GCash eyes easier payment checking for SMEs

The Philippines’ biggest fintech platform is targeting the retail sector.

GCash for Business recently launched SoundPay, a device that audibly alerts merchants when payments are received, ensuring hassle-free operations for small and medium enterprises (SME).

“Right now, what people typically do is they have a phone — they'll pull it out of their drawer to check if they have been paid,” Jong Layug, head of GCash for Business, told Asian Banking & Finance in an interview. “In some cases, when the customer is far from the cashier, the staff has to go back and forth to verify the payment, then they'll return to the customer to provide a receipt.”

This disrupts service and consumes time that could have been spent on serving more customers, according to the Philippines’ biggest fintech platform.

Layug said SoundPay fixes these inefficiencies, allowing smoother operations. "In other countries, similar systems embed sound-based payment capabilities into QR codes that were once just printed on cardboard.”

He said it cuts queuing times, and early adopters have reported faster customer service since integrating the device.

“It’s hard to fully dimension the savings, but based on feedback from merchants, they like it and they’re asking for it,” Layung said. “It’s just hard to quantify, but the benefit is there.”

GCash for Business is expanding SoundPay’s adoption in the service sector, including food and retail, he said. “Our sweet spot will be SMEs, but if we can get to the magtataho (streetside silken tofu vendor) where he could just wear [the device] like a lanyard, making it portable, he won’t have to bring a phone with him anymore.” 

The company will also partner with larger enterprises, including major oil companies like Caltex, SeaOil, and Unioil to expand SoundPay’s footprint.

SMEs can apply for SoundPay through GCash for Business or its onsite representatives without an additional cost. The device is provided free of charge, but Layug said the company might introduce charges in the future depending on its development.

Despite the device's user-friendly design, raising awareness and educating SMEs about its use remains a challenge, Layug said. GCash for Business has been deploying teams to SME-centred events, demonstrating how SoundPay and other business bundles work.

Layug said there are infrastructural and financial challenges that could slow adoption. Almost 50% of Philippine villages lack private telecommunication service coverage, which limits mobile data access, according to the World Bank.

And whilst GCash has about 96 million registered users, this leaves a big part of the country’s 116 million people without access to e-wallets or banking services.

Layug also noted that other merchants struggle to comply with some requirements to avail themselves of GCash for Business bundles. 

GCash for Business is working with regulators to simplify the requirements for SMEs. The company has partnered with about two-dozen local governments to gather SMEs for training sessions.

“When you do that, it’s not just the [SoundPay] device; to the merchant, accepting payment is just a small piece of their end-to-end [process] and areas of problems.”

These initiatives go beyond the use of the SoundPay device, focusing on basic business skills such as accounting, legal compliance, supply chain management, and marketing. Partnerships with platforms like Canva and TikTok Shop also let merchants promote their products more effectively, Layug said.

GCash for Business is also targeting unregistered businesses in the informal economy. “The aspiration has always been to get to everybody,” he said. “We want to help turbocharge the businesses of Filipinos, and the main way we do that is by helping them digitalise their business.”