E-payment transactions in PH now at 30% – BSP
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Wed, 20 Nov 2019 13:00:13 +0000
THE share of electronic payments (e-payments) to total retail payment transactions in the Philippines has exceeded the central bank’s target, according to its head.
“My guess is we are already at 30 percent now,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said during a briefing on Wednesday.
To recall, the BSP wants to increase e-payments in the country to 20 percent of total transactions by 2020 from 1 percent, based on a 2013 country diagnostics made by the Better Than Cash Alliance.
That said, Diokno announced that the central bank is aiming to reach “30 percent” of such transactions “by 2020.”
The Bangko Sentral chief’s optimism also took into consideration another set of initiatives under the National Retail Payment System (NRPS) — the Government e-Payments, or EGov Pay, Facility and the pilot of the first-use case aligned with the National QR Code Standard, or QR Ph.
The initiatives were launched also on Wednesday by payment industry participants, led by the Philippine Payments Management Inc. (PPMI).
EGov Pay is a payment solution that enables a streamlined digitalization of government collections and disbursements.
“By digitalizing payments to the government, it is able to curb revenue leaks through efficient collection means, better audit trail, and enhanced transparency,” the central bank explained.
“On the disbursement side, digital payment services help the government to promptly deliver social services through the quick and safe means of disbursement or paying out of funds to concerned stakeholders,” it said.
With the full launch of this facility, the BSP expects more government agencies to leverage on the efficiencies of e-payments by participating as billers, thus allowing more Filipinos to experience a secure, fast and convenient way of electronically paying the government.
“I am confident that by 2023, if we all work together, we will have a 100 percent coverage (for all government agencies and local governments). That is a promise,” Diokno said.
As of launch date, the Bureau of Internal Revenue, Department of Trade and Industry; city governments of Quezon, Manila, Valenzuela, General Santos, and San Pedro in Laguna province; local government unit of Baler in Aurora province; and Philippine National Police have joined the facility.
Also highlighted was the pilot launch of the first payment use case developed by the payment industry that is aligned with the QR Ph.
Pilot participants — Asia United Bank, China Banking Corp. Land Bank of the Philippines, Rizal Commercial Banking Corp. PayMaya and Union Bank of the Philippines — demonstrated how secure and easy transfer of funds are by scanning the QR code.
The funds are transferred through InstaPay, the real-time low value automated clearing house under the NRPS.
“The QR is primarily intended to enable micro-merchants to accept electronic payments,” Diokno said.
“We hope that through the help of our industry partners, we can not only achieve our goal of a cash-lite economy but also enable more Filipinos to reap the benefits of a growing economy,” he added.