The central bank’s goal of seeing up to a fifth of the country’s payments made with electronic money received a boost yesterday with the launch of a second system that can process cashless payments of up to P50,000 per transaction.
Dubbed InstaPay, the automated clearing house is part of the National Retail Payment System of the Bangko Sentral ng Pilipinas (BSP), and follows a similar system called PesoNet that was 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 transactions executed in the country is still settled in cash, according to the BSP chief.
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 said broader utilization of these platforms would accelerate economic growth for the country and make the Philippines more competitive.
Via 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 instantly 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, all year round through mobile apps and internet banking facilities provided by participating banks and e-money issuers, with other e-channels following soon.