The Securities and Exchange Commission (SEC) and the central bank have approved the merger of the nation’s two largest payment and clearing operators, creating a unified entity tasked with driving growth in digital transactions in the country.

BancNet Inc. and the Philippine Clearing House Corp. (PCHC) announced in a statement on Tuesday, June 2, that they received regulatory clearance to combine operations, with BancNet acting as the surviving corporate entity.

The Bangko Sentral ng Pilipinas (BSP) previously authorized the transaction earlier this year. Effective June 1, the merged company began operating under the new corporate name Payments Network of the Philippines Inc. (PNPI).

The consolidation creates a singular, systemic infrastructure manager for the nation's financial transactions. The central bank had previously designated both organizations as Operators of Designated Payment Systems under its National Retail Payments System framework.

To maintain market continuity, PNPI will retain the well-known “BancNet” brand for its automated teller machine network, while the “PCHC” name will remain intact for traditional check clearing operations. 

The merger aims to eliminate redundancies and accelerate the central bank’s ongoing digital transformation agenda, which seeks to shift a massive share of retail payments into electronic channels. Prior to the consolidation, the two entities managed separate critical pipelines. BancNet operated the real-time, low-value electronic fund transfer service InstaPay, which processes instant transactions up to ₱50,000.

PCHC managed PESONet, a high-value batch clearing system designed as an electronic alternative to checks, alongside the Philippine Domestic Dollar Transfer System and the Payment-versus-Payment system.

Bringing these functions under one roof is expected to enhance operational efficiencies, boost technical resilience against outages, and promote greater interoperability among the country's commercial banks, thrift banks, and rapidly growing financial technology platforms.

Nestor V. Tan, BancNet chariman, said the consolidation was a transformative milestone toward a future-ready national payments system.

He noted that by pooling their respective technological strengths and institutional expertise, PNPI would be better positioned to deliver enhanced value to banks, businesses, and retail consumers alike.

The unification comes at a time when the government is aggressively pushing for financial inclusion. Regulators believe a centralized, highly efficient clearing operator will lower transaction friction and operating costs for participating financial institutions.

Joseph A. Gotuaco, PCHC chairman, said that PNPI will focus on strengthening the safety and reliability of electronic processing, which is vital to the broader economy.

He added that the company plans to work closely with regulators and industry stakeholders to advance secure and inclusive payment systems across the country.