The Philippine startup ecosystem continues to be dominated by fintech, which leads in scale, funding, and growth. Despite significant progress in digital payments, key opportunities remain, particularly in person-to-government (P2G) payments, remittance-linked financial services, and MSME-focused fintech solutions, according to a recent report by Gobi Partners, an Asia-focused venture capital firm.
The report, released in November 2025, examines developments in the Philippine startup ecosystem, emerging trends, and areas with growth potential. It draws on publicly available data from Pitchbook, Dealroom, and CB Insights, press announcements, and a survey of startup founders with at least one year of operations and prior equity or grant funding.
Digital Payments and B2B Opportunities
Digital payments have surged in the Philippines, now accounting for the majority of retail transactions. Bangko Sentral ng Pilipinas (BSP) reports that digital retail payments made up 57.4% of transaction volume and 59% of transaction value in 2024, surpassing national targets.
While B2B payments remain modest at 6.2% of digital volumes, they represent a significant growth opportunity. Digitising invoicing, supplier payments, and reconciliation can unlock financial products such as invoice financing and dynamic discounting, offering higher revenue per user and improved risk management for providers.
Person-to-Government (P2G) Payments
The report highlights substantial potential in P2G payments, including tax, permit, and fee payments, which were only 24.6% digitalized in 2024. In contrast, 97.2% of disbursements were already digital, indicating a strong untapped market. Payment service providers (PSPs) offering certified gateways, QR PH acceptance, payer identity matching, and agency-grade reconciliation are well positioned to capture this segment.
Remittances and Financial Services
The Philippines received a record US$38.34 billion in personal remittances in 2024, with US$34.49 billion through banks. Digital remittances, however, still represent a small share, highlighting opportunities for fintech companies to offer savings, bill payment, and credit products linked to recurring remittance inflows. Automating these services can improve retention and reduce delinquency rates by aligning repayment with cashflow.
Fintech Leadership in Startups
A survey conducted as part of the Gobi Partners report with local edtech startup Eskwelabs shows that most Philippine startup founders are building fintech solutions, underscoring the sector’s dominance.
Most startups operate under a B2B model (54%), with business-to-consumer (B2C) at 19% and consumer-to-consumer (C2C) limited to 3%, reflecting strong demand from enterprises and government agencies for digital transformation solutions.
Although fintech leads in scale and funding, the sector’s average revenue remains below US$3 million, compared to US$45 million in e-commerce and US$9.6 million in food and beverage, indicating early-stage growth potential.
Support Systems and Global Ambitions
Incubators and accelerators are key enablers in the ecosystem, with 56.9% of founders participating in at least one program. Local programs by the Department of Science and Technology (DOST), Department of Information and Communications Technology (DICT), and QBO Innovation are most popular.
A growing number of startups are expanding abroad—35.4% have already ventured internationally, while 29.3% plan to do so, reflecting strong regional and global ambitions. Domestic consolidation remains a priority for others due to resource constraints or market readiness.
Overall, Philippine fintech remains a backbone of the startup ecosystem, driving innovation, digital transformation, and financial inclusion, with enormous potential in P2G, remittances, and MSME services.