Insider Spotlight
Executives at “The Anatomy of Merchant Trust,” a roundtable co-hosted by IDfy and Mastercard in Manila, said merchant infrastructure needs to keep pace with rising adoption of digital payments. Consumer adoption of channels such as QR Ph has surpassed 57 percent, according to Bangko Sentral ng Pilipinas data cited by organizers.
Why it matters
Fragmented merchant identity verification can force financial institutions to impose broad risk policies, potentially excluding legitimate businesses without traditional credit histories.
Industry leaders said automated, risk-based verification could replace some paper checks and physical audits, complementing government programs such as the Department of Trade and Industry’s “Tindahan Mo, e-Level Up Mo!” initiative.
The bigger picture
Participants also called for continuous fraud monitoring rather than relying solely on checks conducted during onboarding. Real-time behavioral analytics could help detect document forgery, deepfakes and misuse after merchant approval while reducing friction for legitimate businesses.
“Merchant trust is no longer a one-time verification exercise—it is a continuous lifecycle. As digital payments scale across the Philippines, institutions must move away from fragmented onboarding and adopt intelligent, risk-based systems that unify identity verification, alternative data, and real-time monitoring. The future of financial inclusion depends on enabling MSMEs to be onboarded quickly and safely at scale,” IDfy PH country head Raghuraman Chandrashekhar said in a press statement.
What’s next
Financial institutions are increasingly using digital payment records, utility payments and transaction footprints as alternative data for assessing small merchants. Combined with lending models that increase credit limits as businesses grow, alternative underwriting could expand access to formal financing.
“Merchant trust extends well beyond onboarding. As more businesses participate in the digital economy, the industry needs to strengthen collaboration across banks, payment providers, fintechs, and technology stakeholders,” Mastercard country manager for the Philippines Jason Crasto said.
The industry’s push is ultimately aimed at turning stricter risk controls into more targeted safeguards, allowing legitimate MSMEs to gain access to digital payments, security and capital without weakening fraud defenses. —Vanessa Hidalgo| Ed: Corrie S. Narisma
