Online payments to gov’t rise by 5,000 percent, says BSP | Inquirer Business
Close  

Online payments to gov’t rise by 5,000 percent, says BSP

By: - Reporter / @daxinq
/ 05:30 PM July 08, 2021

MANILA, Philippines — Transactions using EGov Pay—an online payment app for taxes, permits and other government fees—rose sharply in volue and value by May 2021 as Filipinos continued to use digital platforms during the pandemic.

At an online briefing, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the use of EGov Pay for payments to government increased year-on-year by over 5,000 percent in volume and almost 2,000 percent in value in May.

ADVERTISEMENT

EGov Pay transactions also increased by an average of 98 percent in volume and 126 percent in value from the first quarter of 2020 to the first quarter of 2021. Payment of fees for clearances and taxes drove most of the utilization of this facility.

“Aside from curbing revenue leaks, fostering better audit trail and enhancing transparency, the wider usage of EGov Pay is seen to promote efficiency in the country’s revenue generation efforts under the new economy,” Diokno said.

FEATURED STORIES

From only two government institutions when the facility was launched in 2019, EGov Pay now has 387 government billers. This translates to 90 percent of total government billers for inclusion in the digital platform in 2021.

Amid the sustained rise in billers, the BSP is approaching its goal of “onboarding” 100 percent of the target number of participating government entities this year.

“All these EGov Pay numbers show that the dramatic shift of payments made to government into digital form,” Diokno said.

Government clients can use EGov Pay by initiating payments through the Land Bank of the Philippines’ Link.Biz portal which will direct them to the Philippine Clearing House Corp.’s PayGate platform.

This platform allows government clients to choose the payment service provider from which funds will be transferred to the government via PESONet, an electronic fund transfer facility that serves as an alternative to the paper-based cheque system.

More government transactions are expected to be facilitated through EGov Pay transactions as the BSP continues to closely work with the payments industry, led by the Philippine Payments Management Inc. to attract more government institutions and PESONet participating financial institutions.

“The sustained growth in EGov Pay transactions provide strong support to BSP initiatives to digitalize person to government payments and to digitalize at least half of retail payment transactions by 2023,” Diokno said.

TSB
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bangko Sentral ng Pilipinas, Benjamin Diokno, Business, eGov Pay, Land Bank of the Philippines, Online Payments
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.