Philippines needs a well-placed e-payment system – BSP

CEBU, Philippines – A central bank official said consultations with industry players will continue to establish and boost the country's electronic payment system, which is deemed vital in expanding financial inclusion.

Bangko Sentral ng Pilipinas Deputy Governor Nestor Espenilla Jr. said the country aims to beef up its National Retail Payments System (NRPS) that promotes electronic payments in the country.

In a media briefing in Cebu during the recently concluded finance ministers meeting of Asia-Pacific Economic Cooperation, Espenilla explained the use of electronic money as essential in improving financial inclusion as well as efficiency in the financial system.

One of the significant developments relating to the goal of having NRPS, Espenilla said, is the merger of BancNet and Megalink, the country's major automated teller machine networks.

The BSP official acknowledged that one important factor in realizing an effective payments system is good governance which should allow industry players to cooperate with one another and identify key areas that need innovation.

He said the Bangko Sentral wants the NRPS to be largely self-governed by players because if the government takes the lead, it might discourage innovations.

The NRPS also seeks for efficiency in the way people pay and settle financial transactions through the usage of electronic forms of payment.

In a study done by Better Than Cash Alliance (BTCA) cited recently by BSP, it said that Filipinos undertake 2.5 billion payment transactions a month worth US$74 billion. Of the total amount, only 1% is done electronically and the rest are done through cash or check.

Officials believe digitization of payments should help enhance financial stability and expand financial inclusion in the country.