An executive from the BSP encourages more individuals to utilize digital payments
Because of the limitations on travel during the epidemic, digital payments increased dramatically. However, some individuals are vehement about this change, and it is necessary to reach out to this group, according to a senior monetary official.
The BSP Payments and Currency Development Sub-Sector Assistant Governor Edna Villa said the share of digital payments in total payments reached around 17 to 18 percent in the first half of 2020, which is close to the central bank’s goal of 20 percent by 2020. Villa was speaking at the virtual 2021 Bangko Sentral ng Pilipinas Youth Summit on Friday.
By 2023, the BSP hopes to raise the proportion of digital payments to 50% of the total by introducing new regulations.
Villa is confident in the BSP’s ability to achieve its goals, but he cautioned that there are still obstacles to overcome, one of which is some people’s reluctance to utilize digital methods for their financial activities.
“There are still parts of society who do not have faith in the system,” says the author. They are not yet aware of the fact that they may pay via digital methods, therefore we must educate and inform those sectors of society. And it is one of the reasons why the BSP has a large number of consumer awareness programs,” she said.
According to Deputy Governor Mamerto Tangonan of the BSP, the existing digital money transfer facilities, such as the PESONet and InstaPay, are insufficient to increase digital payments since they cannot be utilized to pay merchants and invoices on a timely basis.
He said that payments to merchants account for about 70% of overall retail purchases, and that the full deployment of QR PH P2M (person-to-merchant), or the use of QR (quick response) codes to pay merchants, would be completed by the third quarter of this year.
The BSP is presently experimenting with QR PH P2M via a small number of merchants and banking institutions.
Persons who want to pay for goods or services may do so by simply scanning the QR code of the company with their mobile phones, according to this method.
“It is very essential since, as you are aware, QR code represents a highly cost-effective alternative to card-based payment transactions when it comes to digitalizing payment transactions,” Tangonan said.
He anticipates that once QR PH P2M is fully operational, a significant number of payments to retailers will be made via this system, since it is more easy, secure, and low-cost than other payment methods available now.
As a result, he believes that if we provide the market with the most suitable, easy, and cheap digital payment solution for the most widely-used payments use cases, we will be able to accomplish our goal of a cashless society.