BSP eyes digitalization of gov’t transactions

The Bangko Sentral ng Pilipinas (BSP) is looking at putting government transactions online as it aims to increase the level of cashless transactions to 20 percent by 2020 from the current level of about one percent.

BSP Governor Nestor Espenilla Jr. said on the sidelines of the media forum organized by PesoNet the digitization of government transactions is a key part of the National Retail Payment System (NRPS) launched in December 2015.

The NRPS was establish to create a safe, efficient, affordable, and reliable e-payments system.

“The government actually has many transactions even with individuals. The government is paying salaries to teachers, police, and soldiers. So these can benefit from digitalization,” Espenilla said.

He said the government also pays a lot of suppliers, social security premiums, dividends, taxes and fees that could be coursed through digital channels.

“Actually there is a lot of possibility. So once government is geared up to participate I don’t really look at it as a linear growth. It is not like three percent every year we are talking about maybe it its three percent or four percent now, but it can immediately take off to the 10 or 20 percent once the bulk users come in,” Espenilla said.

The BSP chief pointed out the central bank is also targeting large consumer companies to reach the critical mass to shift to electronic payments.

According to Espenilla, transactions are coursed primarily through government banks.

“The government banks are already gearing up to be able to participate. So it is just a question of months before they are ready and that is why I am quite confident that 20 percent is very doable,” Espenilla said.