BayanTrade’s e-payment facility ready by May

BayanTrade, the country’s leading e-marketplace, said its financial services gateway facility for e-payment is undergoing testing and will be available in May.

The facility will offer three gateway options to be provided by Citibank, Bank of the Philippine Islands (BPI), and UnionBank but will allow buyers and sellers on the e-marketplace to utilize their existing banks for immediate e-payment.

BayanTrade, a collaboration among six of the country’s biggest conglomerates – Ayala Corp., PLDT, JG Summit Holdings, Benpres, Aboitiz Equity Ventures and United Laboratories – plans to eventually offer additional financial services to buyers and sellers, including foreign exchange transactions and insurance brokerage.

Four banks associated with BayanTrade’s founding consortium assisted in the final testing and evaluation of the Citibank facility. "Local banks have to be comfortable with the gateway business model, structure and process," said chief technology officer Dante Briones in explaining the bank’s involvement.

Two of those banks, BPI and UnionBank, decided during testing to offer their own gateways as well. The banks involvement in the evaluation were 1st e-Bank, BPI, Robinsons Savings Bank, and UnionBank.

Briones said the bank’s involvement in the evaluation was critical to implementing a payment gateway facility that fits well with Philippine banking and business practice; and therefore provides truly seamless integration with the e-marketplace. He expects all three gateway options to be available to buyers and sellers sometime in May.

Ma. Carmencita A. Sayo, BPI vice president for emerging markets, said her bank’s integration with BayanTrade is for the purpose of creating a showcase demonstrating the rapid adoption of e-technology by Philippine banks and enterprises.

"We expect rapid development and intense interest from among our corporate client base in BayanTrade.com’s e-payment offering," Sayo said.

That sentiment was echoed by other bank representatives present at a recent signing of an agreement between the banks and BayanTrade.com for the evaluation.

"What BayanTrade.com is doing very important for the county. This shows that we are serious, and that there are no borders to Philippine business," Primo B. Aguas, chief information officer of 1st e-Bank, emphasized.

The gateway service will provide buyers and sellers the convenience of preserving existing banking relationships, according to BayanTrade CEO Carol E. Carreon.

"It has been traditional for sellers in the Philippines to open accounts where their buyers bank because of technology limitations that made inter-bank transfers difficult, time consuming, or unreliable. Once we implement e-payment that will all change. Buyers will electronically authorize immediate payment from their banks directly into their suppliers’ banks," Carreon explained.

Other benefits include increased efficiency and security, according to Victor V. Laynes, vice president for information technology at Robinsons Bank. "Payment becomes a seamless transaction based on agreed terms, which should be a welcome development for sellers because they’ll spend less money and time on administration and have better use of their funds. And because the transaction is electronic, it is impossible to lose a check or misplace a payment," he said.

Hermie M. Pugeda, senior vice president of UnionBank, said that the relationship with BayanTrade is an extension of the bank’s existing focus on Internet Banking. "We were the first bank to breakthrough corporate cash management services on the web. "Our involvement in this exercise will ensure our first-mover advantage in e-settlement."

According to Larry Chew, UnionBank’s vice president for electronic commerce B2B, the bank is already practicing e-management, adding that they are moving to be a paperless bank, making them well-suited to assist BayanTrade in its evaluation.