BSP speeds up digital onboarding of MSMEs

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is finalizing a policy framework for basic merchant accounts to accelerate the digital onboarding of micro, small, and medium enterprises (MSMEs).

Aside from pushing digital payment acceptance among MSMEs, the proposed amendments to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions to introduce the guidelines for basic merchant accounts aim to also promote financial inclusion.

“It is part of the strategic thrust of the BSP to develop an inclusive financial system where Filipinos and their enterprises have access to a wide range of financial services appropriately designed for their needs, capabilities and context,” the central bank said in a draft circular.

According to the BSP, the introduction of a policy framework for basic merchant accounts aims to promote the uptake of merchant accounts to enable seamless payments.

It is designed specifically for the small and micro merchants who may have limited resources and capabilities to open a regular merchant account for their enterprise.

A basic merchant account refers to an account that allows MSMEs to accept digital person-to-merchant and business-to-business payments.

“The BSP endeavors to promote broad adoption of digital payment among consumers and businesses given its welfare-enhancing benefits for its users and the country,” the central bank said.

The initiative covers ambulant vendors, sari-sari store owners, small eateries, as well as tricycle or pedicab drivers and operators with a monthly inflow of up to P100,000 and mini groceries, market stall vendors, and bakeries with an inflow of between P100,001 and P500,000.

The minimum opening deposit ranges between P100 and not more than P500.

On the other hand, convenience stores, pharmacies, gasoline station and restaurants with a monthly inflow of P500,001 to P1 million should have a minimum opening deposit of not more than P3,000 with a minimum maintaining balance of P5,000.

“A basic merchant account shall be opened and maintained under either the name of the business owner or the juridical business entity. If using the name of business owner, the account name shall include the name of the shop/business enterprise. Only one basic merchant account product under a particular name shall be opened in a bank,” the BSP said.

The regulator said all banks, as well as electronic money issuers, should strictly adhere to the guidelines for offering basic merchant account products.

The central bank will also provide incentives to banks with outstanding basic merchant accounts via reduced annual supervisory fee. Banks with at least 5,000 to 100,000 basis merchant accounts are entitled to 10 percent discount or P10 million, whichever is lower, on their annual supervisory fee, while those with more than 100,000 would get a reduced fee of 25 percent or P15 million.