Dragonpay provides non-credit card online payment solutions to consumers and businesses

Country: Philippines
Date of Launch: 2010

Founded in 2010, Dragonpay focuses on servicing the population of the Philippines who don’t have access to credit cards by allowing them to connect to the world of e-commerce in an easy and innovative way.


  • Dragonpay’s solution helps consumers engage in e-commerce transactions without the need of a credit card. Dragonpay allows its users to pay via payment methods such as cash at bank branches and convenience stores, ATMs, and online bank debit.
  • For e-commerce businesses and merchants with online presence, Dragonpay provides additional payment channels.
  • The company’s revenue model is based on the fees charged to merchants and businesses that provide Dragonpay payment solutions to their customers. The company charges a fixed fee per transaction based on the following three payment channels:
    • Online Banking involves online payments made through internet banking facilities of any bank account. Dragonpay charges a fee of PHP 10 or USD 0.212 for such transactions.
    • OTC Banking involves making payments in any of the branches of Dragonpay’s partnered banks. The company charges a fee of PHP 15 or USD 0.320 for such transactions.
    • OTC Non-Banks involves making payments in the branches of Dragonpay’s partnered non-bank outlets such as convenience stores and supermarkets. The company charges a fee of PHP 20 or USD 0.427 for such transactions.
  • For businesses that sell low price products (PHP 200 or below), the company has a micro-payment fee schedule that consists of a 5% charge on the total transaction amount. This plan also involves a one-time setup fee of PHP 28,000 or USD 598.2.
  • Facts and figures:
    • Japan based GMO Global Payment fund, which is the venture capital arm of GMO Payment Gateway (TYO:3769), invested an undisclosed amount in the series-A funding of the company.
    • The company’s partner network spans to 10,000+ physical locations that accept its OTC cash payments. These partner locations range from convenience stores and gas stations to pawnshops and remittance centers.

Consumer Benefits

  • For consumers, Dragonpay offers the following key benefits:
    • Convenience and accessibility: Given the low credit card penetration rate in the Philippines, the Dragonpay service empowers a wider population segment to experience the world of e-commerce. Additionally, for consumers with credit cards, Dragonpay provides users with an expanded set of payment channels to conduct e-commerce transactions in their preferred way.
    • Cost: Dragonpay service is entirely free of cost for buyers.
  • For e-commerce companies and other businesses with online presence, the Dragonpay service provides the following key benefits:
    • Accessibility: Given the low credit card penetration rate, Dragaonpay could be a potential tool for businesses to expand their customer base and access an untapped market segment, which consists of a customer base without credit cards. Dragonpay estimates this non-credit card population segment at 95% of the country’s 100+ million population.
    • Cost: The company charges businesses a lower fee than the traditional online payment systems such as credit cards and PayPal. The traditional online payment providers charge a total fee consisting of a variable component, which is a certain percentage of the total transaction amount, plus a fixed fee portion, whereas Dragonpay only charges a simple flat fee.

How it works

The chart and the video presented below illustrate the process of Dragonpay’s online payment solution:
how it works


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