PESONet, InstaPay transactions up 29%

Driven by the wider use of electronic money and online banking, fund transfers via PESONet and InstaPay jumped by 29.3 percent to a record P12.8 trillion in 2023 from P9.9 trillion in 2022, according to the Bangko Sentral ng Pilipinas (BSP).

PESONet and InstaPay are automated clearing houses, created under the BSP’s National Retail Payment System (NRPS) to promote a safe, efficient, affordable, inclusive and reliable retail payment system.

The volume of PESONet and InstaPay transactions soared by 46.7 percent to 929.63 million from 633.49 million.

PESONet enables high-value transactions and may be considered as an electronic alternative to the paper-based check system, while InstaPay is a real-time, low-value electronic fund transfer facility for transactions of up to P50,000 and is most useful for remittances and e-commerce.

According to the BSP, the value of PESONet transactions increased by 22.3 percent to P7.84 trillion in 2023 from P6.41 trillion a year ago as volume inched up by 7.4 percent to 91.07 million from 84.8 million.

Likewise, the amount of InstaPay fund transfers surged by 41.9 percent to P5.01 trillion from P3.53 trillion as volume jumped by 52.8 percent to 838.55 million from 548.68 million.

For December alone, PESONet transactions increased by 15.3 percent to a record-high monthly level of P758.1 billion from P657.7 billion in the same period in 2022 as volume inched up by 1.2 percent to 7.78 million from 7.69 million.

Likewise, InstaPay fund transfers jumped by 43.2 percent to P549.7 billion from P383.8 billion as volume soared by 72.8 percent to 97 million from 56.1 million.

Under its Digital Payment Transformation Roadmap, the BSP aims to shift 50 percent of total retail transactions to electronic channels and onboard at least 70 percent of Filipino adults to the financial system through the ownership and use of a transaction account by 2023.

BSP Deputy Governor Mamerto Tangonan said during the recent media information session held in Tagaytay City that the share of digital payments to total retail transactions further increased to more than 42 percent in 2022 from 30.3 percent in 2021.

“This gives us the confidence that we will achieve our 50 percent target by 2023,” Tangonan said.

He pointed out that the central bank is focusing on merchant payments as these comprise about more than 70 percent of total retail payments volume.

“While it comprises more than 50 percent of total retail transaction volume, only a little more than half of that is digital. So there’s a lot of ground to cover,” he added.

Tangonan said there is a need to educate Filipinos and businesses about the interoperability of the QR (quick response) Ph of the national standard for QR codes.

He said the BSP is also improving person-to-person transactions to cover the sending of money as well as payments and salary disbursements.

Under the Philippine Development Plan, Tangonan said the government aims to further raise the share of digital payments to total retail transactions to between 60 and 70 percent by 2028.

Prior to the launch of the NRPS, the share of electronic payments to total retail transactions stood at only one percent in 2013.