Digital payments pushed to modernize government transactions, boost transparency

MANILA, Philippines — Swift approval is being sought for a House measure aiming to promote the adoption of digital payments for financial transactions of the government and merchants.

Rep. Juan Carlos Atayde (1st District, Quezon City) said House Bill No. 5489 is seen as part of efforts to improve governance, efficiency and financial inclusion.

The lawmaker stressed that the Philippines is at a defining moment in its economic transformation, with more Filipinos embracing digital financial services.

Citing data from the Bangko Sentral ng Pilipinas, he pointed out that digital retail payments now account for 57.4% of total transaction volume in the country, reflecting the public’s growing preference for faster, safe and more convenient modes of payment.

“Digitalization is not just about convenience; it’s about accountability,” Atayde said.

"Digital transactions are recorded, traceable, and transparent. They strengthen public confidence in government institutions,” he added.

Despite the rapid growth of digital payments, Atayde said a significant portion of government collections, disbursements, and private commercial exchanges remains heavily dependent on cash-based systems. This reliance, according to him, slows down service delivery, increases administrative burdens, exposes transactions to potential leakages, and limits financial inclusion — particularly in remote and underserved areas.

The bill, the lawmaker added, seeks to address these gaps by establishing a clearer institutional framework for accessibility, interoperability, and consumer protection in digital financial transactions. It also emphasizes the need to strengthen internet accessibility to ensure that digital transformation benefits all sectors, including small merchants and marginalized communities.

Atayde stressed that the bill is designed to be inclusive and forward-looking, recognizing that modernization efforts must not leave behind the smallest players in the economy.

“The Philippines is a young, tech-savvy nation with immense potential,” he said. 

“By passing this measure, we modernize our payment systems, strengthen governance, deepen financial inclusion, and accelerate our journey toward a digitally empowered, innovation-driven economy.” (Contributed story)