E-payments boost gov’t revenue collection efficiency | Inquirer Business
Close  
‘EGov Pay’ transactions up over 400% in 2021

E-payments boost gov’t revenue collection efficiency

The electronic payment system dubbed “EGov Pay” is helping the government collect revenue more efficiently, with the digitization of transactions now being implemented in close to 500 agencies.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said at a briefing on Thursday usage of EGov Pay rocketed by 467 percent to more than 91,000 transactions in 2021 from around 16,000 transactions in 2020.

ADVERTISEMENT

In terms of value, transactions surged by 300 percent to a total of P246 million in 2021 from P61 million in 2020.

Diokno said that, in the first four months of 2022, the number of transactions already reached 50,000 with collections totaling at P243 million.

FEATURED STORIES

“The sustained increase in the use of EGov Pay, even after mobility restrictions were lifted, proves the shifting preference of consumers towards greater adoption of digital payments,” the BSP chief said.

Most payments made through EGov Pay involved fees for government clearances and also taxes.

Launched in 2019 and starting with two government entities, EGov Pay now has 484 billers onboard, including provincial and local government units, state colleges and universities, water districts, and agencies and offices.

Diokno said that by participating in EGov Pay, government institutions can efficiently collect revenues, curb revenue leaks through efficient collection means, and benefit from a better audit trail as well as enhanced transparency.

Duterte order

In light of these advantages, President Duterte last May 12 signed Executive Order No. 170, which mandates the adoption of digital payments for government disbursements and collections by all departments, bureaus, offices and agencies—including government-owned or -controlled corporations.

Currently, the top two government agencies that use EGov Pay are the Philippine National Police and the Bureau of Internal Revenue.

“By using EGov Pay through their mobile devices, Filipinos no longer need to physically visit government offices and wait in long queues to pay for taxes, fees and other government obligations,” Diokno said. “Aside from reducing the risk of COVID-19 transmission, they can also save time and reduce transport costs.”

ADVERTISEMENT

Private sector partners

Also, the BSP in partnership with industry group Philippine Payments Management Inc. is launching three new electronic payment systems as part of a push to broaden the reach of digital technology in the financial sector.

One is dubbed “Bills Pay,” which will allow retail consumers to pay their electricity, water and telephone bills even if the accounts of the customer and the biller are with different banks or other financial institutions.

Another is “Request to Pay,” which is designed to enable payees to initiate collections by sending a request to pay to the payor—without the need to provide the account details or the amount.

And the third is “Direct Debit,” which allows users to better manage recurring payments—such as monthly rentals, amortizations, insurance—by simply authorizing the billers to pull funds from the account of the user or party making a payment.

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: Benjamin Diokno, e-payments, eGov Pay
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 1997-2022 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.