BSP Grants 6 New Non-bank Electronic Money Issuer (EMI) Licenses

The applications of six entities to secure licenses to operate as non-bank electronic money issuers (EMIs) were recently approved by the Bangko Sentral ng Pilipinas (BSP) despite the institution imposing a two-year moratorium on the issuance of licenses just last December. The central bank has since reported that, currently, 42 non-banks have been granted EMI licenses, which is higher compared to the 36 licenses it granted at the end of 2021.

Once an entity obtains an EMI license, it will be allowed to provide money transfer or remittance services and other similar digital financial services. Before the BSP’s moratorium took effect on December 16, 2021, around 36 applications were submitted for EMI licenses — half of which were rejected for lack of information and requirements.

The BSP, likewise, had earlier approved policy measures in November with regard to the handling of applications of non-banks to operate as EMIs in an effort to foster financial stability, inclusive growth, and the development of digital financial solutions. BSP Governor Benjamin Diokno furthered that interested new non-bank EMI applicants may request an exception through the Test-and-Learn or Regulatory Sandbox framework, so long as their proposals involve new business models, new technologies, or targeted niches.

As part of its Digital Payments Transformation Roadmap, the central bank has also targeted to convert 50% of total retail transactions to digital channels while also boosting the number of Filipino individuals with bank accounts to 70%, all by 2023. The stability of the Philippine payments system continues to be upheld as well through Circular 1135 — which details guidelines on the settlement of e-payments under the National Retail Payment System (NRPS) framework — according to Diokno. “This is a key policy initiative toward encouraging the wider use of e-payment channels while ensuring that retail payment systems in the country operate in a safe, efficient, and reliable manner,” concluded the BSP Governor.

Source: PhilStar