NTT DATA's ADAPTIS targets 43% payments adoption gap

It will fix reliability issues, correct cash misconceptions, and offer value-driven solutions.

Despite gains in digital adoption, cash remains dominant in the Philippines, with 43% of payments still outside the electronic system. At the NTT DATA Payment Solutions Launch in Makati, Jay Tirona, CEO & President of NTT DATA Payment Services Philippines, said ADAPTIS is positioned to address gaps that existing platforms have yet to close.

“At 57%, the BSP has done a good job in pushing that penetration… but if you think about it, that's still 43% to go big upside,” Tirona said.

He stressed that reliability continues to hinder adoption. “You've seen electronic payments in your favorite stores for many years, but I bet you you will also complain or have experienced where it does not work,” Tirona said, citing how cashiers often abandon faulty devices. “We cover the market 18 out of 18 regions… service engineers to go and repair those devices and actually implement and educate the merchants properly.”

Tirona also pointed out that financial misconceptions fuel resistance to digital adoption. “A common misconception by the 43% who are still fully accepting cash is that cash has no cost. They will say, why will I pay rent on a device? Or why will I pay X percent per transaction? It's not free. Cash can be pilfered. Stolen cash is hard to reconcile,” he said. He explained that electronic payments ensure faster deposits, transparency, and easier reconciliation for merchants.

On pricing, Tirona emphasised that ADAPTIS will not compete on low fees alone. “I believe in a pricing strategy that is based on value, not economics,” he said. “What will happen if you compete on price and your margins become squeezed… what will suffer from service quality over time. It is not a sustainable business model.”

Instead, ADAPTIS will pursue a broader strategy. “Our strategy now is to differentiate ourselves from the point of sale to the cloud… solving complex requirements and having the know-how and the expertise to understand client business requirements and develop to meet their needs,” Tirona said.