BSP Partners with DILG to Expand Paleng-QR Ph Program for Cashless Payments

The Bangko Sentral ng Pilipinas (BSP) recently inked a deal with the Department of the Interior and Local Government (DILG) in its effort to make digital payments more accessible for consumers and commuters. The joint memorandum circular focuses on the implementation of the Paleng-QR Ph program. This initiative enables grassroots-level businesses to accept digital payments, with the assistance of local government units (LGUs).

The BSP noted that Paleng-QR Ph boosts the utilization of cashless payments, especially in public markets and transport hubs. It, likewise, highlights the convenience for Filipinos to have online accounts when conducting day-to-day transactions. For their part, LGUs will be providing assistance for the onboarding of users. This entails organizing transaction account opening days with financial service providers. During the account opening days, financial service providers will set up customer assistance booths to aid users.

“The Paleng-QR Ph program underscores our firm belief that financial inclusion is a whole-of-nation undertaking and highlights the particularly crucial role of the local government units,” explained BSP Governor Benjamin Diokno. “By promoting QR Ph digital payments in all public markets and local transportation hubs across the country, the program aims to bring the welfare-enhancing benefits of digital finance innovations to our micro and small entrepreneurs, as well as the communities they serve.”

In this light, the central bank approved a standard QR payment technology. This makes the system interoperable and much easier to use. The BSP has also approved a number of digital banking licenses to expand the coverage of online payments across the country. The Paleng-QR Ph program is also expected to bolster the country’s economic recovery, according to DILG Secretary Eduardo Año.

“This ceremonial launching signals the start of our duty to disseminate this transformative initiative to our kababayans [countrymen] at the grassroots level as well as the private sector who will directly benefit from these guidelines,” Año elaborated. Under its Digitalization Roadmap, the BSP remains keen to digitalize 50% of payments and onboard at least 70% of the adult population to the formal financial system by 2023.

Source: ABS CBN