The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, is poised to significantly advance the digital payments landscape in the country with the upcoming introduction of its Request to Pay (RTP) and Direct Debit facilities.
Announced by BSP Deputy Governor Mamerto Tangonan during a recent press briefing, these initiatives are designed to streamline digital transactions across various platforms and industries.
Deputy Governor Tangonan detailed that the central bank will roll out the RTP Cash-in Service in the latter half of this year, enabling e-money users to top up their accounts seamlessly using any bank or e-wallet platform.
This move is expected to enhance the fluidity and accessibility of digital payments for millions of Filipinos.
Following the launch of the RTP Cash-in Service, the BSP plans to introduce a second RTP use-case specifically tailored for e-commerce by next year.
This development is aimed at addressing the limitations faced by consumers when e-commerce sites support only specific payment service providers, making digital transactions fully interoperable.
According to the 2023 Report on E-payments Measurement in the Philippines, digital payments constituted 52.8% of total retail transactions last year, marking a significant increase from 42.1% in 2022.
The rise is attributed to the growing prevalence of online merchant transactions, person-to-person remittances, and business-related supplier payments.
Tangonan emphasized the importance of supplier payments and person-to-business transactions, which comprise a considerable portion of the total retail payments volume.
He suggested that enhancing the convenience and efficiency of these payments could further drive the adoption of digital payments among businesses.
The RTP facility will allow payees to initiate collections by sending a “request to pay” to the payer, streamlining the traditional invoicing process.
This system is designed to provide both businesses and consumers with greater control over their payments and enhance cash flow visibility.
In addition to facilitating person-to-business and business-to-business transactions, the RTP service will support payments for goods, services, bills, and utilities more efficiently.
The BSP had previously soft-launched the InstaPay RTP cash-in service in December 2023, allowing users to fund their accounts or e-wallets by requesting funds from the originating financial institution.
This initiative expanded the network of cash-in services, increasing the usage of digital payments and lowering barriers to adoption.
Furthermore, Deputy Governor Tangonan mentioned ongoing collaborations with the industry to pilot the Direct Debit facility this year.
The Direct Debit system will enable customers to manage recurring payments, such as monthly rentals, loan amortizations, and insurance premiums, by authorizing billers to directly withdraw funds from their accounts.
