Digital payments top P 42T in BSP-backed system

The Bangko Sentral ng Pilipinas (BSP) is pushing for taking in more participants in its digital payment settlement system, dubbed PhilPaSSplus, as overall transactions more than doubled over a period of years to reach P42.4 trillion at the end of February.

PhilPaSSplus is a peso-based real-time gross settlement system that started its live run on July 26.

This new system can accommodate a growing number of settlements between financial institutions, has rigid controls to support transaction security in fund transfers and has enhanced system availability.

Also, PhilPaSSplus has broader access channels and enables integration with other payment systems locally and abroad.

The BSP said the number of rural banks participating in PhilPaSSplus increased by 22 percent to 101 as of end-February from 83 at the end of 2020.

Rural banks that are already connected to the system represent about a quarter of such banks in the Philippines as well as majority of PhilPaSSplus members.

“We will continue to intensify our efforts to onboard more participants, including small financial institutions in the countryside,” BSP Governor Benjamin Diokno said.

The BSP said the regulator will also revive the Annual Stakeholders Forum to further enhance engagement with the industry participant as well as launch new digital payment initiatives using central bank money, or demand deposit accounts maintained with BSP.

Diokno said that by participating in PhilPaSSplus, rural banks could offer digital payment services—particularly InstaPay and PESONet—which both settle through the platform. INQ