for growth in cross-border e-commerce, which covers purchases made from sellers in other countries.
The Philippines had an estimated 9% cross-border share of e-commerce sales in 2026, among the lowest in Southeast Asia. Indonesia was lower at 6%, while Singapore recorded 19%, Thailand 15%, Vietnam 14%, and Malaysia 12%.
Xendit projected that regional cross-border e-commerce could grow by 11% to 19% annually through 2030, depending on regulatory developments and improvements in payment connectivity.
Across Southeast Asia, the e-commerce market reached an estimated $197 billion in 2025, up from around $3 billion in 2012. Cube expects the market to exceed $400 billion by 2031 as more retail spending moves online.