THE Bangko Sentral ng Pilipinas (BSP) highlighted the need for accessible, convenient and secure e-payment services amidst the COVID-19 pandemic.
Benjamin Diokno, BSP Governor, noted the importance of shifting consumer behavior toward e-payments, considering the limitations on people’s movement and activities during the enhanced community quarantine (ECQ).
Diokno said e-payment services allow individuals and organizations to easily transfer money from their accounts to any recipient account with any participating financial institution around the country.
They can do this within the comfort of their homes through online banking, mobile apps and e-wallets, using any digital device with internet connection.
By using e-payments with due care and vigilance, Filipinos reduce their need for mobility and prevent health risks from face-to-face and over-the-counter financial transactions.
BSP’s comparative data before and during the ECQ showed significant decline in the volume and value of check payments and ATM withdrawals.
Diokno said this downtrend reflects the effect of the ECQ on the check-based and cash-based financial transactions of businesses, households, and individuals.
“These data indicate a clear opportunity for digital payment channels and services, such as PESONet and InstaPay,” Diokno said.
PESONet and InstaPay are electronic funds transfer (EFT) services offered by BSP-supervised financial institutions for their account holders.
Fees for these services have in fact been waived for the duration of the ECQ period.
PESONet is appropriate for high-value transactions of companies, other businesses, government entities, and individuals while InstaPay is used for urgent and small-value retail transactions.
These EFT mechanisms were established under the National Retail Payment System, a policy framework issued by the BSP in 2017 to provide an enabling environment for a safe, efficient, affordable and inclusive digital finance ecosystem.
Studies show that the volume of e-payment transactions in the Philippines grew from 1 percent in 2013 to 10 percent in 2018.
The value of these e-payments also rose from 8 percent to 20 percent over the same period. The BSP envisions accelerated uptake of e-payment services in the Philippines over the next three years.
Meanwhile, to encourage BSP Supervised Financial Institutions (BSFIs) to actively offer safe, efficient, and reliable digital channels, the Monetary Board approved the suspension of charging of filing, processing, and licensing/registration fees relative to application to provide electronic payment and financial services (EPFS) as an additional relief to BSFIs affected by the Corona Virus Disease 2019 (COVID-19) situation.
Digital channels such as online banking facilities and electronic money platforms–that support critical payment use cases such as social benefit transfers, payments to merchants or billers including the Government, payments to suppliers, and remittances–have enabled continued access to basic financial services and minimized the physical presence of clients at BSFI premises.
This effectively contributes to the physical distancing measures implemented by the Government during this Luzon-wide, enhanced community quarantine (ECQ) period to help curb the spread of COVID-19.
The relief shall be effective for a period of six (6) months from March 2020, the date of declaration of the President of the state of public health emergency under Presidential Proclamation No. 922.
This period may be extended depending on the development of the COVID-19 situation.
