December 4, 2024 | 12:00am
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is in talks with tech giants Google and Apple over their potential entry into the Philippine payments system through Google Wallet and Apple Pay.
BSP Deputy Governor Mamerto Tangonan said discussions have taken place regarding compliance with regulatory requirements for operators of payment systems (OPS) in the country.
“They’re exploring, and then we had a discussion on their activities,” Tangonan said. “From their responses to us, it’s clear to us that they touch the payment system.”
“When you touch the payment system, you are an operator of payment systems. So, because of that, we deem them as operators of payment systems. Therefore, they need to register.”
Despite the exploratory discussions, Tangonan clarified that neither Google Wallet nor Apple Pay has formally applied for registration with the BSP.
Asked about the timeline for processing such applications, he said the registration process for OPS is straightforward and could be completed within a month.
“OPS is just a registration. You register and then you can render the service,” Tangonan said.
The BSP requires OPS registration as the primary regulatory step for platforms like Google Wallet and Apple Pay to operate in the Philippines.
The BSP defines OPS as entities that enable and maintain platforms for payments and fund transfers. The scope of OPS registration is extensive, encompassing not only BSP-supervised institutions but also other entities involved in the payments ecosystem.
OPS classifications include cash-in service providers, merchant acquirers, payment facilitators and gateways, platform providers, bills payment service providers as well as entities facilitating payments for goods and services.
There are currently 296 companies registered as OPS with the BSP.
Tangonan also noted that Google Wallet and Apple Pay have no additional requirements with the BSP beyond registration as these platforms do not hold consumer funds directly.
However, the payment services provided by these platforms will depend on their ability to connect with local banking systems.
“You need an account to debit – either a deposit account, a credit card account or an e-money account. Basta stored value account,” Tangonan added.
The potential entry of Google Wallet and Apple Pay has generated significant interest as consumers look forward to the convenience these platforms could bring.
The BSP’s proactive stance on engaging with global digital payment platforms aligns with its broader goal of promoting financial inclusion and innovation in the Philippines.
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