DILG Urges LGUs to Implement Cashless Payment Systems for Public Transactions

The Department of the Interior and Local Government (DILG) has urged local government units (LGUs) across the country to adopt digital payment systems for collecting local taxes, fees, and other government-related charges.

This move supports President Ferdinand Marcos Jr.’s push for full digital transformation in public services, and is aligned with Executive Order No. 170, s. 2022, which promotes the use of digital platforms in government transactions.

In a new memorandum circular, the DILG highlighted that electronic payment and collection systems (EPCS) enhance efficiency, transparency, and convenience for the public.

The agency advised LGUs to offer secure and user-friendly digital payment options and to collaborate with authorized financial institutions and government banks. They must also follow the National Retail Payment System Framework and comply with the Data Privacy Act.

LGUs are expected to establish clear procedures for issuing digital invoices and billing notices, in coordination with the Commission on Audit (COA) and the Bangko Sentral ng Pilipinas (BSP).

However, the DILG emphasized that traditional payment methods, including cash, must still be available. It also encouraged LGUs to pass ordinances that support the broader implementation of cashless payment systems.