Smart and Landbank launch pioneering payment service

CEBU, Philippines - Smart Communications, Inc. (Smart) achieves another global breakthrough with a new service that enables people to pay their mandatory contributions for social security, housing, provident and health insurance using load on their mobile phones.

BayadLoad, a world-first and the newest innovation in the e-money space, will initially address the urgent need of an estimated 1.8 million employers and 2.5 million domestic service workers to comply with Republic Act No. 10361 otherwise known as the Kasambahay Law, which took effect last June 4.  It can also be used by over 10 million self-employed individuals who are making voluntary contributions to the Social Security System, Philippine Health Insurance Corp. and Home Development Mutual Fund also known as Pag-IBIG Fund.

The Kasambahay Law is a landmark piece of labor and social legislation that gives domestic service workers the same security benefits given to those in the formal sector.

It was enacted to protect and promote the welfare of household workers. It requires, among others, that a kasambahay who has rendered at least one month of service have SSS, Pag-IBIG and PhilHealth coverage.

BayadLoad is an e-money platform that allows mobile phone subscribers of Smart, Talk N Text and Sun Cellular —be it the kasambahay or the employer—to pay conveniently and securely premiums to SSS and PhilHealth, and contributions to Pag-IBIG Fund via the mobile phone, saving them a lot of time and expense plus the inconvenience of queuing at the branches of these agencies, in banks or other payment centers.

This service was approved by the Monetary Board, the highest policy-making body of the Bangko Sentral ng Pilipinas, on June 6 by virtue of the electronic money issuer (EMI) license granted to Smart subsidiary, Smart Hub, Inc.

“Necessity is the mother of invention. BayadLoad is the answer to a smoother implementation of the Kasambahay Law. It’s as easy as buying load and it can work even with the most affordable basic phones in the market,” said PLDT Group chairman Manuel V. Pangilinan.

 Developed by Smart subsidiaries, Smart Hub and Voyager Innovations, BayadLoad is a separate wallet or bucket linked to a mobile phone but unlike airtime load, it has no expiry and cannot be withdrawn in cash. It can only be redeemed for payment to an identified payee, in this case, SSS, Pag-IBIG and PhilHealth.

Initial users have to register via their mobile phones their SSS, PhilHealth and Pag-IBIG accounts to avail of the service. An SMS notification will be sent to both the employer and the kasambahay once payment has been transmitted to Land Bank of the Philippines, the government’s official depository bank, which will handle all settlement and reconciliation processes and credit all payments made to each covered government agency.  The service will initially be available to Smart, Talk N Text and Sun Cellular subscribers by July 1.

“LANDBANK is proud to be Smart's strategic partner in making financial inclusion truly a reality by enabling its massive distribution network of over one million retailers nationwide as conduits in reloading the BayadLoad wallets of their more than 70 million subscribers. It is just like bringing government service at the sari-sari store level and more at the fingertips of the mobile users—truly transformative and viral,” said Gilda Pico, LANDBANK president and CEO. (FREEMAN)