BSP to roll out person- to-merchant QR transactions in Q4

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is rolling out the person-to-merchant (P2M) transactions via the national QR (quick response) code standard in the fourth quarter of the year as it ramps up efforts to make the economy lite instead of cash heavy.

BSP Governor Benjamin Diokno said the regulator is working with the payment industry, particularly the Philippine Payments Management Inc. (PPMI) as well as payments service providers to polish the rules and ensure the smooth implementation of the P2M.

“The P2M QR Ph is expected to be launched later this year,” Diokno said.

The BSP launched the QR Ph last Nov. 22 with six participating banks allowing the person-to-person (P2P) transfer of funds via the scanning of QR code.

Participating institutions under the P2P QR Ph now include Asia United Bank, China Bank, state-run Land Bank of the Philippines, Metrobank Group of the late taipan George SK Ty, Yuchengco-led Rizal Commercial Banking Corp., Aboitiz-led Union Bank of the Philippines, and PayMaya.

The use of QR codes for payments has been gaining traction as an alternative to the traditional debit and credit card payments. The QR technology has emerged as the most expedient means of payment since it essentially entails code scanning which is faster and easier to do than bringing out a card, tapping, dipping or swiping it, and signing a charge slip in most cases.

Likewise, consumers benefit having faster, easier and cheaper payment options with greater convenience.

The funds are transferred through InstaPay, the real-time, low-value ACH formed under the National Retail Payment System (NRPS).

Likewise, Diokno said the regulator sees increasing institutional participation and improving payment services particularly in the government electronic-payment (EGov Pay) facility that allows online payment of taxes and government fees.

The BSP chief said nine government agencies and three banks are now participants in the EGov Pay facility, while six more government entities and a bank are expected to be onboarded within the year.

Participating in the program are the Bureau of Internal Revenue, Department of Trade and Industry, Philippine National Police; the city governments of Manila, Quezon City, Valenzuela, General Santos and San Pedro, Laguna; and the local government of Baler, Aurora.

For onboarding this year are the Philippine Overseas Employment Administration, Environmental Management Bureau, city government of Davao, Land Transportation Office, Philippine Regulatory Commission, and the Philippine Charity Sweepstakes Office.

Banks offering EGov Pay are the Landbank, RCBC, Robinsons Bank and UnionBank, while Metrobank’s Philippine Savings Bank is undergoing onboarding.