The central bank launched on Monday a system that can process cashless payments of up to P50,000 per transaction. This is expected to bring the country closer to its goal of turning at least a fifth of the country’s payments into electronic transactions.
InstaPay, the second automated clearing house under the National Retail Payment System of the Bangko Sentral ng Pilipinas (BSP), is an electronic fund transfer similar to the Philippine EFT System and Operations Network (PESONet) launched last year.
“The [system] aims to establish a safe, efficient, affordable, and reliable electronic retail payments system in the country, with an increase in the share of electronic retail payments to at least 20 percent by 2020,” BSP Governor Nestor Espenilla Jr. said.
At present, 99 percent of all payment transactions in the country are still settled in cash, the BSP chief earlier said.
In his remarks during Monday’s ceremonies, Espenilla highlighted the importance of working with the private sector to push for the adoption of electronic payments. He stressed that broader utilization of these platforms will accelerate economic growth for the country and make the Philippines more competitive.
With InstaPay, Filipinos can start making safe and affordable electronic retail payments in real time.
Individuals, businesses, and government institutions will be able to send and receive funds or make payments in real time of up to P50,000 per transaction, without limit, in a day.
The transferred funds are received in full as no fee is charged for the electronic crediting of funds to the receiving party’s account in InstaPay participating institutions.
Charges may, however, apply to sending parties. Recipients may also be charged for cash withdrawals.
InstaPay will be accessible 24/7 and all-year round through mobile apps and internet banking facilities provided by participating banks and e-money issuers, with other e-channels following soon.
This eliminates the need for people to transact at bank branches or payments counters.
Both senders and receivers must have accounts with participating institutions to enjoy instant transfers. The interoperability of InstaPay allows users to conveniently transact between accounts maintained at any of the participating institutions.
At present, there are only 20 InstaPay participating institutions, but this number is expected to increase quickly in the coming months as more institutions respond to customer demand.
Aside from Espenilla, InstaPay’s launch was attended by officials of national government agencies, members of the Monetary Board, and directors and senior officers of participating institutions. /ee