Electronic transfers

PESONet H1 Transactions Soar 48% – Manila Bulletin

According to Bangko Sentral ng Pilipinas (BSP), payment transactions via PESONet increased by 48.1% year-on-year at the end of June, boosted by the multi-lot settlement (MBS) facility.

The total value of PESONet’s MBS stood at 2.9 trillion pesos in the first half of 2022. In volume, transactions processed also increased by 28.7% to 40.8 million during the period.

The MBS was introduced in January this year. It is an automated clearinghouse established as part of the BSP’s national retail payment system. It has increased the frequency of PESONet settlements from once to twice a day. Specifically, it has increased the frequency with which payments are received by payees, enabling faster clearing and settlement of personal transactions.

PESONet is a batch electronic funds transfer system intended to replace, or even replace, the paper check system. The BSP said it will reduce the production cycle time and is expected to improve business productivity, as funds are received and made available to beneficiaries sooner.

“Through PESONet, businesses, government and individuals will be able to easily initiate electronic funds transfers and recurring payments from sender accounts maintained at BSP supervised financial institutions (BSFIs), such as banks and other non-bank e-money issuers, for corresponding recipient accounts in other OSFIs,” the BSP said.

The BSP said it remains on track with its plan to introduce three additional electronic payment streams Bills Pay, Request-to-Pay and Direct Debit, possibly in the last two quarters of the year.

The three electronic payment inbound streams will help expand the use of digital payments over the next two years and achieve the migration of 50% of all payment transactions to digital form by next year.

Interoperable bill payment and payment request facilities will operate through InstaPay while Direct Debit will be through PESONet.

The payment request feature allows payers to efficiently manage recurring and non-urgent bills such as rent, loan amortizations and insurance premiums.

The Bills Pay function, on the other hand, allows customers to pay their bills such as electricity, water and telephone bills, even if the transaction accounts of the customer and the biller are with different payment service providers. The installation will allow for more efficient collection among billers.

As for direct debit, customers can better manage their recurring payments such as monthly rent by simply authorizing recipients to withdraw funds from the payers’ account. The installation allows customers to easily pay monthly bills such as rentals, depreciation, insurance, among others.

By the end of 2021, approximately 30.3% of total retail payments have shifted to e-payments or e-payments, moving closer to the goal of digitizing 50% of all transactions by next year.

Total electronic payments in terms of volume are over 20.1% in 2020, the first year of the pandemic. Lockdowns and mobility restrictions have enabled millions of Filipinos to switch to digital payments or online transactions.

In terms of value, 44.1% of total retail payments are in digital form, up from 26.8% in 2020.