The use of EGov Pay, a system that supports virtual payments for government services in the Philippines, reports an increase of 467% in payment volume to more than 91,000 transactions at end of 2021 from about 16,000 transactions a year prior. This, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP also revealed that the total value of EGov Pay transfers increased by around 300% , from only about Php 61 million back in 2020 to almost Php 246 million during 2021.
The most common payments processed via EGov Pay are fees for government-related clearances as well as settling taxes.
From only two government billers when the facility was introduced in 2019, 484 billers have now been onboarded to EGov Pay at end-April 2022.
The billers reportedly include provincial and local government units, state colleges and universities, water districts, and other government agencies and offices.
By taking part in EGov Pay, government institutions are able to efficiently collect revenues and potentially prevent revenue leaks via an improved audit trail, as well as greater transparency.
Recently, President Rodrigo R. Duterte (in the Philippines) had signed an executive order that has mandated the adoption of virtual payments for government disbursements and collections by all departments, bureaus, offices, and agencies, including government-owned or -controlled corporations.
As noted in the announcement, this is in line or consistent with Philippines government’s efforts to develop an inclusive digital finance ecosystem that’s consistent with the BSP’s Digital Payments Transformation Roadmap 2020-2023 and the National Strategy for Financial Inclusion 2022-2028.
Benjamin E. Diokno, Governor of BSP, stated:
“The sustained increase in the use of EGov Pay, even after mobility restrictions were lifted, proves the shifting preference of consumers towards greater adoption of digital payments.”
Fintech adoption is on the rise in the Philippines. Many new startups have acquired substantial funding to support their ongoing growth and development.
As covered recently, Coins.ph, the Philippines’ fiat and crypto wallet services provider and Joffre Capital portfolio company recently announced the completion of a $30 million Series C financing led by Ribbit Capital, and “joined by other strategic investors.”
As reported, Xendit, one of the “fastest-growing” payments infrastructure platforms for Southeast Asia, announced that it closed $300 million in Series D funding, “taking the total amount raised to $538 million to power the world’s fastest-growing digital economy.”