The Bangko Sentral ng Pilipinas (BSP) is set to introduce its Request to Pay (RTP) and Direct Debit facilities this year and next to advance the adoption of digital payments in the Philippines.
BSP Deputy Governor Mamerto Tangonan, in a recent press briefing, announced that the central bank aims to launch the RTP Cash-in Service in the latter half of this year. This service will enable e-money users to top up their accounts using any bank or e-wallet platforms seamlessly.
Deputy Governor Tangonan also revealed plans for a second RTP use-case for e-commerce, scheduled for release next year. He noted that online payments can be frustrating when an e-commerce site supports only certain payment service providers. The RTP for e-commerce is intended to make such transactions fully interoperable.
The 2023 Report on E-payments Measurement in the Philippines highlights that digital payments accounted for 52.8% of total retail transactions last year, up from 42.1% in 2022. This increase is attributed to the widespread adoption of online merchant transactions, person-to-person remittances, and supplier payments by businesses.
The Deputy Governor emphasised that supplier payments and person-to-business payments form a significant part of the total retail payments transaction volume, and enhancing their convenience and efficiency will encourage more businesses to adopt digital payments.
The RTP facility will empower payees to initiate collections by sending a “request to pay” to the payer, rather than issuing an invoice. This system will grant businesses and consumers better control over their outgoing payments and improve visibility over their cash flow.
It will also enhance the efficiency of person-to-business and business-to-business transactions, including payments for goods, services, bills, and utilities.
In December 2023, the BSP soft-launched the InstaPay RTP cash-in service, enabling users to fund their accounts or e-wallets by sending a request for funds to the originating financial institution while using the digital platform of the receiving financial institution.
This initiative expanded the network of cash-in services beyond existing bilateral agreements among financial institutions, thereby increasing digital payments usage and reducing barriers to adoption.
Additionally, Deputy Governor Tangonan mentioned that the BSP is collaborating with the industry to pilot the Direct Debit facility this year. Technical working group discussions and alignment of technical specifications and standards with prospective participants are in progress.
The Direct Debit facility will allow customers to manage recurring payments, such as monthly rentals, loan amortisations, and insurance premiums, by authorising billers to pull funds from their accounts.
Featured image credit: Edited from Freepik
