BSP urges LGUs to adopt cashless transactions

 

TAGBILARAN CITY, Bohol, (PIA) — The Bangko Sentral ng Pilipinas (BSP) is urging local government units (LGUs) to adopt cashless transactions. 

BSP deputy director for payments policy and development department Maria Christina Masangkay, said they are promoting digital payments as it allows everyone in the community to benefit from financial inclusion. 

BSP, together with the Department of Interior and Local Government (DILG), earlier issued Joint Memorandum Circular 1-2022 which outlined the guidelines for LGUs to participate in the Paleng-QR PH program. 

Launched in 2019, the Paleng-QR PH works as a person-to-person or person-to-merchants exact payment system. 

The program aims to promote the adoption of digital payments in wet markets and public transport and help vendors and consumers feel safer in their financial exchanges. 

“QR PH is the national QR code standard that allows fast, low-cost methods to pay, transfer and get funds from other banks and electronic money (e-money) accounts in the country,” Masangkay explained during the recent Media Information Session conducted by BSP in Bohol. 

QR code or the Quick Response code is a two-dimensional image-based barcode capable of holding large amounts of information, which can be read by a smartphone that is equipped with a barcode scanner.

With personal and financial information stored in the bar code, a QR code can be used to send and receive money as transaction payments.  

“Over the years, BSP has regulated systems so that the un-banked can have accounts, use digital payments in basic deposit accounts, use e-money, regulate cash agents like pawnshops and convenience stores to also act as cash-in, cash-out points for clients,” Masangkay continued. 

Only 14 LGUs in Central Visayas have so far adopted the Paleng-QR PH program, including Tagbilaran City in Bohol. 

Promulgate ordinances

Under JMC 1, LGUs can promulgate ordinances on the use of QR Ph-enabled digital payments in public markets and public transport. 

It also calls on vendors and transport operators to display the QR codes in their stores and vehicles for the customers who wish to pay digitally. 

Markets and vehicles covered by the program shall carry a standard Paleng-QR Ph banner and other information materials. 

LGUs with participating financial service providers will provide the necessary assistance to small merchants, tricycle operators, drivers, and clients in opening a QR Ph-ready transaction account by issuing relevant documents to support the “know your client” requirement of financial service providers. 

The QR PH is also aligned with Europay-Mastercard Visa Company (EMVCo), a consortium that manages the EMV standard, a globally used security technology for payments. (RAHC/PIA7 Bohol)