Retail in Asia

In Trends

Philippine telcos unveil more payment options for digital goods

Telecommunications companies in the Philippines are making it easier for Filipino shoppers to purchase digital goods such as apps, games, books, magazines, music and movies.

With only around four percent of Filipinos owning credit cards, according to the CIA Fact Book in 2013, it is difficult for consumers to participate in e-commerce and fully enjoy a digital lifestyle.

With the direct carrier billing service now provided by both Smart Communications Inc. the and Globe Telecom, it is expected that

The pay-with-load service of Smart Communications, dubbed Pay-With-Mobile, unveiled on Friday, allows subscribers to purchase from the App Store and iTunes using prepaid load or to charge the purchase to their monthly phone bill.

The service, which Smart said will be fully available on 18 February, eliminates the need for a credit card to make in-app purchases, which has long been a barrier for many Philippine shoppers.

Smart said a 15 percent premium will be charged on top of the published App Store and iTunes rates to account for VAT (value-added tax) and foreign exchange rate difference in US dollars.

To get started, users need to register their mobile number to get a Pay-With-Mobile number, which they can enroll in their Apple ID account to start making purchases.

“Smart understands that not everyone owns a credit card, but that shouldn’t stop people from realizing the full potential of their mobile devices," said Charles Lim, EVP and Wireless Consumer Division Head at Smart.

Globe Telecom, for its part, has earlier launched its own direct carrier billing services for in-app purchase on Google Play last October.

For Apple customers, Globe susbscribers can purchase from the Apple App store through the GCash American Express Virtual Pay, a service it introduced in 2012.

Globe said app purchases comprise 27 percent of total GCash American Express Virtual Play purchases. Meanwhile, Google Play Store app purchases has more than doubled since its launch last October.