THE Bangko Sentral ng Pilipinas (BSP), through Monetary Board Resolution 1400 on Dec. 5, 2024, lifted the moratorium on new Electronic Money Issuers from Non-Bank Financial Institutions (EMI-NBFIs) to boost digital payments and expand financial services to underserved communities nationwide.
“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,” BSP Deputy Governor Mamerto Tangonan noted in a statement.
This will open doors for new players in the digital payments space, provided they meet stringent requirements designed to ensure robust market entry, Tangonan said.
The BSP will require data-driven applications and ask applicants to present evidence-based market studies that demonstrate a clear value proposition. Applications must also detail innovative business models, target unserved or niche markets, and leverage new technologies.
“Applicants must meet the standard licensing criteria, which include an assessment on the transparency of the ownership and control structure, suitability of shareholders, fitness and propriety of directors and senior management, adequacy of capital, and presence of appropriate risk management system,” Tangonan explained.
“Only applications that meet the standard licensing criteria … shall be accepted for processing,” he added.
To recall, the BSP extended the moratorium in 2023 until Dec. 15, 2024. The initial two-year moratorium in November 2021 was imposed to manage resources, ensure financial stability and encourage the growth of innovative e-money solutions.
The Philippines currently has 44 BSP-licensed EMI-NBFIs, with four additional applications under review through the sandbox framework.
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