BSP grants e-money license to GrabPay

MANILA, Philippines — Ridesharing operator Grab has been given the green light to operate as an electronic money issuer (EMI) by the Bangko Sentral ng Pilipinas.

BSP Deputy Governor Chuchi Fonacier said the central bank’s Monetary Board has approved the application of GPay Network Philippines Inc. for an EMI license.

GPay Network is the operator of GrabPay wallet. Riding with Grab will become easier and more convenient for passengers who choose to go cashless with GrabPay.

Passengers can load up their GrabPay credits through driver partners, banks, and payment centers as well as credit or debit cards. They can earn GrabRewards points for more deals and freebies.

The Philippine Competition Commission (PCC) recently approved the acquisition of Uber by Grab Philippines.

The approval was subject to commitments on service quality, fare transparency, pricing commitment, removal of “see destination” feature, driver or operator non-exclusivity, incentive monitoring, and improvement plan.

The antitrust body warned Grab would be subject to fines of up to P2 million per violation.

Last March, Singapore-based Grab bought the SouthEast Asian business of US rival Uber.

Melchor Plabasan, deputy director and head of the core information technology specialist group at the BSP, said the regulator has so far issued EMI licenses to 41 companies, consisting of 30 banks and 11 non-banks.

Plabasan said the adoption of financial technology in delivering financial products and services has prompted the central bank to grant more EMI licenses.

In 2004, the BSP first used this “test-and-learn” approach to engage e-money pioneers as GCash and Smart Money were allowed to pilot e-money products.

This allowed the BSP to issue the regulatory framework governing the issuance of e-money and the operations of EMIs in March 2009.

Banks and non-banks continue to take advantage of opportunities from utilizing digital technology in financial transactions.

Technology has become an integral part of financial services amid the growing number of clients who prefer products and services that can be accessed in the comfort of their homes or via electronic services.