In line with President Ferdinand R. Marcos Jr.’s call for a digital shift in government services, the Department of the Interior and Local Government (DILG) is encouraging all local government units (LGUs) to adopt electronic payment and collection systems as a modern alternative to traditional cash transactions.

In a newly released memorandum circular, the DILG urged LGUs to start using digital platforms to collect local taxes, fees, and other charges — in accordance with Executive Order 170, series of 2022, which promotes digital payments in government dealings.

The department said digital payment systems offer major benefits: increased transparency, faster transactions, and greater convenience for the public. LGUs are encouraged to provide secure and accessible digital payment options, ensure user-friendly systems, and work with accredited providers, including government servicing banks. These efforts should align with the National Retail Payment System Framework and comply with the Data Privacy Act.

The DILG also reminded LGUs to establish clear procedures for issuing electronic invoices and billing statements, based on guidelines set by the Commission on Audit and the Bangko Sentral ng Pilipinas.