JP Morgan Chase, Mizuho to tap PhilPass remittance system

MANILA, Philippines - Two foreign banks are planning to tap the Philippine Payments and Settlements System (PhilPaSS) remittance platform — with one expected to do so this year— paving the way for easier sending of overseas Filipino remittances, an official said.

J.P. Morgan and Chase Co. and Mizuho Bank of Japan are in talks with BSP to connect to the PhilPaSS Remit with the former expected to do so before the year ends, BSP payments and settlements office director Bella Santos said yesterday.

 “For Mizuho, we just started (talking) two weeks ago,” Santos told reporters in a briefing.

 “They are the first foreign banks that have signified interest to PhilPaSS Remit. Because of this, we thought of why not also communicate with other foreign banks,” she explained.

Established in October 2010, PhilPaSS Remit is a service offered through the BSP’s official clearing and payments facility, PhilPaSS. It provides a safer and cheaper means of sending money to beneficiaries of overseas Filipinos.

Aside from lower charges, PhilPaSS Remit allows Filipinos abroad to send money to their families here without the need for the latter to open and maintain bank accounts. It is also equipped with a feedback mechanism that allows the monitoring of remittances.

The remittance facility is part of PhilPaSS, which collectively is an efficient payment and settlements system put up in pursuit of BSP’s core mandate.

Majority of foreign banks which have operations in the Philippines are using PhilPaSS but mainly only for settlements and payments, Santos said. “If ever, J.P. Morgan and Mizuho will be the first foreign banks to utilize PhilPaSS Remit,” she added.

Aside from being able to service overseas Filipinos, the banks will be able to send in their salaries for Filipino workers here through PhilPaSS Remit, saving them costs, Santos explained.

 “I think most of them are using the couriers which charge P40 per transaction. That is higher compared to what we charge in using PhilPaSS Remit, which is only P5 regardless of the amount to be sent,” she said.