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June 23, 2024

BSP, banks to boost digitalization via 3 new e-payment streams

The Bangko Sentral ng Pilipinas (BSP), banks, and financial institutions are further boosting digital adoption in the country via the launch of three electronic payment streams.

During the recent Eastern Communications E-Huddle webinar, BSP Governor Benjamin Diokno said the central bank and the Philippine Payments Management Inc. (PPMI) will launch Bills Pay, Request to Pay, and Direct Debit facilities.

Bills Pay seeks to improve the existing fragmented bills payment mechanism for retail customers. This will allow them to pay their electricity, water, and telephone bills even if the accounts of the customer and the biller are with different banks or other financial institutions.

Request to Pay aims to empower payees to initiate collections by sending a “request to pay” to the payor without the need to provide the account details or the amount. The payor only needs to authorize the collection instruction (by clicking on “approve”, for example) from the payee.

Direct Debit allows customers to better manage recurring payments such as monthly rentals, amortizations, insurance, among others, by simply authorizing the billers to pull funds from the account of payors.

Under the BSP Digital Payments Transformation Roadmap, the BSP aims to convert half of the volume of retail payments in the country into electronic channels by 2023.

It also intends to onboard 70 percent of Filipino adults onto the formal financial system by 2023.

The PPMI is a key BSP partner and is an industry-led self-governing body that is accredited and overseen by the BSP as a Payment System Management Body in accordance with the National Payment Systems Act.