The Bangko Sentral ng Pilipinas (BSP) has issued guidelines for the electronic submission of reports and documents by all operators of payment systems (OPS) engaged in merchant payments.
In a memorandum (BSP Memorandum No. M-2024-037) signed by BSP Deputy Governor Mamerto E. Tangonan on Dec. 10, OPS engaged in or intending to engage in merchant payment acceptance activities (MPAA) will be required to electronically submit all necessary reports to the BSP.
This is part of the six-month transitory provisions of a July 2024 circular approved by the Monetary Board.
Non-bank OPS engaged in MPAA and merchant acquisition must submit reports including a certification of compliance and a gap assessment.
Bank-controlled OPS engaged in MPAA must electronically submit a gap assessment covering provisions on payment to merchants, pricing mechanisms, and other reporting requirements.
OPS involved in merchant acquisition must also submit a notice of MPAA and other required documentation to the BSP.
Reportorial requirements include audited financial statements, statistics related to MPA, a list of delisted merchants, notice of significant changes, and notice of change in average monthly value of collected funds transferred to merchants
According to the BSP guidelines, "Report submissions that do not conform with the prescribed format and procedures shall not be accepted and will be considered non-compliant with the existing reportorial requirements subject to applicable penalties for delayed, erroneous, and/or unsubmitted reporting under Section 103 of the Manual of Regulations for Payment Systems."
In July, the BSP approved the regulatory framework for MPAA to expand the use of digital payments in the country.
Merchants are defined as physical or electronic retailers, service providers, billers, and businesses that accept payments for goods and services. BSP Circular No. 1198 defines a merchant as an end-user that avails of MPAA.
MPAA is defined as a set of services provided to a merchant to receive payment for the sale of goods and services. This activity also includes merchant acquisition services, which involve the processing of payment transactions and the transfer of funds to the merchant.
By approving the new circular, the BSP enables merchants to accept different forms of payment for goods and services. This is "vital in facilitating the smooth flow of funds in the economy and contributing to the wider adoption of digital payments in the country."
The BSP stated that for digital payments to thrive, the minimum standards and good practices established in the circular should safeguard the funds received from customers of merchants and protect the rights and interests of end-users who deal with OPS engaged in MPAA.
An OPS is defined as "any person who provides clearing or settlement services in a payment system, or defines, prescribes, designs, controls, or maintains the operational framework for the system." This typically includes business organizations such as sole proprietorships, partnerships, cooperatives, or corporations.