National standard for QR code payments seeks to wean Pinoys off cash, cards
MANILA, Philippines — The Bangko Sentral ng Pilipinas said Thursday it approved a policy requiring the adoption of a national standard for quick response (QR) code payments, with the goal of ensuring that Filipinos can use an efficient and safe payment system.
The central bank said it will collaborate with the Philippine Payments Management Inc., or PPMI, in setting a national QR code standard that is aligned with international standards so the system will be interoperable not just in the country but also abroad.
A QR code is a computer-generated image — usually a black-and-white square pattern — used for payments or fund transfers. The code is scanned via a smartphone camera to make transactions.
The use of this code is seen as an alternative to the traditional debit and credit cards. A QR code contains most, if not all, of the critical transaction information such as account name and account number, helping minimize encoding errors.
Being the country’s payment system management body, the PPMI will coordinate with stakeholders to build public trust in the QR technology by ensuring that payment service providers, both banks and non-banks, have the necessary security measures.
Meanwhile, the payment service providers will be required to establish an appropriate pricing mechanism for QR-enabled payment and financial services to encourage their clients to use these services.
“The adoption of a QR Code Standard on a national scale is expected to bring more Filipinos as well as micro and small enterprises onboard the financial system,” the BSP said.
“Moreover, it is faster and easier to just scan the code than to dip or swipe a card, and sign a charge slip,” it added.
Currently, non-bank financial firms like PayMaya and GCash are offering QR payments via select stores.
Under the regulator’s National Retail Payment System initiative, the BSP is targeting digital payments to rise to 20% of total transactions by next year, from a 1% share in 2013.
The BSP said it will be notified once the PPMI Board approves the national QR code standard — which payment service providers are required to adopt within 30 days from the date of the said notification.
For payment service providers already offering QR-enabled payment service, they are allowed to fully comply with the national standard until June 30 next year. — with a report from BusinessWorld
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