BancNet, PCHC merger gets SEC, BSP approval

MANILA, Philippines — Regulators have approved the merger of BancNet Inc. and the Philippine Clearing House Corp. (PCHC), paving the way for a unified payments network that is expected to strengthen the country’s digital payments infrastructure.

In a joint statement, BancNet and PCHC said the Securities and Exchange Commission approved their merger, with BancNet as the surviving entity.

The Bangko Sentral ng Pilipinas (BSP) had also authorized the transaction earlier this year.

BancNet began operating under its new corporate name, Payments Network of the Philippines Inc. (PNPI), on June 1. The BancNet name is being retained as the brand for PNPI’s automated teller machine network, while PCHC continues to be used for check clearing operations.

The merger brings together two of the country’s major payment and clearing switch operators, which handle key retail payment channels used by banks, financial institutions, businesses and consumers.

BancNet and PCHC are both identified by the BSP as Operators of Designated Payment Systems under the National Retail Payments System. BancNet operates InstaPay, while PCHC handles PESONet, the Philippine Domestic Dollar Transfer System and Payment-versus-Payment.

The companies said the consolidation is expected to improve operating efficiency, promote greater interoperability and support faster innovation in digital payments.

“The merger represents a transformative step toward a more integrated and future-ready national payments system,” BancNet chairman Nestor Tan said.

“By combining the strengths and expertise of BancNet and PCHC, PNPI will be in a stronger position to support BSP’s digital payments transformation agenda for the country and deliver greater value to banks and other financial institutions, businesses and consumers,” he said.

The merger comes as the BSP continues to push for a more digital, inclusive and efficient payments ecosystem.

The central bank has been encouraging greater use of electronic payments to reduce reliance on cash, lower transaction costs and broaden access to financial services.

PCHC chairman Joseph Gotuaco said PNPI would support the continued safe and efficient processing of payment transactions and clearing services.

“PNPI will enhance the safe, reliable and efficient processing of electronic payment transactions and clearing services that are vital to the country’s financial system and our broader economy,” Gotuaco said.

“PNPI will continue to work closely with regulators, participating financial institutions, and industry stakeholders in advancing secure, inclusive, and interoperable payment systems for the Philippines,” he said.

The companies said more details on the transition and integration initiatives would be announced in due course.