By Philippine News Agency
Monetary officials are considering two schemes that will be used in the implementation of the National Retail Payment System (NRPS).
The Bangko Sentral ng Pilipinas (BSP) and industry players launched the NRPS Framework in December 2015. The program aims to increase electronic payments in the country from the current one percent of around 2.5 billion monthly payment transactions in the country to around 20 percent by 2020.
BSP Deputy Governor Nestor Espenilla Jr. told reporters that the two schemes are batch electronic fund transfer, which will eventually replace usage of cheques, and instapay, which immediately provides funds.
He said the first scheme will enable people to electronically transfer funds from their account to other accounts for online payments.
On the second one, Espenilla said there will be mechanisms to be set up to make the fund transfer happen real time.
“Those are two use cases but there are others down the road. These will be the priorities because we think these are the ones that have the most traction for retail payments system,” he said.
Espenilla said officials of the BSP and the banks are scheduled to sign agreements on the NRPS by end-March this year.
He said the program “creates a shared clearing and settlement system that will allow banks to offer digital financial services in an inter-operable way.”
He said although electronic payment system is already being used now, limitations remain and these are what the NRPS wants to address.
“Although there’s electronic banking system today, they’re generally in silos. You transact within the ecosystem defined by the bank and its related companies so they don’t interact with each other,” he said.
“With this in place, we’ll be able to cross, so to speak, those barriers,” he said.
Espenilla said success rate of NRPS cannot be measured with a specific mode because “they don’t go linearly.”
He, however, pointed out that “once things are in place they grow very rapidly and that’s what we hope to happen here.”