BSP, PPMI expand digital payment options

The Bangko Sentral ng Pilipinas (BSP) and the Philippine Payments Management Inc. (PPMI) have launched three new digital payment services aimed at making electronic transactions more accessible, convenient and efficient as the central bank pushes to deepen financial inclusion.

Unveiled during a ceremony at the BSP headquarters on Wednesday, the new services — Direct Debit PH, InstaPay Cash-In and InstaPay for Business — are designed to strengthen the country's interoperable digital payments ecosystem.

Under Direct Debit PH, customers can authorize billers to automatically collect payments from their bank accounts on scheduled due dates, eliminating the need for manual payment processing.

Making it more digital

"What Direct Debit does is it really introduces a better way, and makes it more digital, for you as payers to settle your recurring payments more conveniently by simply setting up a mandate," said Carlo B. Nazareno, interim chairman of the PESONet and Direct Debit PH Steering Committee.

Nazareno said Direct Debit serves as a modern alternative to postdated checks, which many Filipinos still use for recurring bill payments. Customers authorize regular payments by giving their bank a standing mandate, which they can revoke at any time.

"The real plan was to ensure that there is safety, first and foremost, with the payer by having them approve or activate the actual mandate before anything happens," he said. "And if I set up that mandate and I'm no longer happy with that service, I can cancel that mandate with my bank any time."

InstaPay Cash-In and Insta-Pay for Business

Also launched by the BSP and PPMI is InstaPay Cash-In, which allows users to request funds from another person, who can then transfer the requested amount directly from a bank or e-wallet account.

Likewise introduced was InstaPay for Business, which increases the maximum transfer limit for registered businesses to P500,000 per transaction from P50,000, allowing firms to make larger digital payments through the InstaPay network.

The BSP said the new services are intended to make digital payments easier, faster and more convenient for both individuals and businesses.

BSP Deputy Governor Mamerto E. Tangonan said the launch reinforces the central bank's commitment to building an inclusive, interoperable payment system anchored on the National Retail Payment System (NRPS) Framework.

Payment system

"This launch reaffirms the BSP's commitment to build a payment system for every Filipino, and every Filipino business, no exceptions. This started with the National Retail Payment System Framework, which is the blueprint for a safer, faster, more reliable and interoperable payment system," Tangonan said.

The BSP and PPMI reminded the public that the original QR Ph system was split into two services in 2024.

QR Ph now refers to person-to-merchant (P2M) payments, where merchants shoulder transaction fees, while InstaPay QR is used for person-to-person (P2P) fund transfers, which may be subject to transaction fees depending on the account used.