According to the DTI, all interested DTI-registered businesses would be included into the fintech's platform as a result of the cooperation with JustPayto. Registered businesses signed up with JustPayto will be able to make bank transfers, electronic wallets, Visa and Mastercard credit and debit cards, both online and in-person.
Besides, the micro, small, and medium enterprises (MSMEs) will be able to track their cash flow while establishing their credit history for future loans. JustPayto will also hold presentations and workshops about entrepreneurship in several areas.
The DTI is seeking to bring about the economy’s digital transformation, highlighting that MSMEs should be digitally driven enterprises needing support during their transition.
JustPayto was established in 2016 and is licensed and governed by the Bangko Sentral ng Pilipinas, as well as registered with the Securities and Exchange Commission. With JustPayto, users can accept a variety of payments without having to deal with various banks or difficult apps.
As the digital payments ecosystem continues to grow, with businesses and individuals adopting digital instruments, the MSME industry has also begun to walk the talk on the digital payments initiative. Thus, MSMEs have increasingly recognised the importance of adopting digital technologies to reduce inconvenience to their customers and suppliers, bring down the administrative burden on their business, as well as minimise the risk of losing essential records. And digitising payments is a necessary part of that story.
MSME digitalisation has a number of benefits, including improved cash flow, faster realisation of funds, and increased store cost efficiency. Better understanding of spending patterns and the eradication of bad debts will both be facilitated by a computerised record of payment transactions.
The digital payment ecosystem can undoubtedly unlock massive value for MSMEs by helping them expand their customer base and providing upsell opportunities, reducing costs, and creating a digital footprint that would enable easy access to credit at cheaper rates.
MSMEs comprise 99.5% of total Philippine enterprises. They contribute to 35.7% of total value-added in 2020, 60% of all exports, representing 25% of total export revenues, and support 62.7% of total employment.
MSMEs in Southeast Asian economies mostly target local markets, and their entrepreneurship levels are still below average. Supporting the growth of MSMEs, especially in terms of technology adoption and involvement in global supply chains, can help promote inclusive growth.
For instance, MSMEs are said to have the ability to increase employment. 72% to 85% of MSMEs in Southeast Asia are located in rural regions. They employ between 70% and 84% of MSME workers in respective nations. Their development is therefore essential for giving the unemployed or informal workforces jobs.
The development of entrepreneurship, particularly in the services sector of MSMEs, which are found to be low-technology and domestically focused, will enable inclusive growth in developing region of Asia.
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