The passage of Senate Bill 1764 or the proposed Use of Digital Payments Act will streamline government payments and save government P5 billion annually.
But Senator Sonny Angara, author of the bill, said in a forum organized by the American Chamber of Commerce of the Philippines yesterday, while the proposal has garnered wide support, some concerns have also been raised.
These include the need for a transition period so that micro, small and medium enterprises will be able to adopt digital payments.
SB 1764 mandates the use of digital payment in the collection of taxes, fees, tolls, imposes, and other revenues, and in the payment of goods, services, and other disbursements.
Angara also said questions were raised on who should pay the transaction fees or merchant fees; issuance of electronic receipts, data privacy among others.
Angara also noted the importance of interoperability among the payment service providers to facilitate transactions.
The bill will facilitate release of cash aid which will also be directly transferred to the beneficiaries’ bank accounts.
In its position paper, the Joint Foreign Chambers and Philippine Business Groups aired its support to the measure, saying the shift to digital and cashless payments will enable government to save some $100 million or P5 billion annually.
They said that digital payments not only lower transaction costs, but are environment friendly and reduces resistance and barriers to more Filipinos owning financial transaction accounts.
The House of Representatives has already approved its own version of the measure in House Bill 8992 filed by Bataan Rep. Joet Garcia. – Irma Isip