BSP relaxes electronic payment licensing
Published Feb 23, 2019 12:00 am
By Lee C. Chipongian
The Bangko Sentral ng Pilipinas (BSP) has eased the licensing requirements for electronic payment and financial services (EPFS) but requires regulated financial companies to be interoperable and engaged with an automated clearing house (ACH).
MB file photo.
In a statement Friday, the BSP said the Monetary Board has approved the new streamlined licensing policy on EPFS with a “more vigorous drive for interoperability among the BSFIs (BSP-supervised financial institutions) to ensure a “highly efficient funds flow in the economy, supporting productive activities that fuel economic growth.”
ACHs such as InstaPay and PESONet was created under the BSP’s National Retail Payment System (NRPS) framework.
According to the BSP, relaxing the licensing requirements for EPFS will improve and increase the “safer and more efficient channels for delivering banking, payment, remittance, investment, and other financial services.”
“Under the enhanced EPFS licensing policy, the BSFIs that provide basic services or those that enable clients to access information on their deposit, loan, and other accounts (outstanding balance), or receive funds in electronic means shall simply notify the BSP within 30 days prior to the launch of those services,” said the BSP.
The BSP clarified the there will still be EPFS that will require BSP approval such as for advanced services which allow clients to transfer funds from one account to another and initiate other financial transactions.
The licensing requirement for these will have three steps: Self-assessment for compliance with the prudential criteria set out in the licensing framework; compliant BSFIs will submit a certification of compliance and request a confirmation of eligibility to offer EPFS; and submission of certain documentary requirements to eventually obtain an EPFS license.
All existing EPFS licenses will have to re-register with the BSP on March 31 such as those with previously licensed and operational EPFS as of March 31, 2019, and those that have been licensed but have yet to be launched until September 30 this year, said the BSP.
The BSFIs are also required to submit to the central bank periodic prudential reports “which are aimed at strengthening the BSP’s surveillance and supervisory mechanisms and ensuring the availability of information for policy development and other regulatory purposes.”
The NRPS was launched by the BSP in 2015. This was followed by the establishment of the industry-led PPMI, a stand-alone self governance structure run by payment industry participants.
The BSP announced earlier that it is planning to form three more ACHs to accelerate the shift to a cash-less digital payment system, targeted for 2020.
MB file photo.
In a statement Friday, the BSP said the Monetary Board has approved the new streamlined licensing policy on EPFS with a “more vigorous drive for interoperability among the BSFIs (BSP-supervised financial institutions) to ensure a “highly efficient funds flow in the economy, supporting productive activities that fuel economic growth.”
ACHs such as InstaPay and PESONet was created under the BSP’s National Retail Payment System (NRPS) framework.
According to the BSP, relaxing the licensing requirements for EPFS will improve and increase the “safer and more efficient channels for delivering banking, payment, remittance, investment, and other financial services.”
“Under the enhanced EPFS licensing policy, the BSFIs that provide basic services or those that enable clients to access information on their deposit, loan, and other accounts (outstanding balance), or receive funds in electronic means shall simply notify the BSP within 30 days prior to the launch of those services,” said the BSP.
The BSP clarified the there will still be EPFS that will require BSP approval such as for advanced services which allow clients to transfer funds from one account to another and initiate other financial transactions.
The licensing requirement for these will have three steps: Self-assessment for compliance with the prudential criteria set out in the licensing framework; compliant BSFIs will submit a certification of compliance and request a confirmation of eligibility to offer EPFS; and submission of certain documentary requirements to eventually obtain an EPFS license.
All existing EPFS licenses will have to re-register with the BSP on March 31 such as those with previously licensed and operational EPFS as of March 31, 2019, and those that have been licensed but have yet to be launched until September 30 this year, said the BSP.
The BSFIs are also required to submit to the central bank periodic prudential reports “which are aimed at strengthening the BSP’s surveillance and supervisory mechanisms and ensuring the availability of information for policy development and other regulatory purposes.”
The NRPS was launched by the BSP in 2015. This was followed by the establishment of the industry-led PPMI, a stand-alone self governance structure run by payment industry participants.
The BSP announced earlier that it is planning to form three more ACHs to accelerate the shift to a cash-less digital payment system, targeted for 2020.