E-wallets seek rule parity with consumers

To sustain digital growth

MANILA, Philippines — Financial technology executives have urged policymakers to develop regulations that cover the interests of both consumers and e-wallets and in the process, expand the country’s digital finance.

In a panel discussion during the ASEAN Tech Summit Manila, fintech leaders expressed their worries over policies that seem to favor only the interests of consumers.

Barbie Dapul, chief operations officer of GCash’s operator G-Xchange Inc., cited as example the Bangko Sentral ng Pilipinas circular that encourages reducing transaction fees to as low as zero if possible.

Dapul said GCash could only afford to cut transfer fees to P10, as it has to pay for cybersecurity and reliability services to keep the e-wallet running. She called for regulations that give e-wallets the elbow room to earn for sustainability.

“The circular says that pricing needs to be fair. It needs to be reasonable, and it didn’t necessarily say that it had to be zero,” Dapul said.

Tala director for external affairs Arianne Ferrer said the fintech industry plays an important role in pushing digital finance, so letting its players earn gives them the chance to grow further.

“We need consumer-centric co-regulation that balances financial inclusion goals – greater access, choice and control to unleash the economic power of the global majority – and also a pathway to profitability and sustainability for local and foreign investors,” Ferrer said.

Maya Bank president Angelo Madrid reminded policymakers that regulations are crafted for two purposes: first, to protect consumers by making transactions safe and second, to enable investors to come in for the benefit of consumers.

Dapul said making regulations fairer for e-wallets would improve their viability. She also noted that e-wallets like GCash cater primarily to unbanked Filipinos by lowering barriers to financial access.

Moreover, Dapul believes it would be unfair for e-wallets to be covered by policies as traditional banks. She said traditional banks draw revenue from deposit and lending products, while fintech players lean on payment services to fund its growth.

“It’s really digital payments that enable us to make the investments needed to sustain innovation, build infrastructure and continue providing quality services to our customers,” Dapul said.

The ASEAN Tech Summit Manila gathered Southeast Asia’s public and private sector leaders in a two-day convention to discuss artificial intelligence, cross-border trade, governance issues and payment interoperability.