BSP gives nod to 8 more payment system operators

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has granted provisional certificates of registration to eight more operators of payment systems as the government ramps up the country’s transformation to a cash-lite economy.

Given the green light to operate payment systems this month were Euronet Technology Services Inc., Primepay Inc., Philippine Clearing House Corp., Pay Myeg Philippines Inc., Molpay Philippines Inc. GPay Network PH Inc., Microbitz Solutions Inc., and AltPayNet Corp.

This brings to 18 the number of registered operators of payments systems since the regulator issued the registration guidelines through Circular No. 1049 last Sept. 5.

Last month, 10 companies, including the BSP Payments and Settlements Office, Philippine Savings Bank, Asiapay Payment Technology Corp., Action.able Inc., Rural Bank of Balabag Inc., Xenpay Inc., Electronic Commerce Payments Inc., Skybridge Payment Inc., Paynet International Technology Inc. and Equicom Savings Bank Inc. were issued provisional certificates of registration.

The circular is a product of extensive consultations among private and public stakeholders in the payments industry, and is part of the phased-in implementation of the Republic Act 11127 or the National Payment Systems Act approved by President Duterte that prioritizes the creation of a baseline inventory of all operators of payment systems.

The inventory will be used as inputs in the crafting of rules and criteria for designating payment systems.

“The BSP recognizes the crucial role of payment systems in maintaining a stable financial system and facilitating the realization of monetary policy objectives. It is thus important for the operation of payment systems to be safe, efficient and reliable,” the BSP stated in the circular.

Operators of payment systems include those that maintain platforms that enable payments or fund transfers, regardless of whether the source and destination accounts are maintained with the same or different institutions as well as those that operate the system or network that enables payments or fund transfers to be made through the use of a payment instrument.

Likewise, companies that provide a system that processes payments on behalf of any person or the government are required to register with the BSP.

New operators of payment systems are required to file an application for registration with the BSP and at the same time submit a business plan as well as copies of their business registrations and permits.

In keeping with the thrust of the BSP to promote ease of doing business, the circular also provides a simplified registration process through self-assessment, streamlined list of documentary requirements, and descriptive examples-albeit not exhaustive-of activities that are akin to operating a payment system.

The BSP launched the National Retail Payment System (NRPS) in December 2015 in its bid to raise the share of cashless transactions to 20 percent by 2020 from the previous level of only one percent.