The Philippines - From “Sick Man of Asia” to FinTech Phoenix
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Sick Man
Once dubbed the “Sick Man of Asia,” the Philippines spent decades coughing through political chaos, corruption, blackouts, and ballooning debt—while its neighbours roared ahead on the back of industrial booms. From the 1970s through the ‘90s, it was stuck in survival mode, propped up by rice and remittances. Recovery only began to stir after People Power and a few reform-minded leaders finally got the patient off life support.
NRP’s partners started pitching deals there in the mid-90s—when the country was still an ugly duckling, in economic terms, in a region of Asian tigers. Our early pitches included the mandate to kickstart Fort Bonifacio’s redevelopment by bringing in a JV partner. Today, it’s one of Asia’s premier business hubs, and a home to many of the FinTechs making the Philippines such an exciting place to do business.
But back in the early 2000s, we cut our teeth working on and completing a series of landmark Philippines deals -- the US$1.4 billion acquisition of SMART by PLDT and the associated investment in PLDT by NTT was an initial highlight. After that, our partners were involved in various deals for San Miguel, helping transform it from the F&B focused company it was, into a diversified infrastructure player today. All far removed from tech, but they gave us insight into how to get deals done in the Philippines -- plus while walking to meetings, we got used to avoiding open manholes and dodging jeepneys.
FinTech Phoenix
Who could have imagined the Philippines would flip from "Sick Man" to FinTech phoenix within thirty years? The revolution has been built on a young, mobile-first population and one of the world’s highest smartphone penetration rates. With over 70% of adults previously unbanked, FinTechs are plugging gaps in digital payments, lending, and remittances. There are now 65 million digital wallet holders in a population of 117 million. GCash (founded 2004) and Maya (founded in 2000) dominate, while startups expand into crypto, neobanking, and InsureTech.
Regulatory support (from the Bangko Sentral ng Pilipinas, aka the BSP), especially the issuance of digital bank licences, has fueled competition while remittance flows, e-commerce and investor interest have made the Philippines a dynamic FinTech hub. Ironically, it’s the culture of remittances that laid the foundation for today’s FinTech surge. Overseas Filipino Workers (OFWs), all 2.3 million of them, sent more than US$38 billion home in 2024 – that’s more than 8% of GDP. All that money has looked for faster, easier and cheaper alternatives to Western Union.
And in Manila, the phoenix rising is underscored by that Fort Bonifacio development, transformed from an abandoned army base to gleaming grid city. Rebranded as Bonifacio Global City, it’s the home to finance, tech, BPOs, luxury condos, and five-star hotels. Fewer open manhole covers now!
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Stormy Region, Sunny Philippines
Looking more broadly - Southeast Asia’s FinTech industry is enduring its roughest patch in six years. Funding plunged to US$631 million across 57 deals in H1 2025, down from US$4.3 billion across 177 deals in H1 2021, according to DealStreetAsia and Kickstart Ventures. Yet the Philippines is defying gravity, raising US$165.8 million in H1- more than double the funding in Indonesia despite having a quarter of the population. For once, Makati’s dealmakers have reason to crow.
Behind the surge is payments and digital lending. Metro Manila may run on caffeine, but its commerce now hums on digital rails. Maya dominates merchant services, processing over ₱1 trillion (about US$17.2 billion) last year and ranking as the country’s top Visa-acquiring platform. The quiet engine of the Philippines’ fintech revival is business payments, not consumer wallets.
Meanwhile, Maya and its cousin, Maya Bank, both turned a profit in the first quarter of 2025—still somewhat rare in South East Asia FinTech. Maya has built an ecosystem that proves scale and profit can, at last, coexist.
PayMongo also deserves a starring role. Started in 2019 and now with more than 12,000 businesses on its platform, PayMongo’s rapid climb mirrors the market’s evolution. Stripe led its US$12 million Series A and PayMongo has been celebrated both as a disruptor and as winner of Visa’s “Most Innovative Payment Facilitator” Award for enabling digital payments across merchants.
What’s new? PayMongo is pushing card acceptance, digital wallets, and instant payment links to thousands of sari-sari stores and micro-entrepreneurs. Alongside GCash, Maya, and HitPay, it’s making QR and cashless payments achievable for virtually anyone. Competition is fierce, but the pie keeps growing—and the fires of innovation burn bright thanks to Stripe’s deep pockets and global playbook.
Lending & BNPL Boom: Rewrite the Narrative
Lending is also rocketing ahead. With high demand for alternative credit, continued digital adoption, and strong regulatory guidance, the ecosystem seems built for durable growth. Meanwhile, 47 million Filipinos remain unbanked, presenting a significant addressable market.
In that space, we have seen Cashalo and Salmon raise a combined US$163 million in June 2025 alone. Cashalo locked in a US$75 million loan facility from Community Investment Management, enabling it to build on its 5 million loans and mission for financial inclusion. Cashalo’s data-driven approach and commitment to transparency have clearly resonated with institutional investors seeking exposure to the region's credit transformation.
Salmon raised $88 million in growth funding in June, and they’ve since drawn down an additional US$50 million on their debt facilities in mid-September. Operating through its BSP-regulated bank (the Rural Bank of Sta. Rosa Laguna), Salmon offers what it claims is the highest deposit rate in the Philippines at 8.88%.
In addition, Buy Now Pay Later isn’t just a buzzword. With 28.4 million Filipinos using BNPL by end-2024—a 40% jump in a year—the country boasts the second-highest BNPL penetration rate in Southeast Asia (over 30% of digital commerce users). Only Singapore slightly edges it out but, let’s face it, with GDP per capita differences, that says a lot. Atome, Singapore-based but with expansive Philippine operations, is pushing hard: 4 million local customers, and a US$48 million Maya Bank partnership means both BNPL and digital banking are on the path to maturity.
According to Dmitry Levit, Partner at Cento Ventures, there are structural reasons why BNPL remains vibrant in the Philippines, even as it has slowed elsewhere.
“It works well in the Philippines for all the reasons we’d expect — credit scarcity, mobile-first consumers, merchant demand — and the numbers now show it’s not just a moonshot. It’s real, and growing fast.”
According to Levit, “Card penetration here is low, informal credit is expensive, and a huge mobile-first population is eager for frictionless financing at checkout. For merchants, BNPL isn’t just a payment option — it’s a conversion tool that drives higher basket sizes.”
He also flagged what he described as the country’s permissive regulatory stance.
“Australian BNPL firms hit ceilings against entrenched card networks, Philippine players are filling a genuine gap in consumer finance. The economics may look familiar, but the context is entirely different.”
About that oversight
Behind all this is the BSP’s regulatory foresight: liberal digital bank licensing, robust inclusion policy, and a well-defined digital payments roadmap. That’s unlocked innovation, competitive lending rates, and banking models combining regulatory compliance with customer-centric value. Digital banks have multiplied – joining Salmon have been Tonik Bank, GoTyme and UNOBank.
Here comes the most exciting punchline—Philippine FinTechs are barreling toward the "EBITDA pivot point". Maya achieved net profit in Q1 and revenues are up fivefold since 2022. PayMongo’s CEO targets breakeven by Q1 2026. Across lending, payments and BNPL, the top players we speak to are either already breaking even or just about to get there.
Why does this matter? Because true profitability unlocks new fundraising avenues. Global and regional investors want operational leverage, not just user numbers. Philippine FinTechs meeting serious EBITDA margins can soon raise bigger rounds or choose to consolidate stragglers in the region from a position of strength. Industry M&A, long forecasted, will be shaped by these Filipino players who now write cheques—not just chase them.
The Stark Regional Contrast & Unmatched Metrics
The Philippines' success becomes even more impressive when contrasted with its regional peers' struggles. Once again, Deal Street Asia / Kickstart Ventures give us the data. Indonesia, long considered the region's FinTech crown jewel, saw no equity deals in any sector above US$10 million in H1 2025 - a dramatic fall from grace for a market that once commanded premium valuations. Singapore, despite maintaining its position as the regional hub, recorded its weakest semester of tech raisings in over six years with deal volume and value both declining significantly.
Even more telling, Vietnam, Thailand, and Malaysia combined failed to match the Philippines' FinTech funding total despite all four having similar sized economies. This represents a fundamental shift in how investors view regional opportunities with the Philippines now clearly established as a top-tier market rather than a secondary consideration.
Looking Ahead: Bubble or Durable Boom?
All this irreverent optimism has substance. The drivers—mobile usage, tech-savvy youth, supportive regulation—point to continued growth. BNPL alone is projected to grow by 235% to 2027 while mobile FinTech penetration targets 72% by 2030.
There’s still work to do: no Philippine FinTech unicorn has yet been created outside the framework of the large conglomerates, and exits are scarce beyond Series B. But KKR’s move to sell Maya at a (possibly optimistic?) >US$2bn valuation could light the spark for the next wave. If exits open, the whole sector could shift up a gear—and melt away the last vestiges of the “sick man’s” reputation.
But you have to be alive to the hurdles and impediments ahead. As Levit says, “The market definitely has some growing up to do, though. Later-stage capital is thin, exits are rare, and too many profitable lenders still run underwriting on Excel. Board-level depth in risk and governance is also patchy; there simply aren’t enough seasoned operators who have scaled regulated financial businesses.”
He says credit bureaus and alternative-data sources are improving but remain limited, which leaves underwriters flying half-blind. And the very regulatory permissiveness that helps attract foreign players today could easily harden if consumer harm mounts. “Investors who enter the Philippines need to price in the cost of professionalising governance and risk systems early — otherwise today’s opportunity quickly becomes tomorrow’s fragility.”
The Philippines’ leap from laggard to leader is real. With significant capital raised, unmatched BNPL adoption, and digital banks and payment platforms moving toward profitability, the ecosystem is set for fireworks: fundraising, industry consolidation, and bold M&A.
As we walk through Bonifacio Global City, no longer dodging manholes, it’s clear—the FinTech phoenix has spread its wings, is breathing fire, and has left the "Sick Man" days behind. Philippines Fintech isn't speculative or fleeting. It's real, and it's happening now.