To enhance financial inclusion, the Bangko Sentral ng Pilipinas (BSP) is actively promoting the adoption of cashless transactions. The effort is said to be directed towards local government units (LGUs). According to BSP Deputy Director Maria Christina Masangkay, digital payments provide widespread benefits to communities.

The BSP, in partnership with the Department of Interior and Local Government (DILG), issued Joint Memorandum Circular 1-2022, which outlines guidelines for LGUs to participate in the Paleng-QR PH programme.

This initiative by BSP, launched in 2019, facilitates direct cashless transactions between individuals and merchants, particularly in public markets and transport.

“QR PH is the national QR code standard that allows fast, low-cost methods to pay, transfer and get funds from other banks and electronic money (e-money) accounts in the country,” Maria explained to the media.

The BSP has been working to expand financial access by regulating systems that allow unbanked individuals to open accounts and utilise digital payments methods. This includes facilitating basic deposit accounts, e-money services, and enabling cash agents.

Currently, the adoption of the Paleng-QR PH programme remains limited. Only 14 LGUs in Central Visayas, including Tagbilaran City in Bohol, participated. Joint Memorandum Circular 1 empowers LGUs to enact ordinances that mandate the use of QR Ph-enabled digital payments in public markets and transport.

The programme also requires vendors and transport operators to display QR codes for digital payments. Participating establishments will feature Paleng-QR Ph signage. LGUs, in collaboration with financial service providers, will assist small businesses and individuals in opening QR Ph-compatible accounts.

The QR PH system adheres to the globally recognised EMV payment security standards.

Featured image credit: Edited from Freepik.