BSP Names PESONet, InstaPay as Prominently Important Payment Systemsby Fintech News Philippines July 15, 2022
The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board has named PESONet and InstaPay as Prominently Important Payment Systems (PIPS) pursuant to the National Payment Systems Act (NPSA).
PESONet and InstaPay are digital payment schemes launched in 2017-2018 under the National Retail Payment System.
The designation of PESONet and InstaPay as PIPS would subject them to closer BSP supervision and monitoring to protect the public.
The two payment systems are expected to comply with international standards that foster safe, efficient, and reliable operations.
PESONet is a batch electronic fund transfer service and is a viable alternative for checks and recurring payments.
Meanwhile, InstaPay is a real-time, low-value payment substitute for cash transactions.
PESONet and InstaPay are operated by the Philippine Clearing House Corporation and BancNet respectively.
Under the Payment System Oversight Framework, PIPS refers to a payment system which may not trigger or transmit systemic risk, but could potentially cause adverse economic impacts or undermine the confidence of the public in the national payment system or in the circulation of money.
“The designation of PESONet and InstaPay as PIPS is considered timely, as these payment systems will facilitate the launch of other use cases for digital transactions, such as interoperable bills payments and direct debits.
This further promotes consumer welfare as we continue making progress toward the BSP’s objective of reaching 50% digital payments by 2023,”
said Felipe M. Medalla, Governor of BSP.