With only 5 to 6 million Filipinos owning credit cards out of a population of over 90 million, e-commerce may dominate the local marketplace in a “surprise-free future” — anticipated shifts that do not come on schedule.

That is, if more consumers will use electronic wallets, according to Donald Patrick Lim, President and CEO of Yehey! Corporation, the country’s number one search engine and internet portal, during the recent e-Commerce Summit.

Todate, most e-commerce sites only accept credit card payments. The lack of secure payment portals as well as people-centric e-commerce sites also need to be addressed, he noted.

The Philippines’ low Personal Computer (PC) penetration — 24 Million, is no barrier to e-commerce, inasmuch as most people can now access the Internet via their cellular phones. The country has over 70 million cellular phone subscribers although only about 2 million access the Internet via their mobile devices at present.

Of more than 4 billion worldwide who have mobile phones, only 1 to 1.7 billion will have bank accounts by 2012, according to the World Bank-based Consultative Group to Assist the Poor (CGAP) and the GSMA Association.
Hence, for the unbanked and the under-banked sectors of society e-Commerce is a great equalizer.

Nevertheless, one does not become an overnight billionaire in e-commerce. “It’s still uphill battle. It’s all about people not payment gateways. People will buy online when they are ready. Our e-commerce volume is still small but we want to be there when it happens,” according to the Yehey CEO.

Retail sales in the Philippines totaled more than US$24 billion in 2008 and is projected to grow to US$36 billion by 2013. Last year’s consumer spending per capita was pegged at US$1,556 and is expected to increase to US$2,131 in 4 years. The average annual wage was placed at US$1,900 in 2008, with family members working overseas boosting household incomes.