In a bid to introduce a streamlined digital payment system in Pasig City, the local government and the Bangko Sentral ng Pilipinas (BSP) launched the Paleng-QR PH Plus program at the Pasig Mega Market on Friday, March 3.

The Paleng-QR PH Plus, created by the BSP and Department of Interior and Local Government (DILG), utilizes quick response (QR) code technology and digital devices as the primary mode of payment for daily small transactions in public markets, public transportation, and other retail sectors. It serves as an alternative to the traditional cash-based system of transactions.  

Pasig was chosen by the BSP as the first city in the National Capital Region (NCR) to launch the Paleng-QR PH Plus  program. 

Pasig City Mayor Vico Sotto, Vice Mayor Robert “Dodot” Jaworski Jr., and members of the 11th City Council led the program’s launch. 

Among the esteemed guests were BSP Governor Dr. Felipe Medalla and Deputy Governor Bernadette Romulo-Puyat; BSP Monetary Board Members (MBM) Eli Remolona Jr. and Peter Favila; DILG-Pasig City Director Visitacion Martinez, Former Senator and Department of Foreign Affairs (DFA) Secretary Alberto Romulo, and lone Congressman Roman Romulo. 

Also present at the event were City Administrator Atty. Jeron Manzanero, Pasig Mega Market Administrator Joey Molina, members of mega market vendors associations, and representatives from financial service providers (FSPs) such as Maya, Cebuana Lhuillier, Starpay, Landbank of the Philippines, GCash, and RCBC. 

According to Puyat, 2,100 out of 3,302 vendors in the Pasig Mega Market have been onboarded to the program. 

Sotto urged vendors and customers to embrace the program and this new technology, highlighting the financial inclusivity that the digital payment system offers to Pasigueños. 

"Kailangan po masanay tayo sa mga ganitong makabagong uri ng teknolohiya. Ang teknolohiya, hindi aatras. Araw-araw may bago, [at] kailangan naga-adjust, nakikisama, at nakikisabay tayo sa agos ng panahon (We have to get used to these new kinds of technology. Technology does not stop. Everyday, new technologies are created, and we have to adjust and keep up with the times)," Sotto said. 

He added that the Paleng-QR launch is the first step to many other improvements to the Mega Market that will be done throughout 2023 until 2025. 

The program was adopted firstly in the Mega Market since it is the center of the local economic center of Pasig. However, the local government is working towards implementing the program citywide. 

Vice Mayor Jaworski vowed that the City Council will do everything to make the implementation of the Paleng-QR PH Plus successful. 

Puyat and Martinez also expressed their 100 percent commitment to providing the Pasig local government with the necessary support for the program. 

Fast, accurate, secure payments

Paleng-QR aims to be a "quicker, more accurate, and safer" mode of payment for both customers and sellers. 

Through the Paleng-QR, payments are made at the exact amount, counterfeit bills or payment incidents can be prevented, long lines for financial transactions can be reduced, and the minimum health protocols against Covid-19 can be followed. 

Customers can scan the Paleng-QR code with their mobile phones using the application of their respective banks or e-money issuer. The payment for the services they availed will be transferred directly to the seller. 

The use of the e-money accounts and digital wallets enables individuals to build a financial footprint wherein all their digital financial transactions are recorded. 

Due to the program's partnerships with various FSPs, the public will also have more convenient access to financial services such as savings, loans, insurance, investments, and monetary assistance from the government. 

Local government units (LGUs) that want to implement the Paleng-QR must create their own ordinances in support of the program. The LGUs will organize an "Account Opening Day," where FSPs will install customer assistance booths to help vendors and drivers create and open e-money accounts. They will also give QR code printouts for target users. 

Gradual introduction, focus on market vendors 

City Councilor and Chairperson of the Committee on Trade, Commerce, and Industry Simon Romulo Tantoco emphasized the importance of the gradual introduction of the digital payment system to vendors in order to facilitate a more efficient implementation of the program. 

"We believe that when it comes to introducing change and technology, it is important to guide, educate, and introduce it to the people slowly," Tantoco said. 

He primarily authored Ordinance No.46, series of 2022, adopting the Paleng-QR PH Plus in Pasig, based on the Joint Memorandum No. 1, series of 2022 of the BSP and DILG. 

Tantoco noted that the local government is focusing on one sector first – the public market – instead of hitting three sectors (including the Tricycle Operators and Drivers Associations [TODA] and sari-sari stores) simultaneously, as originally intended. 

He said it is "easier geographically and logistically-wise" to integrate vendors in the QR system since they are confined to the Mega Market, unlike TODAs that are dispersed in different terminals and sari-sari stores that are scattered all over the city. 

In Pasig, the use of the Paleng-QR is encouraged and not mandated, he stressed. Cash payment options will remain in order to not pressure vendors and customers to join the program immediately. 

Upon discussions with market vendors, especially the Mega Market RTW Vendors Association, Tantoco added that the ordinance accepts rental payments made via direct digital payments. 

Benefits to BSP 

Medalla remarked that he is "very optimistic" about the implementation of the Paleng-QR in Pasig. 

He said the use of the QR code for digital payments will save money for the central bank. He cited the expensive costs of making coins, which circulate only a few times a year. 

"Because the payments are electronic, every merchant's flow of transactions can be seen. So the bank does not need collateral to offer loans," Medalla said. 

He highlighted that among the issues that still need to be addressed in the digital payment system is the interoperability between different FSP transactions. He said the Central Bank is aiming to eradicate the fees charged by FSPs, especially for small transactions.

Pasig is the third city that the BSP visited to launch the program; the other two were Baguio City and Davao City.