Payment systems operators required to register with BSP

MANILA, Philippines — Operators of payment systems are now required to register with the Bangko Sentral ng Pilipinas (BSP) as the government ramps up the country’s transformation to a cash-lite economy.

BSP Deputy Governor Francisco Dakila Jr. issued Circular 1049 laying down the rules and regulations on the registration of operators of payment systems approved by the Monetary Board last Sept. 5.

Dakila said the new regulation is in line with the implementation of Republic Act 11127 or the National Payment Systems Act approved by President Duterte last February.

“The BSP recognizes the crucial role of payment systems in maintaining a stable financial system and facilitating the realization of monetary policy objectives. It is thus important for the operation of payment systems to be safe, efficient and reliable,” he stated in the circular.

He said operators of payment systems include those that maintain platforms that enable payments or fund transfers, regardless of whether the source and destination accounts are maintained with the same or different institutions as well as those that operate the system or network that enables payments or fund transfers to be made through the use of a payment instrument.

Likewise, Dakila said companies that provide a system that processes payments on behalf of any person or the government are required to register with the BSP.

New operators of payment systems are required to file an application for registration with the BSP and at the same time submit a business plan as well as copies of their business registrations and permits.

Furthermore, Dakila added operators of payment services that are currently operating at the time of the effectivity of the law are also required to register with the BSP not later than three months from the effectivity of the new guidelines.

“The following requirements shall apply to banks and electronic money issuers that are currently operating, or will later operate, as an operator of payment system,” he said.

Banks and EMIs are required to submit a notification with the BSP on their existing businesses as operators of payment systems including business model and target markets.