Manila Bulletin reported that the Philippines is progressing with its integration into Project Nexus, a multilateral network designed to connect domestic instant payment systems.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto Tangonan confirmed the country is moving forward, having hired key executives and established a Singapore-based operating company.

“They are now running it, and we’ve selected a technology operator, so the platform is currently being built,” Tangonan stated, noting a mid-2027 target for full onboarding.

The initiative, led by the Bank for International Settlements, will link the Philippine InstaPay platform with fast payment systems in Singapore, Malaysia, Thailand, India, and Indonesia.

This standardised network aims to replace complex bilateral agreements to facilitate rapid, low-cost cross-border transfers.

Domestically, electronic fund transfers through InstaPay and PESONet surged by 42% to reach PHP 24.74 trillion in 2025, representing roughly 90% of the Philippine gross domestic product.

By 2024, digital transactions already account for 57.4% of total retail payments, exceeding government targets.

Despite this growth, BSP Governor Eli M. Remolona Jr. cautioned that cyber threats could slow the transition to a fully digital landscape.

“Even as we continue to encourage digitalisation, we are also pushing banks to ensure they are defending themselves against cyber threats,” Remolona warned.

Whilst the government aims for 70% digital payment adoption by 2028, security concerns remain a primary hurdle to overcome.

Featured image: Edited by Fintech News Philippines based on an image by ismode via Freepik.