Higala, the country’s pioneer inclusive instant payment system, has extended its seed funding round to $2.8 million, expanding support for the mid-July launch of its platform that aims to accelerate the digital payment boom.
In a briefing on Tuesday, March 18, Higala announced that it had sealed funds from startup builder Talino Venture Studios and Singapore-based venture capital firm 1982 Ventures.
Higala Chief Executive Officer (CEO) Winston Damarillo said the funding will benefit the startup’s vision to build a robust ecosystem that includes an instant payment system and a platform bank.
He added that this includes “an extensive network of collaborators who are all committed to improving financial system resilience and accelerating the adoption of digital banking.”
Higala’s platform banking, in particular, will enable smaller banks and other financial institutions to offer digital payment services.
This would serve as a gateway for banks that were traditionally excluded from participating in instant payment systems that have grown popular in the country.
Damarillo said another funding round, within the range of $10 million to $15 million, will follow the July launch to scale up Higala’s operations.
Since its introduction last year, Higala has been expanding financial access to different parts of the country by adding more rural banks, thrift banks, commercial banks, and electronic money issuers to its growing network.
It aims to address the on-ramp barrier that has prevented smaller financial institutions from participating in interoperable payment systems such as InstaPay.
Higala also intends to lower the cost of real-time payments, with plans to impose ₱0.75 for the underlying switch cost on banks, allowing them more elbow room for wider margins.
Rizal Commercial Banking Corp. (RCBC) recently partnered with Higala to provide the core technology for SynerFi—an open payments platform that provides smaller banks access to digital payments.
So far, Higala has announced an initial 40 banks in its network. These banks are concurrent participants in RCBC’s SynerFi service and ATMGo network.
Damarillo said the goal by the end of the year is to cover 60 percent of the market.
However, he admitted that they are being considerate about certain risks, namely regulations, concerns with the public’s adoption, and the current political situation.
In particular, the political climate—with former President Rodrigo Duterte recently arrested due to alleged violations of human rights—is a concern but has “not affected the industry yet.”
Built on Mojaloop technology—an open-source instant payment system supported by the Bill & Melinda Gates Foundation—Higala continues to collaborate with partners RCBC, Xendit, FinTech Alliance PH, and the Rural Bankers Association of the Philippines (RBAP).