Senators are moving to frontload passage of two measures promoting digital payments while at the same time boosting consumer protection against financial fraud.
This, as both the government and the private sector welcomed the promotion of digital payments as the way forward in providing Filipinos with a fast, safe and efficient way of making transactions in the country.
In filing Senate Bill (SB) 1764 or the Use of Digital Payments Act, Senator Juan Edgardo M. Angara affirmed widespread support for the adoption of digital payments for government and private transactions, “for as long as there are adequate safeguards in place to protect our people.”
At the same time, with a strong backing from the Bangko Sentral ng Pilipinas (BSP), Senator Sherwin T. Gatchalian pushed anew the passage of his bill protecting financial consumer welfare amid the increased adoption of digitalization of financial products and services in the country.
In welcoming the BSP’s support for Gatchalian’s Senate Bill (SB) 2287 or the proposed “Financial Products and Services Consumer Protection Act,” the Vice Chairman of the Senate Economic Affairs Committee expressed gratitude to the country’s central monetary authority for underscoring the significance of an enabling law that will safeguard the interest of financial consumers.
For his part, Angara affirmed that “instituting digital payments, particularly in all government agencies, offices and local government units, is consistent with the thrust to promote ease of doing business,” assuring this will also “go a long way in ensuring the efficient delivery of services to the people.”
“Consumers have experienced the convenience of making digital payments—be it for buying goods, the payment of services or their monthly bills. Now we want to provide Filipinos the option of doing the same for their transactions with the government so that physically going to and lining up at city hall or other offices will no longer be necessary,” Angara added.
He recalled that in the first committee hearing on SB 1764, government and private sector stakeholders provided inputs on the bill, that Angara assured will be taken into consideration in the committee report endorsing its plenary approval.
In turn, the National Economic and Development Authority (Neda) affirmed the Angara bill is in line with the strategies adopted in the Updated Philippine Development Plan 2017-2022 and the BSP’s “Digital Payments Transformation Roadmap 2023.”
For his part, Socioeconomic Planning Secretary Karl Kendrick T. Chua concurred in the adoption of digital payments as exceedingly significant in line with the need for contact-less transactions through financial technologies in transitioning to the new normal.
At the same time, BSP Governor Benjamin E. Diokno affirmed the objective of the bill is aligned with the BSP’s roadmap converting at least 50 percent of volume of retail payments into digital form and having at least 70 percent of Filipino adults on-boarded to the formal financial system by 2023.
Diokno agreed the bill can contribute to the improvement of the country’s status in the World Bank’s Ease of Doing Business Report by lowering transaction costs and reducing the time needed to transact with the government.
For his part, Commission on Audit Chairman Michael G. Aguinaldo added the use of various ICT platforms for digital payments in government operations will increase efficiency and decrease the room for corrupt practices through personal interactions with public officials.
Bureau of Internal Revenue Commissioner Caesar R. Dulay, in his turn, agreed the bill will make it easier for taxpayers to settle their taxes and fees.
In its position paper, the Joint Foreign Chambers and the country’s business groups also aired support for early passage of the bill projecting the shift to digital and cashless payments will enable government to save around some $100 million or P5 billion annually.
They added that digital payments not only lower transaction costs, but are environment friendly and reduces resistance and barriers to more Filipinos owning financial transaction accounts. For his part, Betur Inc. CEO Nuaman Mustafa expects the measure to fast track the development of the digital payments industry in the country and boost the reputation of electronic money issuers as a safe and convenient platform for all consumers. Betur is the operator of Coins.ph and licensed by the BSP as a remittance agent.
CIO Foundation Forum Inc. Chairman George C. Kintanar agreed the bill is considerably timely under the new normal, promotes fast and more orderly transactions and ensures greater transparency and security in government financial transactions.
Once enacted into law, SB 1764 mandates utilization 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 added the bill will also facilitate the transfer of government payments such as the cash aid provided to targeted recipients during the enhanced community quarantine by directly transferring the money into their bank or digital accounts.
For its part, the House of Representatives already approved its counterpart version embodied in House Bill 8992 filed by Bataan Rep. Jose Enrique S. Garcia III.
Source: https://businessmirror.com.ph/2021/09/13/senate-tackles-buffers-for-digital-transactions/