BSP eyeing QR Ph use in transport sector

THE Bangko Sentral ng Pilipinas (BSP) is looking to expand the use of its quick response (QR) code payment system to the transportation sector.

In a draft circular, the policymaking Monetary Board approved the introduction of QR Ph through payment service providers without fees being charged to end-users.

A national QR code standard will be created through a collaborative effort led by the Payment System Management Body (PSMB). The process will involve consulting with PSPs, payment system operators and automated clearing house participants.

“PSPs play a crucial role in facilitating the movement of funds and enabling financial transactions within the economy,” the draft circular states.

“Thus, to support national development objectives, foster financial inclusion, stimulate economic activity, and align with regulatory goals for a safe, efficient, reliable and secure payment ecosystem, the Bangko Sentral urges the active participation of PSPs in strategic payment-use cases,” it adds.

Strategic payment-use cases should be “interoperable and align with the principles of Section 201 of the National Retail Payment System (NRPS) Framework.” These new use cases must be developed independently from existing ones.

Existing interoperable payment-use cases under the NRPS framework, however, cannot be converted into strategic payment-use cases.

The PSMB will ensure the effective creation and enforcement of rules, policies, procedures, and standards for strategic payment-use cases. This includes guidelines for accepting PSPs, withdrawing participating PSPs, and terminating the payment-use case, among others.

All related rules, policies, procedures and standards must be approved by the central bank, while the PSMB should report any changes to these documents and the list of participating institutions.

If a strategic payment-use case is terminated, the central bank said the PSMB must provide a justification and details of winding-down activities, subject to its approval.

While participation in the strategic payment-use case is “not mandatory,” the BSP, however, encouraged PSPs to join in the collective effort to enhance financial inclusion and stimulate economic activity.

“The Bangko Sentral will continuously explore offering incentives on a case-by-case basis, depending on the level of participation by the PSP in this initiative,” it said.

“These incentives may include, but shall not be limited to, waiver of or reduced supervisory and operational fees, public recognition, and publicity.”