Working toward a cash-lite economy

Through InstaPay and PESONet

TO INCREASE retail electronic payment transactions to twenty percent (20%) by 2020 and ultimately improve the country’s economic competitiveness, the Bangko Sentral ng Pilipinas ( BSP), together with industry stakeholders, launched the National Retail Payment System (NRPS) Framework on Dec. 9, 2015. The NRPS is a flagship BSP program that aims to create a safe, efficient, reliable, interconnected and interoperable electronic retail payment system.

To assist the BSP in overseeing the national payments system, an industry-led, selfgoverning body of direct clearing participants called the Payment System Management Body or PSMB was created on March 31, 2017.

During Governor Nestor A. Espenilla, Jr.’s first year as BSP Governor, implementation of the NRPS was effected through the launch of two specific Automated Clearing Houses (ACHs) — PESONet on Nov. 8, 2017 and InstaPay on April 23, 2018.

Both ACHs will immediately provide digital payment solutions to the current payment challenges encountered by government, businesses and ordinary consumers.

The Philippine EFT System and Operations Network or “PESONet” is a batch electronic fund transfer credit payment scheme which supports bulk payment transactions of various users. For instance, companies (including the government) will be able to conveniently pay salaries and invoices directly to the bank account of choice of their employees and suppliers. There will be no more need for employees and suppliers to maintain several accounts (such as payroll accounts) to receive and make payments affordably.

Through PESONet, funds can be received by recipient account/s in full within the same banking day or immediately upon clearing. For greater transparency, and to help clients determine which electronic fund transfer (EFT) products offer the best value, all participating banks and BSP supervised financial institutions (BFSIs) are required to disclose the details of fees charged to clients. A bulletin board of fees will soon be available on the BSP Web site.

PESONet is a more inclusive platform for EFTs which will make business-to-business (B2B), and customer-to-business (C2B) payments more practical. It enables digitization of government- to- government ( G2G) and person-to-government (P2G) collections and payments. PESONet participation is open to smaller industry players such as thrift and rural banks.

Other expected gains from PESONet are lowered costs; more efficient budget administration on government’s part; better liquidity management on private businesses’ side; and increased economic activity due to the accelerated velocity of payments and immediate availability of funds. Digital innovation in the delivery of financial services, and greater financial inclusion leveraging on technology to reach the financially unserved and underserved are also anticipated outcomes.

Instant Payments or “InstaPay” is a real- time low-value push payment scheme designed to facilitate small value payments conveniently and affordably. InstaPay enables merchants to accept digital payments