BSP signs measures to expand e-commerce in the Philippines

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. has signed measures enabling the e-commerce sector to accommodate more consumers and serve more payment transactions across the country.

The central bank has signed the Charter of the Payment System Management Body (PSMB), as well as the Expression of Interest to establish and activate two new measures of the Automate Clearing Houses (ACHs), the BSP said Wednesday.

"The PSMB is a critical and unique entity that will serve as a strong foundation of a modern, digital retail payment system in the Philippines," Tetangco said in a speech on March 31, 2017, the transcript of which was emailed to reporters on Wednesday.

"It is industry-led, bringing together and organizing all direct clearing participants in all important retail payment systems, into a self-governing body that will assist the BSP in overseeing the national payments system," the BSP chief noted.

The BSP also signed the Expression of Interest to establish and activate the year-two specific ACHs measures PESO Net and InstaPay.

"The PESO Net supports bulk payment transactions of various users. For instance, it will enable companies, including the government, to conveniently pay salaries and invoices to the bank account of choice of their employees and suppliers," Tetangco said.

"Employees and suppliers will therefore no longer be compelled to open and manage several accounts just so they can receive and make payments affordably," he added.

Peso Net is an electronic fund transfer credit payment scheme that would serve as alternative to paper-based check system.

InstaPay will enable merchants to accept digital payments from both e-money and bank accounts even without a point-of-sale (POS).

"By using digital payments, MSMEs (micro, small, and medium enterprises) will be able to build a rich digital transaction history which can help establish their creditworthiness," Tetangco said.

Tetangco noted the InstaPay program will also provide MSMEs access to credit from formal lending institutions at a price that reflects their risk profile.

"These concrete developments mark a significant milestone in our journey towards modernizing the retail payment system in the country," he said. — Jon Viktor Cabuenas/VDS, GMA News