Apple Pay and Google Pay are exploring the possibility of entering the Philippine market, but must first register with the Bangko Sentral ng Pilipinas (BSP) as operators of payment systems (OPS), a central bank official said.
BSP Deputy Governor Mamerto Tangonan confirmed that both tech giants have initiated discussions with the central bank, signaling a potential step toward offering their digital payment services locally.
"They're exploring, and we had a discussion on their activities. It was clear to us that they are—when you touch the payment system, you are an operator of payment systems," Tangonan told reporters on Dec. 2.
The central bank considers entities that perform such activities as operators of payment systems. "Therefore, they need to register. That's the guidance we provided to them," Tangonan explained.
The BSP defines operators as entities managing or supporting payment system operations, including clearing, settlement, and maintaining system frameworks. Entities engaged in OPS activities must register with the BSP as mandated by the National Payments Systems Act (NPSA).
Tangonan noted that neither firm has formally applied for BSP registration, a process that could take about a month before their services become available.
"From their responses to us, the way they explain, it's clear to us that they touch the payment system. They perform something. So, therefore, they are operators," Tangonan said.
"We don't license them. We just require registration. They can provide the service (once they're registered)," he added.
According to Tangonan, registration is the only requirement since the firms are not merchants and do not handle users' funds.
He said service providers might already be working on filing their applications. "You'd have to ask them. You never know, maybe they are already doing it," he suggested.
In 2023, digital payments accounted for over half (52.8 percent) of retail transactions, surpassing the 50 percent target set in the six-year Digital Payments Transformation Roadmap.