BSP promotes expanded use of digital payments for faster, more secure transactions

DIGITAL PAYMENTS and CYBER HYGIENE. The Bangko Sentral ng Pilipinas North Luzon Regional Office director Noel Neil Q. Malimban (2nd from left) encourages the public to create an account and try sending small amounts to family and friends to experience the benefits of going digital. However, he cautions against sharing personal details such as PIN and OTP to prevent falling victim to fraud and online scams. Malimban shared these insights during the Kapihan sa Baguio held on March 14, 2023, at the BSP NLRO in Loakan, Baguio City. Merriam del Rosario // FNS

BAGUIO CITY – The Bangko Sentral ng Pilipinas (BSP) continues to push for the widespread adoption of digital payments in the country, emphasizing the numerous benefits that such a shift could bring to the economy and the people.

In a recent press briefing, the BSP North Luzon Regional Office (NLRO) highlighted the importance of transitioning towards a cash-lite economy, citing the convenience, increase in economic activity, market inclusion, and enhanced security that digital payments offer.

The BSP said that expanding the use of digital payments would not only benefit consumers by providing a faster and more convenient way to transact, but it would also be beneficial for businesses as it could potentially reduce their operating costs from the handling, processing, and transportation of cash and checks.

They said the shift towards digital payments could also help promote financial literacy by encouraging individuals to become more familiar with banking and financial services as well as gain access to financial services that were previously unavailable or inaccessible.

The BSP has been intensifying its efforts to promote the use of digital payments in the country, increase awareness, and encourage adoption.

The BSP stated that they made the registration for digital payments easy, in collaboration with financial institutions so that the target will be attained.

They said they are targeting 70% of the volume of transactions of the entire country to go digital.

The central bank has also been working on improving the regulatory framework to ensure the security and reliability of digital payment systems.

As part of its campaign, the BSP has launched the National Retail Payment System (NRPS), to allow every Filipino to perform digital payments using just one transaction account that could be used to perform different transactions, receive money from any institution, pay bills, send money, etc.

The BSP has also launched a series of awareness campaigns to educate Filipinos on the benefits of digital payments and the steps they can take to use them safely and securely.

The BSP’s efforts have already yielded positive results, with the adoption of digital payments significantly increased in recent years.

In 2020, the volume of e-wallet transactions reached 1.7B or a remarkable 172% increase from approximately 600M transactions in 2019.

The number of registered e-wallet accounts also grew tremendously by 237% from 41M in 2019 to 138.8M in 2020.

The BSP hopes to build on this momentum and accelerate the adoption of digital payments.

However, BSP stated that it is crucial to digitalize business payments as these account for 24.1% of the total monthly retail payments in the country, but still lag behind individual and government transactions.

BSP said that only 4% of the total supplier payments are in digital form.

During a press briefing held on March 14, 2023, at the BSP NLRO, Regional Director Noel Neil Q. Malimban explained that BSP’s continued advocacy for the adoption of digital payments drives economic growth and promotes financial inclusion in the country, ultimately benefiting both individuals and businesses.

“Our advocacy is to resonate and manifest its relevance in our day-to-day lives…digital payments is not the future, it is the present, it is the here, it is the now,” Malimban said.

He also assured the public that the use of digital payments is secure and that they understand the challenges encountered with the new system.

“We assure you, the use of digital payments is safe, but we do not stop there…we teach the public the safe way to use these big digital payment platforms. Because this is new to most of us, we need to learn how to use it the safe way,” Malimban added.

Malimban also echoed BSP Governor Felipe M. Medalla’s statement, emphasizing the urgency of the use of digital payments and urging the public not to be left behind.

“It’s full speed ahead,” said Medalla, and Malimban reiterated the sentiment.

Meanwhile, BSP NLRO bank officer Marian C. Patosa announced that the regional office conducts financial education for the public to learn how to secure their digital accounts.

“BSP is conducting financial literacy (financial education) per branch in all sectors covering the whole north Luzon area…Information caravans are being conducted in two provinces per month, targeting the underserved sectors, including senior citizens, fisherfolk, and farmers,” Patosa said. ###  Merriam del Rosario // FNS