Council backs digital payment

CEBU, Philippines —  The Cebu City Council has approved on second reading the proposed ordinance of Vice Mayor Raymond Alvin Garcia that seeks to establish an electronic payment for taxes and other fees in the city.

In its regular session last week, the council set the public hearing for Garcia's "An Ordinance Authorizing an Electronic Payment and Collection System for the Settlement of Taxes Fees, Charges, Assessments and Revenues due to the City of Cebu" on Nov. 9, following the approval of the committee report.

In its report, the committee, headed by City Councilor Noel Wenceslao, said The people's lack of awareness on the benefits of digital payments and security concerns are challenges that would have to be overcomed once the proposed ordinance is approved.

Garcia's ordinance "seeks to authorize an electronic payment and collection system for the settlement of taxes, fees, charges, assessments, and revenues due to the city of Cebu".

It means that the City Government would adopt electronic payment and collection as a way for its constituents to pay their taxes and other fees.

In presenting their report, Wenceslao said the people, especially in the rural areas of the city, still lack the "innovative awareness" to engage in digital payment or appreciation of its benefits.

That is why, he said, many people would still rely on cash for their daily transactions

"In addition, there are concerns about the security of digital payments, as there have been instances of fraud, money laundering, and hacking in the past and still happening in the present," he also said.

The committee cited the research study of Rachna and Singh (2013) that cited, among others, lack of usability, lack of security, lack of trust, lack of awareness, issues e-cash, users' perception regarding acceptance of electronic payment systems and online payments as not feasible in rural areas, as challenges for digital payments.

"This growth (digital payment) would have been surprising in a country that has traditionally been slow to embrace modernisation of tried-and-tested mainstream systems, such as cash," Wenceslao said.

He said, though, that the ordinance would pave the way for the increased availability and accessibility of digital payments in the country.

"Digital payments alternatives represent the potential for some measure of financial independence for the majority of the residents and taxpayers of Cebu City," read a portion of the report.

The committee also mentioned that digital payments improves financial inclusion in the city and this modern way of transacting business, which is growing, gets a boost with the ordinance.

"It (proposed ordinance) can encourage people to open an account to get access to digital and mobile payments as an alternative to cash," it added. (CEBU NEWS)