At least 180 local government units (LGUs) nationwide have formally adopted the Paleng-QR Ph initiative, a joint effort by the Department of the Interior and Local Government (DILG) and the Bangko Sentral ng Pilipinas (BSP) to promote digital payments in local markets and transportation.
Launched in 2022 under DILG-BSP Joint Memorandum Circular No. 01, the Paleng-QR Ph Program aims to digitize transactions among small-scale vendors and transport operators.
It is part of the National Strategy for Financial Inclusion 2022–2028 and aligns with President Ferdinand Marcos Jr.’s directive to foster inclusive and sustainable economic development, particularly at the grassroots.
The program encourages the use of QR Ph — a standardized quick response (QR) code developed by the BSP — for transactions in public markets, sari-sari stores, and among tricycle drivers and daily commuters.
By using QR codes through mobile banking apps or e-wallets, small business owners and consumers can make and receive payments securely and efficiently, with no need for physical cash.
According to the BSP, QR Ph supports interoperability, meaning users can transact across participating banks and e-money issuers. It is currently enabled for both person-to-person and person-to-merchant payments.
Of the 180 LGUs onboarded as of July 2025, five are in Metro Manila, 127 are in Luzon, 33 in the Visayas and 15 in Mindanao. These LGUs have either formally launched the program or issued ordinances and executive orders supporting its implementation in their respective jurisdictions.
The DILG, in coordination with the BSP, continues to provide technical assistance to LGUs. This includes training on digital account onboarding, implementation of cashless payment systems, and financial literacy sessions for public market vendors and transport groups.
The move to cashless transactions is also seen as a way to minimize health risks associated with handling physical currency, a concern magnified during the Covid-19 pandemic.
Moreover, digital payment histories may help microentrepreneurs build credit profiles, making it easier to access loans and other financial services from banks and lending institutions.
Paleng-QR Ph has been rolled out in major cities such as Baguio, Davao, Tagbilaran, and Naga, serving as early adopters and models for other LGUs.
The BSP has expressed confidence that with continued LGU participation, digital payments will soon become the norm across the country’s public markets and transport systems.