The Department of Trade and Industry (DTI) has thrown its support behind the National Retail Payment System (NRPS) during the recent ceremonial signing of the Payment System Management Body (PMSB) Charter in Manila.
The PSMB will pave way for the creation of two e-retail payment systems – the PESO Net and InstaPay, which aim to provide ease of access to credit and spur the growth of the e-commerce industry in the country by providing safe, reliant and efficient online payment system.
“This continuous innovation by the Bangko Sentral ng Pilipinas (BSP) helps not the economy but more importantly the micro, small and medium enterprises (MSMEs) sector,” said DTI secretary Ramon Lopez.
The vision of the NRPS is to create a safe, efficient, and reliable electronic retail payment system that is interconnected and interoperable. It aims to fast-track the establishment of an effective electronic retail payment system, promote a “cash-lite” economy and ultimately improve the country’s economic competitiveness.
Digitizing retail payments is critical in the Philippines considering that 99% of payment transactions per month are done in cash, with businesses and individuals making only 1% and 0.3% electronic payments, respectively, according to a study done by the Better Than Cash Alliance.
E-commerce in the Philippines also makes up less than 1% of total commerce, a very low level compared to other Asean countries like Thailand, Vietnam and Indonesia which generate 4-5% e-commerce transactions.
The NRPS is positioned to facilitate the country’s transition from a cash-heavy to a cash-lite economy, eventually bringing material benefits for the government, the business and private sectors, even regular consumers and individuals – in terms of speed and efficiency of transactions, reduced costs, improved transparency, enhanced security, and expanded access to financial services.