PESONet, InstaPay transactions reach P160 billion in end-November

MANILA, Philippines — Cash transfers coursed through the automated clearing houses of the National Retail Payment System (NRPS) reached P159.5 billion in end-November as the Bangko Sentral ng Pilipinas (BSP) pursues the country’s transformation into a cash lite from a cash heavy economy.

BSP Governor Benjamin Diokno said about half of total transactions in the country would be digital by the end of his term in 2023.

For 2020, Diokno said he is confident about 30 percent instead of the projected 20 percent of all financial transactions would be coursed through digital channels.

“My plan is that by the end of 2020, 30 percent of all financial transactions are already digital. By the end of my term, around 50 percent will be digital,” he added.

The latest survey of the United Nation’s led Better Than Cash Alliance (BTCA) showed the share of digital transactions to total transactions in the country in terms of value jumped to 20 percent in 2018 from eight percent in 2013 and to 10 percent from one percent in terms of value.

The BSP launched the NRPS in December 2015 to establish a safe, efficient, affordable, and reliable electronic payments system paving the way for the launch of the PESONet (Philippine EFT System and Operations Network) and InstaPay.

The PESONet allows fund transfer processed in bulk and cleared at batch intervals from one account to one or several accounts maintained in different banks, while InstaPay allows customers to transfer peso funds of up to P50,000 per transaction almost instantly between accounts of participating banks.

Latest data from the central bank showed digital transactions coursed through PESONet and InstaPay reached P159.5 billion in end November. PESONet transactions amounted to P125.4 billion as volume reached 1.1 million, while InstaPay transactions reached P34.1 billion with 4.83 million transactions.

BSP Deputy Governor Chuchi Fonacier said PESONet has 55 participating institutions, while InstaPay has 45 institutions participants.

“We are anticipating additional participants next year. The growth of PESONet and InstaPay transactions is expected to maintain its momentum as more BSP supervised financial institutions are preparing to offer these services,” Fonacier told The STAR.

President Duterte signed Republic Act 11127 or the National Payment Systems Act providing oversight, regulation and supervision of payment systems.

The BSP recently launched the government electronic payments facility (EGov Pay) and the national QR (quick response) code or QR Ph to further boost the country’s digital payments.

The online facility allows the public to pay taxes and other fees due to the government through the Land Bank of the Philippines’ (LBP) Link.Biz portal. To date, participants include the Bureau of Internal Revenue (BIR), Department of Trade and Industry (DTI), Philippine National Police (PNP) and six other local government units or offices.

“More government agencies are expected to leverage on the efficiencies of e-payments by participating as billers thereby allowing more Filipinos to experience the secure, fast, and convenient way of electronically paying the government,” Fonacier said.

On the other hand, QR Ph allows customers of participating banks and non-bank electronic money issuers a quick and safe method to pay using InstaPay rails.