MANILA — Security Bank Corp. plans to make its cards available on both Apple Pay and Google Pay by the second half of 2027 as it seeks to leverage the rapid growth of digital transactions in the Philippines. Apple Pay and Google Pay let cardholders pay in stores and online using supported phones and wearables instead of physical cards.

Security Bank President and Chief Executive Officer Victor Lee Meng Teck told reporters last week that the bank is currently overhauling its core card system, a move that will prepare it for xPay integration. The upgrade is the foundation for the planned rollout, making its completion the marker to watch on the bank's stated timeline.

He said the bank expects demand for these services, especially for Apple Pay, as about 80% of its Wealth business customers are Apple device users. "So, you need to be relevant with them."

Mr. Lee said the bank expects cashless transactions to grow further amid increased use of online payment channels, particularly as many Philippine banks waive their digital interbank retail transfer fees.

Trust Remains a Hurdle

However, trust remains a concern for xPay services, which are tied to digital wallet structures for payment detail tokenization, he said. Under tokenization, a card's real account number is replaced with a device-specific code at checkout, keeping actual card details away from merchants.

"The question mark really is on the wallet. I've seen in markets like Thailand, Cambodia, when QR comes out, banks typically can take back their payments business. Or at least, payment coming to your bank account because what happens in a wallet structure, you have to learn," he said. Both markets have rolled out standardized national QR payment schemes in recent years.

"And what's interesting, you know that InstaPay among all banks is free. So, it becomes more and more convenient. And if you integrate that with your debit card and credit card, you know, the QR is so unified. Because, I mean, honestly speaking, when you think about a wallet, would you put your entire savings into a wallet?" he said. InstaPay is the Philippines' real-time interbank retail payment system, operating under the oversight of the Bangko Sentral ng Pilipinas.

"So, I think that trust gap is still quite evident in a wallet. You look for micro-payments, but you don't want to put your entire savings. So, do you think banks have the chance to be more relevant once you enable payments?"

Digital Payments on the Rise

Digital payments accounted for 64.7% of the total volume of retail payments in the Philippines in 2025, up from 57.4% in 2024, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).

This landed at the low end of the central bank's goal of having digital payments account for 60% to 70% of the total volume of retail payments by 2028, in line with the Philippine Development Plan. The steady migration underscores the payments battleground Mr. Lee described, in which banks are working to stay relevant as digital channels multiply.

Retirement Products on the Radar

Meanwhile, Security Bank is also looking into offering Personal Equity Retirement Account (PERA) products amid the central bank's ongoing push to promote savings.

"We have more people having gaming accounts than securities accounts. So, we want to [promote] financial literacy and help people, particularly younger people, as they understand the stock market more and they can start to take equity ownership," Mr. Lee said.

"Because the market is very shallow. But it's a huge population. That's the space. It's very important."

PERA, created under Republic Act No. 9505 in 2016, is a voluntary retirement savings program that supplements benefits from Social Security System, the Government Service Insurance System, and employer-provided plans. The program carries tax incentives on contributions and investment income under the law. Contributors aged 18 and above with a tax identification number may open a PERA.

As of end-June, accumulated PERA contributions jumped by 45.3% year on year to P757.554 million from P521.363 million, central bank data showed. The total number of PERA contributors likewise surged to 30,055 from 6,193 in the same period last year.

Earnings and Shares

Security Bank booked a net income of P3.38 billion in the second quarter, up from P3.04 billion a year earlier. This brought its first-half profit to P6.08 billion, rising from P5.86 billion previously.

Its shares rose by 20 centavos, or 0.32%, to close at P62 each on Monday.

— AMCS

Source: Security Bank eyes xPay integration for cards by 2027 — BusinessWorld