Blockchain Payments

BSP Lauds Rise in Digital Payment Technology in the Philippines

The Bangko Sentral ng Pilipinas (BSP) has reported on the ongoing expansion of digital payment technologies, noting their significant role in enhancing the delivery of financial services to unbanked populations and micro, small, and medium enterprises (MSMEs). This development is attributed to the execution of the BSP’s 2020-2023 Digital Payments Transformation Roadmap (DPTR), with contributions from both the public and private sectors.

Mamerto E. Tangonan

Deputy Governor Mamerto Tangonan remarked on the growth from a 1% share of digital transactions in total retail payments in 2013 to a 42.1% share in 2022, suggesting that the target of 50% could have been met by the end of 2023. Such growth illustrates the impact of digital payments transformations at the grassroots level, according to the central bank.

The BSP, in collaboration with the Philippines’ Department of the Interior and Local Government (DILG), introduced Paleng-QR Ph Plus in 2022, aiming to promote digital payments in various commercial venues via QR Ph, thereby offering a secure and convenient transaction method. Additionally, Deputy Governor Bernadette Romulo-Puyat further highlighted the advantages of digital payments for financial management and inclusion.

The initiative of Paleng-QR Ph Plus is part of a broader goal to digitalise half of the country’s retail payments volume and include 70% of Filipino adults in the formal financial system as outlined in the BSP’s roadmap. This is aligned with the National Strategy for Financial Inclusion 2022-2028, focused on enhancing financial inclusivity.

Beyond Paleng-QR Ph Plus, the BSP has introduced Bills Pay Ph, aiming to simplify the bill payment process nationwide. The BSP is also preparing for the next stage of digital payment evolution with its 2024-2026 roadmap.

Futhermore, inudstry experts like Arlone Abello from the Innovative Movement of the Philippine Association of Crypto Traders (IMPACT) and Jay Ricky Villarante from Moneybees have commented on the sustainability of digital payment growth, citing the importance of blockchain technology in fostering a secure, efficient, and inclusive financial environment. They also highlight the use of blockchain for better interoperability among banks and stress the need for a clearer regulatory framework to support the responsible adoption of digital assets and technology.

Featured image credit: Edited from Freepik