January 6, 2025 | 12:00am
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has lifted its moratorium on applications for new electronic money issuers for non-bank financial institutions (EMI-NBFIs), effective Dec. 16, 2024.
“The BSP’s decision to lift the moratorium aims to promote digital payments, enhance financial inclusion, and foster innovation that could serve a wider segment of the market,” the central bank said in a memorandum signed by BSP Deputy Governor Mamerto Tangonan.
The BSP’s decision reflects its commitment to broadening access to digital financial services, particularly for underserved segments of the population. By reopening the application process, the BSP seeks to attract innovative business models and technologies that address specific market needs.
In line with this directive, the BSP is encouraging prospective applicants to submit well-researched and data-driven proposals.
“The application must present insights on the planned business model and target market, through evidence-based market study to increase its value proposition in the industry,” the BSP said.
Applicants must also comply with the BSP’s stringent licensing requirements, which include transparent ownership and control structures as well as suitability assessments for shareholders, directors and senior management.
Application requirements must include adequate capital provisions and robust risk management systems.
The BSP will prioritize applications that incorporate new business models, target unserved markets or leverage emerging technologies. Only submissions that meet these criteria will be accepted for processing.
The lifting of the moratorium marks another step in the BSP’s broader agenda to modernize the country’s financial landscape. It follows a series of regulatory measures aimed at fostering an enabling environment for digital innovation while maintaining the integrity and stability of the financial system.
Popular EMI-NBFI players include GCash operator G-Xchange Inc., Maya Philippines Inc., Alipay Philippines, CIS Bayad Center, among others.
In November 2021, the BSP announced a two-year moratorium on the issuance of EMI licenses to NBFIs to ensure that its resources are managed and mobilized judiciously in a manner that promotes financial stability and inclusive growth, as well as advances the development of innovative electronic money solutions that offer strong value propositions.
However, the central bank extended the ban to Dec. 15, 2024 from Dec. 15, 2023.
As of September 2024, the BSP has issued licenses to 42 EMI-NBFIs and 27 EMI-banks. Licensed EMIs provide money transfer or remittance services using electronically stored money value system and similar digital financial services.
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