PhilPaSS transactions up 8.5%

MANILA, Philippines - The Bangko Sentral ng Pilipinas said the number of transactions that passed through its payments and settlements system continued to increase in the third quarter.

Central bank data showed the volume of Philippine Payments and Settlements System (PhilPaSS) transactions grew 8.5 percent to 349,670 in the third quarter from 322,324 in the second quarter.

“The uptick in the number of transactions was due to the quarter on quarter increase in... OF (overseas Filipinos) remittances coursed through the REMIT system, interbank sale and purchase of foreign currency via payment-versus-payment, and interbank transactions,” the BSP said.

The current figure is also three percent higher than the 339,543 in the third quarter of last year.

PhilPaSS is a gross settlement system that processes and transfers funds in real time. The system takes care of high-value payments between banks through their accounts with the BSP.

Uses of the system include the settlement of overseas Filipinos’ remittances, fund transfers and loan transaction between banks, sale and purchase of government securities, and even foreign exchange-denominated transactions.

BSP data showed that the value of transactions, slid by 2.1 percent to P82.2 trillion in the third quarter from P84 trillion in the second quarter.

“The overall decrease in the total transaction value was due to the quarter on quarter decline in ... interbank transactions and RP (repurchase facility), RRP (reverse repurchase), SDA (Special Deposit Account) maturities transactions,” the central bank said.

The latest level is also 1.5 percent lower than the P83.5 trillion seen in the third quarter a year ago.

“The BSP... remains proactive in ensuring the credibility of the payments and settlements system with the continued enhancement of its processes in accordance with international best practices and development of the necessary infrastructure through the operation of the Philippines’ real time gross settlement system or the PhilPaSS,” the central bank stressed.

During the third quarter, the BSP raked in revenues of P37.8 million from PhilPaSS operations, up 7.6 percent from the P35.2 million recorded in the previous quarter. However, this is 1.5 percent below the P38.4 million seen in the same period in 2013.