E-payment: Connecting people and platforms

BANCNET is the country’s only multi-bank, multi-channel electronic payments network that enables its members’ customers to transact not only at ATM but also at pointof-sale (POS) terminals, the internet and mobile phones.

Aside from the traditional cash withdrawal service at ATMs, BancNet provides a wide range of services through different channels, such as balance inquiry, checkbook re-order, statement request, interbank fund transfer, payment of bills, prepaid phone and internet reloading, payment of purchases by direct debit to account, and remittance of taxes, Pag-ibig, Philhealth and Social Security System (SSS) contribution and loan repayments.

Its interconnection with international ATM and POS networks, Diners Club, Discover Card, KFTC, JCB, MasterCard, NYCE, Union Pay, and VISA, enables foreign cardholders to access their accounts in the Philippines. Cardholders of Philippine-issued ATM cards can also access their accounts in the United States through NYCE’s network of ATMs, and in South Korea through KFTC.

BancNet facilitates payment transactions through three main channels that power its services: ATMs, POS Terminals and the internet.

AUTOMATED TELLER MACHINE

Perhaps the most ubiquitous sign of modern banking are ATMs. As the country’s sole ATM network, BancNet’s presence across the Philippines enables cardholders to conveniently access their accounts and safely withdraw cash, pay bills, transfer funds or do other transactions. ATMs and BancNet have indeed become synonymous with convenience, security and reliability. In 2016, the ATM network expanded to 19, 894 from 18,506 the previous year. Of this total, at-premise ATMs accounted

for 10,745, up by 2,656 over 2015; and 9,149 offsite ATMs, 2,529 more than in 2015.

POINT OF SALE

True to its role as a pioneer in providing electronic banking solutions, BancNet introduced debit card payment at POS more than two decades ago. As of Dec. 31, 2016, its POS network had grown to 141,465 terminals (22.34-percent up over 115,630 in 2015) handling 32.23 million transactions (29.28-percent more than the 24.93 million transactions in 2015) amounting to P112.73 billion (a 31.56-percent increase over P85.69 billion in 2015). It enhanced the capability of this service to handle POS Cash Out in 2015, enabling ATM cardholders to withdraw cash in areas where there are no ATMs by simply swiping their ATM card at a POS terminal at partner establishments. By yearend of 2016, BancNet had a total of 292 machines operating at 222 partner establishments consisting of rural banks, cooperatives, retail stores, pawnshops and payment centers. Of these, 112 were in Luzon, 49 in Visayas and 61 in Mindanao.

BancNet’s member-bank aggregators enlisted 126 new partner establishments in 2016 and rolled out 227 machines during the year, with eight acquiring banks or aggregators, including the original partner LANDBANK, and three that joined in 2016: China Bank, Dungganon Bank and PBCom. Together with 43 issuing banks, the POS Cash Out transaction volume soared from 41,522 in 2015 to 309,137 in 2016, while the total amount jumped from P183 million to P138 billion — a growth of 645 percent and 651 percent, respectively.

INTERNET

Internet use in the Philippines continued to grow as digital communication devices, media and channels have become more affordable and accessible. In 2016, 43.5 percent of the national population estimated at 102.25 million were identified as internet users.

Internet banking businesses likewise grew, with total approved transactions on BancNet Online (www.bancnetonline.

com) reaching 11.35 million versus 8.98 million in 2015, up 26.38 percent or 2.37 million transactions. Balance inquiry comprised the bulk of these at 10.15 million. Significantly, bills payment grew at the rate of 38.10 percent, from 2015’s 796,093 transactions to a total of 1.10 million transactions.