BSP pursues phased digital transformation

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    The Bangko Sentral ng Pilipinas (BSP) pursues a phased digital transformation wherein the country will transition from a cash-heavy, to cash-lite, and eventually, to a coinless and cashless society.

    “The BSP expects the transition to gather pace amid the rise in electronic payments during the COVID-19 pandemic. In view of this, the BSP will continue to engage the public to ensure that Filipinos will adjust well to this transformation,” said BSP Governor Benjamin Diokno.

    As physical distancing and quarantine protocols catalyzed the use of digital payments, PESONet and InstaPay transactions also reached record highs last year.

    In 2020, the volume of PESONet transfers surged to 15.3 million, up by 376 percent year-on-year.

    The value of PESONet transactions, meanwhile, rose by 188 percent year-on-year to reach P951.6 billion.

    During the same period, payments made through InstaPay reached 86.7 million, up by 459 percent.

    Said transactions were valued at P463.4 billion, which was a 340 percent increase. Likewise, coin demand in 2020 fell by 57 percent in volume and 60 percent in value compared to 2019.

    While softer economic activity may have partly led to the drop, broadening access to safe and convenient e-payment options may have also contributed to the decline in coin demand.

    The BSP and the industry led by the Philippine Payments Management, Inc. are continuously collaborating to develop more avenues on safe and efficient digital payments.

    The BSP also intensified its information campaign on cybersecurity and the responsible use of e-payments to further promote confidence in said innovative systems.

    “As we journey towards a cashless and coinless society, the BSP remains committed to ensuring that no Filipino is left behind in its pursuit of inclusive economic growth,” Diokno added.