The Bank of the Philippine Islands (BPI) expects its card products to be ready for tokenization by next year, positioning the Ayala-led lender for the anticipated local launch of Apple Pay and Google Pay.

Jose Teodoro Limcaoco, BPI president and chief executive officer (CEO), said the bank's preparation comes as global mobile payment providers actively begin discussions with Philippine banks to ensure broad market support before an official launch.

“We can be ready by next year,” Limcaoco told reporters last week when asked if the bank’s card products are prepared for tokenization and launch by 2026.

“Banks have to make sure their cards can be tokenized and ready for launch,” Limcaoco said. BPI’s card products cannot be configured for tokenization before the end of 2025.

While BPI could already be equipped by next year, Limcaoco believes the mobile payment providers would proceed with their launch only if there are enough banks prepared for integration.

“Google Pay and Apple Pay, just like any major product, have to launch with enough support. It’s crazy if one of them launches with just one bank. So they want as many banks to participate,” Limcaoco said.

Limcaoco, who also heads the Bankers Association of the Philippines (BAP), affirmed that member banks have already had talks with Google Pay and Apple Pay. He refused to disclose the launch plans of the payment providers, noting that they have different timelines.

According to the CEO, BPI will follow the launch plans of both payment providers. “It’s up to Google Pay and Apple Pay when they launch.”

Tokenization is a security process that replaces sensitive data, such as a customer’s card number or account details, with a unique digital identifier called a token. It strengthens security and fraud protection by enabling digital and contactless payments without exposing actual financial information.

Last August, the Bangko Sentral ng Pilipinas (BSP) clarified that Apple Pay and Google Pay will not be required to register as Operators of Payment Systems (OPS) before entering the Philippine market.

BSP Deputy Governor Mamerto Tangonan stated that the central bank classified the two global firms as Technology Service Providers (TSPs).

The exemption is based on their local operational model, which involves no fund holding or “wallet” functionality for Philippine users; transactions will occur directly through linked credit or debit cards using Near-Field Communication (NFC) technology.

The BSP stated that local financial institutions remain primarily responsible for the security and integrity of transactions.

The regulatory clarity from the BSP is expected to accelerate the launch of these services, given that digital payments already dominate local retail transactions, accounting for 57.4 percent of the total volume in 2024.