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In focus
For this edition, we cover:
- Why small shops in the Philippines shun merchant accounts
- After a stormy 2023, Osome steers toward profitability
- OpenAI’s potential $3b acquisition
Hello reader,
The laundry shop I frequent in Manila occasionally declines my e-wallet payments – not because the shop’s service is free but due to a transaction cap.
The owner collects payments using their personal e-wallet account, which has a monthly limit on incoming funds. By the time I arrive, that limit is often reached, forcing me to pay in cash.
It’s not just this laundry shop, too. Merchant accounts, with higher limits and more features, are not widely used in the Philippines. In fact, a recent study by the country’s central bank found that over 90% of micro and small businesses don’t use them.
In today’s Big Story, we look at how payment providers are sweetening the deal, offering everything from loans to point-of-sale devices to make the lengthy, often pricey merchant account process worth it.
Meanwhile, our Spotlight dissects the financial statements of accounting platform Osome and raises fresh questions about the firm’s long-term viability.
The Big Story
Why small shops in the Philippines shun merchant accounts
Nerissa Elamil has been operating her vegetable shop in Quezon City for more than five years. / Photo credit: Elyssa Lopez/Tech in Asia
Despite the rise of cashless transactions in the country, payment service providers face resistance from MSMEs to embrace merchant accounts.
Spotlight
After a stormy 2023, Osome steers toward profitability
Download the recording of our expert panel discussion with Petronas Ventures
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