By Lee C. Chipongian
One of the e-payments enabler of the central bank’s National Retail Payment System (NRPS), PESO Net, will begin activities this week as an automated clearing house (ACH).
This was announced by Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr.
Banks and non-bank electronic money issuers (EMIs) have signed the charter of the Payment System Management Body (PSMB) for the e-payments PESO Net and InstaPay.
PESO Net is a batch electronic fund transfer (EFT) credit ACH. Espenilla said the ACH is scheduled to launch on Wednesday, November 8.
“We are now working with the industry on the formation of two priority ACHs that will actually deliver the payment solutions – the batch electronic fund transfer credit payment scheme (called PESO Net); and the real-time low-value push payment scheme (called InstaPay),” Espenilla said during a forum at the World Trade Center.
He said the Philippine Payments Management, Inc. (PPMI), which has already been registered with the Securities and Exchange Commission, will “act as the industry-driven self-governing body to drive the responsible development and operations of the retail payment system.”
The PPMI will aid the BSP in the NRPS by ensuring that it is implemented correctly.
Bankers Association of the Philippines president Nestor Tan said last month that PPMI will organize direct clearing participants into a self-governing body and assist the BSP in overseeing the development and operations of the retail payment system.
“With the advent of technology, the PPMI can help in recommending policies to the BSP and various agencies towards a more financially inclusive economic system for the Filipinos through cooperation and competition from various financial service providers,” Tan, who is BDO Unibank president, said.
Espenilla said the NRPS is part of the national strategy for financial inclusion, which would allow more Filipinos to “have access to a basic transaction account in a bank or non-bank financial institution to send and receive payments via any electronic device.”
“The NRPS, and the inter-operable digital payment ecosystem that it will enable, will make it convenient and affordable to transfer funds between and among accounts using any digital device,” he said. “NRPS will facilitate our transition to a cash-lite economy.”
The NRPS via the two ACHs expands financial consumers’ payment options through electronic payments. It is considered the gateway for the unbanked and underserved financial consumers in the Philippines.
The central bank expects banks and non-banks to tap one or both ACHs. The difference is that PESO Net facilitates fund transfer from one account or payer to one or several accounts and are not time-critical.
InstaPay, on the other hand, as a real-time electronic fund transfer system.
The central bank has had to implement several policies first before engaging the NRPS, such as unifying the automated teller machines switch networks Megalink and Bancnet in 2015 and the electronic check clearing last January.
Tags: Bangko Sentral ng Pilipinas, BSP to launch e-payment enabler PESO Net this week, electronic fund transfer, Governor Nestor A. Espenilla, National Retail Payment System, Payment System Management Body, peso, PESO Net, responsible development, The central bank