State-owned Land Bank of the Philippines (LandBank) is set to distribute cash aid faster to poor households and process financial transactions of all clients digitally using the QR code technology developed by its new partner Traxion Pay.
LandBank on Wednesday said it signed a memorandum of agreement with Traxion Pay on 9 May to integrate the latter's technology into the cards.
"Traxion’s technical expertise will be invaluable in the implementation of our plan to integrate QR code functionality into our cards to facilitate convenient, seamless, and secure cash disbursements, especially under the government's social amelioration programs," LandBank president and chief executive officer Lynette Ortiz.
Under the Conditional Cash Transfer Program of the Department of Social Welfare and Development, over 6.5 million households receive monthly subsidies for food, education, and health needs of their members.
QR codes
Apart from the cash aid, LandBank said the QR codes will allow its clients to fulfill person-to-person and person-to-merchant payments.
Under their agreement, LandBank added it will be delivering products to over 200 partner cooperatives of Traxion Pay.
"With Traxion's end-to-end phygital banking and payment solutions, LandBank can leverage the latest advancements in hybrid technology to serve all customer types, across generations, and locations," Traxion Pay founder and chief executive officer Ann Cuisia said.
Phygital is a method of doing business using physical facilities that feature digital tools the customers can use to experience faster service.
Business cost reduction
"The extensive technology deployed will reduce the cost of doing business, extend LandBank's agency banking activities," she added.
Traxion Pay's partners will join cooperatives, associations, rural banks, local government units, and micro, small and medium enterprises under the LandBank Kasama Program.
Through this program, LandBank can provide cash withdrawals, cash deposit, fund transfers, bills payment, and balance inquiry to clients at the phygital units of LandBank Kasama partners.