A Philippine digital payments startup backed by Chemonics International is emerging as a regional prototype for financial inclusion, as Southeast Asian regulators push for more interoperable and low-cost infrastructure.
Higala, which recently secured $4 million in seed funding, has built an open-source payments switch designed to connect banks, cooperatives, microfinance institutions and fintechs using ISO 20022 standards and Mojaloop technology.
The tool is meant to help small institutions offer real-time digital services without relying on expensive proprietary systems or a single national switch.
The model was developed with Chemonics International and Talino Venture Studios, pairing global development expertise with local tech venture building.
Industry observers say the approach is gaining attention because it addresses persistent gaps in markets where digital payments growth has been driven mainly by large institutions.
Despite the rollout of QR Ph and mainstream e-wallets, many Philippine rural banks and cooperatives still lack access to real-time payment infrastructure, and often face high fees and limited connectivity. Higala’s platform is designed to lower those barriers by providing low-cost interoperability and shared infrastructure.
Chemonics helped design the architecture, operational processes and governance structures behind the system, drawing on decades of work in financial inclusion and market systems.
Talino, meanwhile, anchors the commercial and technology development in the domestic market.
Early deployment shows traction. Higala has secured what it calls “Platform Bank” partnerships with several universal banks to support smaller financial institutions, and has already onboarded eight rural banks.
A new core banking product has also been launched to support institutions that need back-end modernization before they can join the switch.
The project is now in exploratory talks in Indonesia, Vietnam, Cambodia, Laos and parts of Latin America, where fragmented financial sectors and uneven digital capabilities mirror the Philippine landscape.
