USAID/E-PESO ACTIVITY 4 Annual Report

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USAID/E-PESO ACTIVITY

4th Annual Report October 1, 2017 – September 30, 2018

Submission Date: October 30, 2018

Prepared for the United States Agency for International Development by Chemonics International Inc. under Contract No. AID-492-

C-15-0001. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for

International Development or the United States Government.

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CONTENTS ACRONYMS ..........................................................................................................................................................3

EXECUTIVE SUMMARY..........................................................................................................................5 1. PROGRAM OVERVIEW AND INTRODUCTION ..........................................................................7

2. ACTIVITY IMPLEMENTATION PROGRESS .....................................................................................9

2.1 Implementation Status ............................................................................................................................9

2.2 Implementation Challenges ................................................................................................................. 42

2.3 PMP Update ........................................................................................................................................... 45

2.4 Progress Narrative ............................................................................................................................... 45

3. INTEGRATION OF CROSSCUTTING ISSUES and USAID FORWARD PRIORITIES .......... 54

3.1 Gender Equality, Female Empowerment, and Disability Action ................................................... 54

3.2 Policy and Governance Support ........................................................................................................ 55

3.3 Public Private Partnerships (PPP) ....................................................................................................... 55

4. STAKEHOLDER PARTICIPATION AND INVOLVEMENT ........................................................ 56

5. MANAGEMENT AND ADMINISTRATIVE ISSUES ...................................................................... 56

6. LESSONS LEARNED ........................................................................................................................... 58

7. PLANNED ACTIVITIES FOR NEXT QUARTER INCLUDING UPCOMING EVENTS ........ 59

ANNEX 1: Press Coverage and Mentions ..................................................................................................... 62

ANNEX 2: Summary of Results to Date by Key Indicator ......................................................................... 63

ANNEX 3: Institutions with PESONet and/or InstaPay-enabled Products.................................................82

ANNEX 4: Institutions Connected to PESONet’s and/or InstaPay’s (CSO)............................................ 83

USAID/E-PESO 4th Annual Report 3 3

ACRONYMS

ACH Automated Clearing House

AFCS Automated Fare Collection System

AML Anti Money Laundering

ATM Automated Teller Machine

BAP Bankers Association of the Philippines

BIR Bureau of Internal Revenue

BSFI BSP Supervised Financial Institutions

BSP Bangko Sentral ng Pilipinas

BTCA Better Than Cash Alliance

BTMS Budget and Treasury Management System

CAS Computerized Accounting System

CDA Cooperative Development Authority

CDI Cities Development Initiative

COA Commission on Audit

DBM Department of Budget and Management

DBP Development Bank of the Philippines

DICT Department of Information and Communications Technology

DILG Department of Interior and Local Government

DOF Department of Finance

DOTr Department of Transportation

DSWD Department of Social Welfare and Development

DTI Department of Trade and Industry

EBPLS Electronic Business Permitting and Licensing System

EFT Electronic Fund Transfer

EIU Economist Intelligence Unit

EMI Electronic Money Issuer

EPB Electronic bills payment

ERC Energy Regulatory Commission

ETRACS Enhanced Tax Revenue Assessment and Collection System

G2P Government to Person

GPH Government of the Philippines

HDMF Home Development Mutual Fund

IFAO Inclusive Finance Advocacy Office


LBP Land Bank of the Philippines

LGU Local Government Unit

MOA Memorandum of Agreement

MOU Memorandum of Understanding

MSME Micro, Small, and Medium Enterprises

NATCCO National Confederation of Cooperatives

NBSFI National Baseline Study on Financial Inclusion

NGA National Government Agency

NMIS National Meat Inspection Service

NRPS National Retail Payment System

P2G Person to Government

PCHC Philippine Clearing House Corporation

PFG Partnership for Growth

POS Point-of-Sale Device

PPMI Philippine Payments Management Inc.

PPP Public Private Partnership

PRC Philippine Regulation Commission

PSA Philippine Statistics Authority

PSMB Payments System Management Body

QR Code Quick Response Code

RBAP Rural Bankers Association of the Philippines

SGM Settlement Guarantee Mechanism

TSP Tax Service Provider

TWG Technical Working Group

USAID United States Agency for International Development


EXECUTIVE SUMMARY

The USAID/E-PESO Activity is a USAID/Philippines program that seeks to accelerate the shift of the

Philippine economy from cash to digital payments for broad‐based economic growth and financial

inclusion. It supports the objectives of the U.S.-Philippines Partnership for Growth with

Equity (PFGE), which focuses on addressing binding constraints to achieve sustained, more inclusive

economic growth. E-PESO also contributes to USAID/Philippines’ goals in democracy, rights and

governance as the expansion of digital finance systems contribute to greater accountability, reduced

corruption and exclusion of the poor, and better opportunities of good governance, particularly at the

local level. E-PESO aims to work with the public and private sectors to grow the share of e-payments

from 1% at the beginning of the Activity to 10% of the total volume of domestic retail payments

transactions by year 2020.

Using the market systems approach, USAID/E-PESO’s strategy to achieve its goal is to (1) improve the

enabling environment for e-payments; (2) support the expansion of e-payments infrastructure; (3)

drive e-payments usage by government and businesses, and; (4) expand e-payments adoption in USAID

partner cities.

Fiscal Year (FY) 2018 (Project Year 4), which ended on September 30, 2018, has been a very

productive year for E-PESO, despite project funding uncertainties prevailing until the first half of the

year, i.e. until March 2018. Thereafter, and in accordance with USAID’s guidance, E-PESO has

broadened from a focus on primarily economic growth to a more comprehensive set of activities

across democracy and governance that demonstrate how an expansion of digital finance lays the

groundwork for stronger, more accountable and more inclusive institutional systems.

During the period, USAID/E-PESO has made great strides towards achieving its desired outcomes.

Under Component 3 on improving the enabling environment for e-payments, USAID/E-PESO helped

achieve unprecedented and game-changing reforms in Philippine retail payments. In November

2017, the BSP issued circular 980 on the adoption of the National Retail Payments

System (NRPS) Framework, restructuring the domestic payments industry to foster more

cooperation, efficiency, reliability, safety, interoperability and inclusiveness in the retail payments

system. Now, not only are the large local banks represented in the governance, but all

financial institutions of varying sizes participating in the reformed retail payments system are as

well. In January 2018, the BSP entered into an agreement with the Philippine Payments Management

Inc. (PPMI), designating it as the Payments System Management Body (PSMB), the self-regulating

organization that forms part of the governance structure as specified in the NRPS Framework. To

enable real-time inter-bank payments in the country, the BSP issued circular 1000 in April 2018. BSP

also issued various memorandums to ensure reliability, accessibility and affordability of e-

payments. USAID/E-PESO supported all these reforms by providing advisory services on global good

payments practices, conducting research, fostering public-private dialogues and consultations and

implementing information, education and communications (IEC) campaigns to promote awareness on

the NRPS.

On expanding e-payments infrastructure, USAID/E-PESO’s work contributed to the launch of the

batch and real-time inter-bank electronic funds transfer payments services through the PESONet and

InstaPay automated clearing houses (ACH) in November 2017 and April 2018, respectively. Similarly,

USAID/E-PESO’s support in these historic and vital e-payments services came in the form of providing

advisory services, arranging public-private dialogues and conducting a PESONet IEC campaign.

Moreover, to aid the financial institutions in delivering demand-driven e-payments products, USAID/E-

PESO conducted the demand-side payments baseline study and market research to inform their

product design, development and marketing strategies. As of the end of September 2018, PESONet

is being offered by 46 banks processing more than 550 thousand transactions per month for a total of


Php63.6 billion in value; growing by 75% in volume and 35% in value since its launch in November

2017. For InstaPay, it is available in 32 banks and non-banks processing more than 58 thousand

transactions a month for a total of Php679 million in value.

Ongoing activities on expanding e-payments infrastructure include the setting up of an efficient and

inclusive bills payment service for use by government agencies, initially by the Bureau of Internal

Revenue and/or TradeNet, for tax and fees collection using PESONet and/or InstaPay, the

establishment of the cash in/out ACH to support government’s disbursements of social cash transfers,

and the adoption of a national standard for QR code to enable widespread merchant e-payments.

Digitalizing payments for government collections, especially person-to-government (P2G), business-

to-government (B2G), brings about higher collection efficiency and ease of doing business. Increasing

collection efficiency makes more funds available for the government to deliver more public goods and

services that the people need, e.g. social safety net programs, healthcare, education, agricultural

productivity programs, infrastructure, etc. Improving ease of doing business attracts more trade and

investments that generate more jobs and drive inclusive growth.

On driving e-payments usage in government and businesses, USAID/E-PESO worked with BIR to

launch online tax collections via the platforms of the major state-owned banks, Land Bank and

DBP, using the taxpayers’ accounts in these banks, as well as Visa/Mastercard credit and debit cards,

and Bancnet ATM/debit cards. Since its launch in October 2017 up to the peak tax collection period

in April 2018, there were a total of 95,705 e-payments tax collection transactions.

Aside from BIR, e-payments for collection of fees was also launched by the National Meat Inspection

Service with the Land Bank in October 2017. In both these accomplishments, USAID/E-PESO

contributed by providing product design support, project management and forging

partnerships between the government agencies and the state-owned banks.

USAID/E-PESO also conducted IEC using social media for BIR’s online tax collection. 63% of the total

population in the Philippines actively use social media. As such, USAID/E-PESO chose to augment

above-the-line awareness campaigns created by the government and the banks with a social media-

based campaign. Within just three months of rolling out the campaign, over 60 thousand saw the

posts, at least 36 thousand read the posts and over 14 thousand commented, shared, or liked

them. The social media campaign translated to over 39 thousand digital payment transactions. It

proved more cost-effective as the conversion cost was just a third of traditional awareness

campaigns.

Ongoing activities include the policy formulation, project management and technology support for BIR

to launch the Tax Software Provider (TSP) program where private fintech firms are enabled

and encouraged to take on the role of providing innovative and efficient electronic tax preparation,

filing and payment products in the market and convert more businesses from cash to electronic

payments of taxes. USAID/E-PESO is also completing the e-learning courses to assist the Department

of Budget and Management (DBM) in rolling out the Budget and Treasury Management System (BTMS)

to national government agencies (NGA) and paving the way to transition all NGA disbursements from

cash to electronic payments via PESONet.

On expanding e-payments adoption by CDI cities, USAID/E-PESO worked with the Tagbilaran City

LGU to launch e-payments collection of business permit fees in August 2018 with both Land Bank and

DBP. This was the result of our assistance to LGU resource planning system providers (e.g.

Rameses Systems Inc.) to incorporate e-payments collections in their products. Thus, other LGUs

who are using or will use these systems are already e-payments enabled without requiring additional

support from USAID/E-PESO. Furthermore, through USAID/E-PESO’s policy formulation and project

management support, Legazpi City LGU has passed a city ordinance institutionalizing e-payments

adoption in financial transactions with the LGU. Launch is scheduled in October 2018.


1. PROGRAM OVERVIEW AND INTRODUCTION

Program Name: USAID/E-PESO Activity

Activity Start Date and End Date:

March 18, 2015-March 17, 2020

Name of Prime

Implementing Partner: Chemonics International Inc.

[Contract/Agreement] Number:

AID-492-C-15-00001

Name of Subcontractors:

Leonine Initiatives

Laggui and Associates Mode Devi Publishing, Inc. CAI-STA Philippines Inc.

Major Counterpart Organizations

Bangko Sentral ng Pilipinas Department of Budget and Management

Department of the Interior and Local Government Department of Social Welfare and Development

Bureau of Internal Revenue

Philippine Payments Management, Inc.

Geographic Coverage

(cities and or countries) Philippines

Reporting Period: October 1, 2017 – September 30, 2018

The USAID/E-PESO Activity is a USAID/Philippines program supporting the objectives of the U.S.-

Philippines Partnership for Growth (PFG), which focuses on addressing binding constraints to achieve

sustained, more inclusive economic growth. USAID/E-PESO also contributes to USAID/Philippines’

goals in democracy, rights and governance as the expansion of digital finance systems contribute to

greater accountability, reduced corruption and exclusion of the poor, and better opportunities of

good governance, particularly at the local level.

With 98% of payment transactions in the Philippines taking place through cash, promoting a shift to

electronic payments (e-payments) represents unrealized potential to promote inclusive economic

growth and good governance. USAID/E-PESO partners with the Government of the Philippines (GPH)

and private sector actors to achieve a rapid, widespread increase in e-payment adoption and usage, as

well as increased financial transparency and accountability, and more efficient and more equitable

governance. Through program activities, USAID/E-PESO’s goal is for e-payments to account for 10%

of retail transactions by the year 2020.

To shift from a cash-based economy to an electronic-based economy, USAID/E-PESO supports the

development of a lasting, inclusive economic environment and sets the stage for new financial products

to enter the market that explicitly meet the needs of those striving to improve their lives. Enabling

access to electronic transaction accounts will provide the backbone needed to ensure that a majority

of Filipinos can use e-payments, which provide a secure and cost-effective means to access a full range

of payment and financial services and a system for transparent and traceable financial transactions. This

broader range of financial services can help Filipinos build assets, better withstand economic shocks,

and participate more broadly in the formal economy and increase the engagement of a wider Filipino

citizenry. e-Payments offer an improved ability to track financial flows in line with GPH’s thrust

towards greater transparency and accountability in financial transactions, and USAID’s objectives to

increase participation and reduce corruption.


USAID/E-PESO builds on the GPH leadership in promoting e-payments as a vehicle for expanding

financial inclusion. Recognized in 2014 by the Economist Intelligence Unit (EIU) as one of the global

leaders in promoting financial inclusion, the Philippines’ successful track record in deepening financial

inclusion mirrors worldwide trends: countries that institute national financial inclusion strategies tackle

poverty at a higher rate than those that do not. Leading the charge, the Bangko Sentral ng Pilipinas

(BSP)’s National Strategy for Financial Inclusion capitalizes on global trends and focuses heavily on

ensuring that most Filipinos can have access to electronic transaction accounts.

Over the life of the project, Filipinos will benefit from new, more affordable and innovative e-payment

products, an increased number of outlets through which to spend electronic money (e-money),

improved transparency and accountability in their transactions with government services, and a

stronger regulatory environment that protects consumers. The exponential growth in e-payments will

stimulate private sector investment and ensure that Filipinos have access to critical financial services

that set the stage for a more inclusive society.

To fulfill PFG goals and USAID/E-PESO objectives, the activity focuses on four components:

• Component 1: Rapid Adoption of E-payments in Financial Systems. Incentivizing

adoption of e-payments, the activity supports digitization of large-scale payment streams in

both the private and public sectors. USAID/E-PESO will provide technical assistance to GPH

agencies in improving their services by expanding the use of e-money and e-payments in

government-to-person (G2P), person-to-government (P2G), government-to-business (G2B),

and business-to-government (B2G) payments. USAID/E-PESO also works to bring the benefits

of digital payments to targeted businesses that have national reach or local impact, including

businesses such as those from the fast-moving consumer goods industry that have large retail

payment flows.

• Component 2: Infrastructure for E-payments Expanded. To increase the value

proposition to customers using e-payment instruments, USAID/E-PESO promotes

interoperability among the various digital finance products, services, and players (e.g. mobile

devices, ATMs, debit/credit and stored value cards, electronic fund transfers (EFT), banks, e-

money issuers, payment service providers, e-money agent networks, and other financial

service providers). USAID/E-PESO also supports the complex array of front-end and back-

end providers, backstopping them to connect users as well as reduce transaction and search

costs.

• Component 3: Enabling Environment for E-payments Improved. Building trust,

convenience, and security in e-payments, USAID/E-PESO supports the BSP in its initiative to

establish a National Retail Payment System (NRPS), intended to transform the fragmented

payments system into an interoperable and interconnected one. USAID/E-PESO provides

technical assistance as the BSP oversees the implementation of the NRPS. The activity likewise

provides technical assistance and training to support the BSP in promoting digital security,

consumer protection, e-payments confidence, financial inclusion, and e-payment stability

within the broader payment system.

• Component 4 (cross-cutting): E-payment Ecosystem Developed in Key Cities

Identified under USAID’s Cities Development Initiative (CDI). Promoting global

knowledge sharing of emerging trends, USAID/E-PESO identifies and addresses supply and

demand constraints inhibiting broader e-payment usage, including addressing policy and

regulatory gaps. USAID/E-PESO also supports the expansion of e-payment ecosystems with

focus on key cities identified under USAID’s CDI.


2. ACTIVITY IMPLEMENTATION PROGRESS

Implementation Status

SUB-PURPOSE 1: RAPID ADOPTION OF E-PAYMENTS IN

FINANCIAL SYSTEMS

Task 1.1: Facilitate Adoption of e-Payment Services in Government Agencies

The Better-than-Cash Alliance (BTCA) has identified three shifts on the journey towards “cash lite”

societies, namely, the bulk payer shift, the shift to electronic bill payment, and the shift for purchases1.

In the Philippine setting, government is the largest bulk payer institution disbursing social subsidies and

pension to persons (G2P) and paying suppliers and vendors (G2B), and the largest payment recipient

institution through taxes, fees and licenses, and mandatory payroll benefits collected from both

persons (P2G) and businesses (B2G). USAID/E-PESO continues to provide technical assistance to

government institutions that are key aggregation points for payments to maximize the effect of

interventions in achieving wholesale adoption of e-payments like the DBM, the Department of Social

Welfare and Development (DSWD), and the Home Development Mutual Fund (HDMF). By adopting

e-payments, these government institutions improve transparency, minimize corruption, increase

operational efficiency, and improve the delivery of services to their customers. As key aggregation

points, these government institutions have influence over a large customer or constituency-base and

can serve as catalyst in scaling adoption of electronic payments in the country.

Sub-task 1.1.1: Support DBM in Rolling-Out the BTMS (revised)

USAID/E-PESO is assisting DBM in the development of the e-Learning system that will train the users

of the Budget and Treasury Management System (BTMS), a government resource planning system that

will be used across national government agencies to manage and report on budget, commitments and

procurement, payments (including salaries), receipts, cash, and accounting. The BTMS is expected to

facilitate electronic financial transactions among government, suppliers, and contractors as

disbursements will eventually be coursed through PESONet, a new electronic fund transfer service

launched under the NRPS framework.

1 Country Diagnostics: Philippines, Better-than-Cash Alliance, 2015


Figure 1: Functions Supported by BTMS and Interfaces with Other Systems

The e-learning project will facilitate the rollout of the BTMS to all national government agencies

(NGAs) nationwide which supports GPH initiatives of improving public service, increasing integrity

and accountability and managing resources more effectively and efficiently.

The kick-off meeting for the BTMS e-Learning project was held on May 24, 2018. The work flow and

roadmap of the e-learning system, tasks of the technical teams, deliverables and resources were

discussed during the kick-off which was attended by USAID/E-PESO, DBM representatives, and

partner developer MoodLearning Inc. On June 22, 2018, MoodLearning presented the initial prototype

of the system. Comments and inputs to the prototype were discussed, including the proposed new

approach based on the flow of the new manual provided by DBM.

As of the end of September 2018, the Learning Management System (LMS), as well as selected e-

learning modules have been completed and are undergoing review and testing by DBM. The modules

include introduction, accessing the system, forms and user roles, and initial business processes such

as payroll, maintenance and other operating expenses, and semi-expendable items. The remaining e-

learning modules are expected to be completed and tested by the end of October 2018. The system

will be deployed to production and launched on November 5, 2018.


Figure 2: BTMS E-Learning Landing Page

Figure 3: Sample Content—Basic Solution Functionalities


Figure 4: Sample Content—Disbursement Voucher Workflow

Sub-task 1.1.2: Support a GPH Agency with Influence Over a Large Base – Pag-Ibig or SSS

The HDMF, more popularly known as the Pag-Ibig Fund, is a Philippine government-owned and

controlled corporation under the Housing and Urban Development Coordinating Council. It is

responsible for the administration of the national savings program and affordable shelter financing for

Filipinos employed by local and foreign-based employers. In 2016, Pag-Ibig Fund has 17.27 million

members, of which 12.51 million are employed in the country while 4.76 million are working abroad.2

In the same year, it has approved home loans amounting to Php72.46 billion to finance 93,383 homes

and disbursed short-term or multi-purpose loans amounting to Php45.8 billion to over 2.15 million

members.3

USAID/E-PESO is working with Pag-Ibig Fund for the use of e-payments for its disbursement and

collection functions. For its disbursement function, Pag-Ibig Fund disburses loan proceeds to members

for home construction and short-term loans, pays real estate developers for properties acquired under

its home loan programs, and pays government for applicable taxes to transfer home ownership to

borrowers. On the other hand, Pag-Ibig collects fund contributions from employers and voluntary

employees, and loan payments from borrowers.

USAID/E-PESO held several meetings with Pag-Ibig Fund to closely coordinate on e-payment initiatives.

On July 5, 2018, E-PESO Team met with Mr. Reynaldo Malaya, Vice-President and Head of the Financial

Services Cluster to update Pag-Ibig on the E-PESO initiatives, particularly on the PESONet facility. A

follow-up meeting was held with Mr. Jose Manalese, Manager of Treasury Department on August 28,

2018 to present proposed e-payment projects with Pag-Ibig, namely: (1) the Tax Software Provider

(TSP) Project, (2) the Electronic Bills Payment (EBP) Project, and (3) disbursements to developers,

suppliers and home loan borrowers through PESONet.

The TSP Project is being undertaken with the Bureau of Internal Revenue (BIR). Through the project,

taxpayers will benefit through the convenience of batch e-filing and e-payment of taxes due to the BIR

through their TSPs. Pag-Ibig Fund is one of the largest one-time tax transaction (ONETT) taxpayers

paying capital gains tax and documentary stamp tax arising from sale and transfer of real properties.

2 Annual Report, Home Development Mutual Fund, 2016 3 Annual Report, Home Development Mutual Fund, 2016


Through its TSP, Pag-Ibig Fund can automate the filling-out of tax forms and e-file in batches (as

opposed to e-filing individual tax returns). Pag-Ibig Fund files over 80,000 tax returns per year. Pag-

Ibig Fund is one of the pilot institutions for the TSP Project which will to go live in October 2018.

USAID/E-PESO is providing technical assistance to the Bangko Sentral ng Pilipinas (BSP) and the

Philippine Payments Management, Inc. (PPMI) to implement the EBP Project. Once operational, the

payment system will enable account holders of financial institutions participating in PESONet, InstaPay

and future ACHs to pay their Pag-Ibig Fund contributions and monthly loan amortizations through

their financial institutions’ online or mobile banking facility. Pag-Ibig Fund has committed to participate

as one of the pilot government biller institutions under the EBP Project.

Currently, the Pag-Ibig Fund disburses payments to real estate developers and suppliers through GPH’s

checkless payment facility with government servicing banks (GSB), also known as the Modified Direct

Payment Scheme (MDPS), or through checks if the payee has no account with the GSB. Disbursement

of loan proceeds to borrowers of home construction loans are done primarily through checks. Pag-

Ibig Fund will shift check payments to electronic fund transfer (EFT) through the PESONet service of

its GSB. USAID/E-PESO has organized meetings with the Development Bank of the Philippines (DBP)

and the Pag-Ibig Fund in October 2018 to discuss how to operationalize disbursements through

PESONet.

Sub-task 1.1.5: Support a GPH Agency with Influence Over a Large Base – Department of

Social Welfare and Development

The DSWD is the government agency under the executive branch responsible for the protection of

the social welfare rights of Filipinos and promotion of social development. DSWD is the GPH’s

implementing arm for its social subsidy programs such as the conditional cash transfer and

unconditional cash transfer programs.

GPH’s conditional cash transfer program, more popularly known as Pantawid Pamilyang Pilipino

Program (4Ps), is a human development program that invests in the health and education of poor

households. It provides cash grants to beneficiaries if they comply with the set of conditions required

by the program. There are currently over 4.8 million registered households under the program with

nearly 4.3 million active household4. In 2018, DSWD aims to serve 4.4 million households5 with a

budget of Php82 billion for cash grants6.

DSWD is also implementing unconditional cash transfer program of GPH, also known as the tax

subsidy program under the recently passed Tax Reform for Acceleration and Inclusion (TRAIN) Law

or R.A. No. 10963 which seeks to provide cash subsidies to 10 million indigent Filipino families or

individuals, including indigent senior citizens, to cushion the effect of the adjustments in the excise tax

of petroleum products and sweetened beverages.7 Each beneficiary will receive Php200 per month

for the first year of implementation and Php300 per month for each succeeding year and has a budget

in 2018 of Php24.5 billion for cash grants8. By end of July 2018, 5.6 million beneficiaries have already

received their Php2,400 cash grant for the whole year9.

USAID/E-PESO met with Assistant Secretary Leonardo Reynoso, National Program Manager for the

Pantawid Pamilyang Pilipino Program (4Ps) of the Department of Social Welfare and Development

4 Pantawid Pamilyang Pilipino Program, Program Implementation Status Report, Department of Social Welfare and

Development, 2nd Quarter 2018 5 Pantawid Pamilyang Pilipino Program, Program Implementation Status Report, Department of Social Welfare and

Development, 2nd Quarter 2018 6 General Appropriations Act 2018, Department of Budget of Management, 2018 7 Over 5.6M poor Pinoys receive tax aid under TRAIN law, Department of Social Welfare and Development, 2018 8 Memorandum Circular No. 03 Series of 2018, Department of Social Welfare and Development, 2018 9 Over 5.6M poor Pinoys receive tax aid under TRAIN law, Department of Social Welfare and Development, 2018


(DSWD) on July 17, 2018 to explore the resumption of USAID/E-PESO and DSWD’s joint project on

improving 4Ps beneficiaries’ access to financial services. In the meeting, USAID/E-PESO updated the

DSWD of the new electronic payment systems launched under the NRPS framework, namely the

PESONet and InstaPay electronic fund transfer services.

DSWD disclosed that there are already 2.2 million household beneficiaries that have received cards

(using Landbank’s cash card product) and are currently undergoing a re-carding program to comply

with the BSP-mandated migration from magnetic stripe cards to EMV chip cards. DSWD also shared

the issues they encountered while using Landbank’s cash card to distribute cash grants, particularly

the Commission on Audit’s (COA) audit findings like idle accounts, remaining balance on the cash card

(which may indicate wrong targeting), and multiple withdrawals (costing DSWD multiple transaction

fees). DSWD also emphasized the absence of financial institutions in the rural areas which forces

them to tap into conduits for manual distribution.

USAID/E-PESO met with the Land Bank of the Philippines E-Banking Group on July 3, 2018 for an

update on the Philippine government’s cash transfer programs which includes 4Ps, fuel subsidy under

the TRAIN law, and other programs. According to Landbank, as of July 2018, 1.4 million beneficiaries

(out of the 4.4 million 4Ps beneficiaries and 10 million tax subsidy program beneficiaries) have cited

the same constraints raised by DSWD which have limited their distribution of cash cards and

electronic disbursement to beneficiaries.

As a next step, USAID/E-PESO and DSWD will organize a meeting with the different stakeholders to

present and introduce new payment systems, identify issues or barriers that may hinder

implementation, and secure implementation commitments. The stakeholders will include the

Department of Finance (DOF), COA, and the different units in DSWD responsible for implementing

social subsidy programs, namely, the Social Pension Program, the 4Ps and support functions such as

Financial Management Services and ICT Management Services. The Bangko Sentral ng Pilipinas (BSP)

will also be invited to the meeting as a resource. In parallel, USAID/E-PESO will do a high-level policy

review (operating and financial management policies) to identify the policies that may be impacted by

the new payment systems and recommend revisions or adoption of new policies to enable electronic

payments at DSWD.

Task 1.2: Increase Private Sector Adoption of e‐Payments Sub-task 1.2.1: PESONet Marketing Communications Awareness Campaign

In Year 4, USAID/E-PESO developed and implemented the PESONet Marketing Awareness Campaign

to enhance the PESONet brand, increase demand-side awareness, and stimulate demand especially

among businesses and government. See Table 1 for stakeholders who are involved in the campaign.

Table 1: Stakeholders of the PESONet Marketing Awareness Campaign

Stakeholder Roles

USAID/E-

PESO

• Develop the proposed awareness campaign

communications plan including the specific activities to be

implemented by the various stakeholders

• Develop the content that can be used by the various

stakeholders in implementing communications activities


BSP • Be the PESONet advocate

• Participate and/or implement communications activities

(i.e. media briefing, be part of interviews, post articles in

BSP website, social media)

• Publish the fees charged by ACH participants to their

customers

Financial

Institutions

• Implement communications activities to feature pilot

users’ experience in utilizing PESONet payments in

accordance with the awareness campaign

communications plan (i.e. display agreed marketing

materials, participate in media briefings, be part of

interviews, update website, social media)

• Nominate pilot users who can share their experience and

testimonials on PESONet

PPMI • Collect and provide data to help monitor effectiveness of

the campaign

• Administrator of the PESONet Awareness Campaign

strategy and relevant materials for continuing PESONet

communications activities after campaign period (after

turnover from USAID/E-PESO)

The campaign was implemented in three (3) phases targeting the financial institutions, the enterprises

(corporate customers) and the general population (retail customers). The accomplishments are

outlined in Table 2.

Table 2: Accomplishments of the PESONet Marketing Awareness Campaign

Activities Outputs Target Market

Manuals and

Creatives • Communications Plan

• Social Media Playbook

• Communications

Guide

• Poster and Flyer (for

finalization)

Financial Institutions

Financial Institutions and

their customers

Digital

Assets • Landing Page

(www.pesonet.info)

• Facebook and

Instagram Accounts

(@PESONetPH)


their Corporate and Retail

Customers


PR

Activities • Stories in print

newspapers and online

news portals

• PESONet Media

Forum (August 7,

2018)

• Interview with Gov.

Nestor A. Espenilla Jr.

on ANC’s The Boss

(aired September 6,

2018)

• Radio interview with

BSP’s Mary Rose

Contreras on DZIQ

“Banner Story with

Jake Maderazo and

Arlyn Dela

Cruz” (September 25,

2018)


their Corporate and Retail

Customers

The figure below shows social media (Facebook) marketing performance. Facebook followers grew

by 32% from July to August and 15% from August to September – significantly higher than the target

of 5% month-to-month increase in followers expected. Engagement rate from July to September,

which measures the followers’ reactions, comments and shares to the posts has been above the 7%

target.

Figure 5: Metrics for @PESONetPH Facebook Account

2,774

3,650

4,205

769

1,685 1,808 27.72%

46.16%43.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jul-18 Aug-18 Sep-18

Social Media Metrics

No. of Followers Engaged Users Engagement Rate


Below is a sample image displayed in the @PESONetPH Facebook and Instagram accounts:

For the landing page performance (www.pesonet.info):

• Total of 8,803 organic visits since July 1, 2018. Organic searches increased from 46% to 62%.

Keyword search used is “PESONet” and PESONet Website”. This indicates that there is

increased awareness and interest in PESONet;

• Mobile visits account for 82.62%;

• Highest source of referral traffic is from Inquirer.net article “Businesses to Benefit from

PESONet”;

• Additional 26 backlinks (i.e. mentions of the website from other web pages)


Figure 6: Traffic Sources for PESONet landing page (www.pesonet.info) from July to September 2018

Figure 7: Profile of Visitors to the PESONet landing page (www.pesonet.info) from July to September 2018

0% 10% 20% 30% 40% 50% 60% 70%

Organic Search

Social Media

Referral (PR Stories)

Direct Search

YTD Traffic Sources for Landing Page

Sep-18 Aug-18 Jul-18

80% 78%75%

20% 22% 25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Jul-18 Aug-18 Sep-18

YTD New vs Returning Visitors

New Returning


Below is a sample screenshot of the PESONet landing page:

The following achievements resulted from the PR activities (as of end August 2018):

Table 3: PR Activities Achieved during the PESONet Marketing Awareness Campaign

Story Print Online Social

Media Broadcast

Media

Value

(in PhP

millions)

Businesses

to Benefit

from

PESONet

4 9 51.247

A Look at

E-

payments

in the

Philippines

4 4 5.593

Low-cost

Fund

Transfers

with

PESONet

2 15.193

Post

Event:

Media

Forum

8 22 8 3 40.913

Others:

Special

Feature

5 1 112.336

Total 23 35 8 4 225.281


Below is a photo from the PESONet media forum conducted on August 7, 2018. It was covered by

print newspapers, online portals, television stations and business and technology influencers:

From left to right – Unionbank Executive Vice President John Cary Ong, BTI Payment Systems Managing Director Dan Ibarra, Philippine

Payments Management Inc. (PPMI) Chairman Justo Ortiz, BSP Governor Nestor A. Espenilla, Jr., BSP Payment Systems Oversight

Department (PSOD) Director Raymond Estioko, Lazada Philippines Vice President for Finance Jonathan Bates and Citibank Treasury

and Trade Solutions Head Arlene Nethercott.

Sub-task 1.2.2: Integration of Tax Software with e-Payments Functionality for

Businesses to File and Pay Taxes

Bureau of Internal Revenue (BIR)/ Tax Software Provider (TSP) Certification Program

The BIR electronic tax filing and payment solutions certification project started the final quarter of the

year primed for advancement, following the completion of several foundational activities. These

included the issuance of a Revenue Special Order creating a technical working group (TWG) to

implement the project; selection of sub-contractor CAI-STA to undertake the development and

deployment of the TSP enrollment, certification and testing system, and backend modules; and the

TWG’s sign-off on the policy for certification, process flows, and technical and functional

requirements.

Following the completion of these initial milestones, sub-contractor CAI-STA consulted and

interviewed key BIR personnel and participated in regular TWG meetings- where the process flow

and requirements were laid out - to draft the systems requirement specifications (SRS) document.

The SRS describes the essential technical requirements of the enrollment, testing, and certification

system, including the procedures and how the system will interact with external and internal users,

computer peripherals, or other computers. The SRS will be the basis for subsequent activities on the

project, i.e. the development of codes and test cases and will serve as the blueprint for the final

deliverables. When testing the system, the behavior will be compared against the expected behavior

as defined in the functional specifications.


The SRS document was reviewed during regular TWG meetings - with members providing feedback

and CAI-STA incorporating modifications - and underwent six iterations before being accepted and

approved in September. The sign-off of the systems specifications was significantly delayed because the

TWG recommended adopting a new solutions design.

In August, the BIR Taxpayer Service Systems Division (TSSD), the department leading the technical

requirements definition of the project, initiated an impact analysis and a comparative study of two

solutions for the authentication and validation of BIR forms submitted using tax filing and preparation

software of certified TSPs: 1) the Public Key Infrastructure (PKI) management and 2) the TSP tool

solution, which entails creating a stand-alone, executable file per BIR form to validate submitted data,

prepare extensible markup language (XML)10 files, compress and encrypt, and submit the files to the

BIR form database. The tool will handle the loading, validation, preparation, encryption, compression

and submission of files.

The study showed the security risk inherent with the PKI management solution, including the solution’s

pre-condition of providing the BIR’s tax identification number (TIN) algorithm and file transfer

protocol credentials to the TSPs for TIN validation. The TSSD recommended adopting the TSP tool

solution to replace the PKI management solution. However, implementing the TSP tool requires

additional manpower as each form requires the development of a library and executable file. Given

the resources, not all of the BIR’s 36 eBIR forms will be made available. The TWG drew up a list of

18 priority forms that TSPs can initially apply for. The TWG selected forms that will be made available

for certification based on the following considerations: (1) forms currently being used by clients of

TSPs who indicated interest in pilot testing the certification; (2) forms that are used by the Home

Development Mutual Fund (HDMF) One-Time Transaction (ONETT) filing; and (3) forms that are not

impacted by the Tax Reform to Accelerate Inclusion (TRAIN) law.

CAI-STA is completing the systems development and preparing to conduct the user acceptance test.

In parallel, the TWG is reviewing and finalizing the draft revenue memorandum order (RMO), which

lays out the policy, guidelines, and procedures for the use and deployment of the system.

USAID/E-PESO also completed the procurement for a production server that will be used to deploy

the system into production. After putting out a request for quotation in August and assessing the

submitted bids, USAID/E-PESO awarded the contract to First Data Corporation, who met or

exceeded all minimum technical specifications and offered the lower total price. The Bureau of Internal

Revenue was consulted during the drafting of the server specifications and verification of the technical

specifications submitted by offerors.

SUB-PURPOSE 2: INFRASTRUCTURE FOR E-PAYMENTS EXPANDED

Task 2.2: Strengthen Back-End e-Payment Infrastructure

Sub-task 2.2.1: Support Government Agencies in Participating in TradeNet

USAID/E-PESO is working with the BSP, through its Payment System Oversight Department (PSOD)

and Inclusive Finance Advocacy Office (IFAO) for the establishment of an Electronic Bills Payment

(EBP) service that can be utilized by government institutions to collect revenue (fees and taxes) from

individuals and private institutions. The initiative promotes trade and investment, supports the anti-

10 Extensible Markup Language (XML) is a markup language used to describe the content and structure of data in a document. It is a

simplified version of Standard Generalized Markup Language (SGML). XML is an industry standard for delivering content on the Internet.

Because it provides a facility to define new tags, XML is also extensible. https://docs.oracle.com/cd/E13222_01/wls/docs100/xml/intro.html#wp187575 accessed 03 October 2018

https://docs.oracle.com/cd/E13222_01/wls/docs100/xml/intro.html#wp187575


red tape good governance policy of GHP, and enhances ease of doing business. It also promotes

government operational efficiency and public service quality. Moreover, it will encourage more billers

from the private sector to adopt e-payment to collect revenues from their customers. Following are

the proposed strategies articulated by E-PESO to BSP for the EBP project:

• Focus on government agencies as billers

• Establish processes and standards that are applicable to most billers

• Encourage other billers currently not accepting EBP to participate

• Encourage current billers serviced by financial institutions to participate

USAID/E-PESO submitted a concept note on EBP to the BSP on July 31, 2018. The concept note

outlines the conditions of the very low adoption of e-payments for collecting revenues and the

underlying issues that limits adoption. To push the envelope, the concept note also presented a

recommendation to set-up a centralized billers registry which will host billers bank details and provide

validation service of payment reference number. The biller registry will provide service to existing and

future ACHs and allow any account holder from any participating financial institution to pay billers

acquired by another participating financial institution thereby creating one large network of billers and

payers. The centralized billers registry concept is aligned with the NRPS which allows a value-added

service (VAS) layer.

A series of consultative meetings with the BSP took place on August 30, 2018 and September 10, 2018

to discuss the concept note and brainstorm on the possible set-up of the EBP service. A discussion

note was submitted by USAID/E-PESO to BSP on September 24, 2018 to summarize the data gathered

through the initial consultative meetings and desk research and provide initial analysis to help expand

the discussion on the proposed EBP service. The discussion note outlined three (3) options, namely,

(1) setting up of a centralized billers registry as VAS that will provide the service to existing and future

ACHs, (2) setting up a new ACH specifically for EBP, and (3) using the existing credit push EFT without

any modification. A comparison was also presented given certain parameters (see Table 4:

Comparison of EBP Service Options).

Table 4: Comparison of EBP Service Options

Option 1:

Centralized Biller Registry

Option 2:

EBP ACH

Option 3:

Credit Push EFT

Aligned with

NRPS principles

Yes

Billers registry

should be a centralized service

No

Yes

Capability to scale

up or handle high

transaction volume

Yes Yes Yes

Cost effective to

industry—financially viable

to CSO, BSFI,

VAS provider,

biller

No

But subject to economies of scale

No

But subject to economies of

scale

Yes

Assumes no new infrastructure

investment

Customer

driven—addresses

customer needs

Yes Yes No

Does not provide

the validation feature needed to

ensure transaction


is accounted and reported

Changes to

existing clearing

rules

No No No

May need to

modify to allow inclusion of

additional

information (i.e. reference

number) in the

message and corresponding

handling

Maintains existing

business arrangements

(biller pays)

Yes

But may entail additional cost

(sender pays may

still be applicable depending on the

ACH)

Yes

But may entail additional cost

No

Sender pays

Open to broader

biller market (i.e., government,

utilities, small

billers)

Yes Yes No

Can’t handle billers with

complex reporting

requirement

Time-to-market No

Requires

development and investment

No

Requires

development and investment

Yes

Given the available options, and advantages and disadvantages of each, USAID/E-PESO continued to

recommend Option 1 (Centralized Biller Registry) to BSP for the following reasons: (1) it addresses

the requirement of both payers and billers through a reference number validation feature; (2) as a

shared service it has economies of scale which can potentially bring down transaction cost as opposed

to each bank developing a system on its own; (3) it is faster to implement than creating a new ACH

just for bills payment; (4) it will utilize existing ACHs created under the NRPS thus help to increase

traffic and utility of the ACHs; and (5) it can be performed by existing providers operating in the

market shortening the time to market or promote it.

Parallel to the work with BSP, USAID/E-PESO is also working with government biller institutions that

will be tapped later as pilot biller institution in the newly created EBP service, namely the Bureau of

Internal Revenue (BIR), the HDMF and the Department of Finance (DOF) for TradeNet.

USAID/E-PESO met with the Information System Group (ISG) of the BIR on July 9, 2018 on BIR’s plan

to migrate certain taxpayer segments from its Electronic Filing and Payment System (eFPS) which is

operating beyond capacity and experiencing technical issues. Taxpayers using eFPS account for about

80% of total taxes collected by the BIR annually. Currently, the eFPS service is limited to the online

banking facility of authorized agent banks (AABs). With the recent launch of PESONet and InstaPay,

there is an opportunity to expand the e-payment options of taxpayers through these new payment

systems without the need for BIR to accredit new AABs. Taxpayers that will migrated from eFPS to

eBIR Forms will need a new facility that will enable them to use PESONet and InstaPay. Through the

EBP project, taxpayers will be able to pay BIR from any participating financial institution, beyond the

20 AABs that are connected to eFPS. The BIR has agreed to be the pilot for the EBP service.


In a consultative meeting on e-filing strategies held at the BIR on September 10, 2018, the different

units within BIR, namely, Collection Group, Large Taxpayers Service, Customer Support Service,

Regional Offices, and Information Service Group, agreed to limit the users of eFPS to large taxpayers

(LT), taxpayers under the taxpayer account management program (TAMP), and national government

agencies (NGAs). The BIR will issue a new regulation which will mandate the other taxpayers to shift

to eBIR Forms and pay using the EBP service which will be piloted with the BIR. There are currently

180,507 taxpayers mandated to use eFPS for tax filing and payment, out of which 177,130 have

enrolled, and 148,119 are using the system11.

Earlier, USAID/E-PESO participated in a meeting with the Bureau of Treasury (BTr), the BIR, the BSP

on July 2, 2018 to discuss the viability of PESONet to be utilized for BIR tax collections. It was

concluded that BTr does not need to issue an approval to BIR in the event it will utilize PESONet for

tax collections provided that the process with comply with TSA framework (credit to TSA is on T +

1). PESONet is compliant with this rule since transactions are cleared and settled on the same day.

BIR and BTr will have to review current online tax collection processes and guidelines and rationalize

policy requiring tax collection through AABs.

E-PESO also met and agreed with HDMF on July 5, 2018 and August 28, 2018 for HDMF to participate

as one of the pilot government institutions in the EBP service for its collections, namely: (1) collection

monthly contributions from individual/voluntary members and from private institutions, and (2)

periodic home loan and short-term loan amortizations.

In a meeting with BSP's IFAO, BSP shared its plan to recommend to the National Strategy for Financial

Inclusion (NSFI)'s Steering Committee that one of the flagship projects for 2018 should be digitizing

government payments, including disbursements and collections. USAID/E-PESO discussed its

proposed initiatives to assist the government agencies and the financial institutions to incorporate

government collections in the electronic funds transfer ACHs such as PESONet and InstaPay. It was

agreed that BSP will organize a meeting with USAID/E-PESO and the Department of Finance (DoF) on

the possibility of implementing e-payments for TradeNet.

Sub-task 2.2.2: Support Payments Industry Participants in Establishing Agent Cash In / Cash

Out ACH (revised)

Sub-task 2.2.3: Support Payments Industry Participants in Establishing QR Code Payments

ACH (added)

In July 2018, BSP announced its intention to issue a circular requiring the payments industry to establish

a unified QR code standard to ensure interoperability.

In the same month, USAID/E-PESO provided to the BSP and the PPMI inputs on the industry’s considerations in evaluating the QR code vis-à-vis the establishment of a new ACH. Inputs covered (1) when a new ACH for QR may be unnecessary, (2) when a new ACH, not necessarily specific to QR, may be necessary, and (3) when a new ACH for QR codes may be necessary. As of September 2018, the PPMI has put together a QR Code Working Group to include members from banks and non-banks. USAID/E-PESO will determine with the PPMI what assistance may be required.

SUB-PURPOSE 3: ENABLING ENVIRONMENT FOR E-PAYMENTS

IMPROVED

11 Bureau of Internal Revenue, 2018


Task 3.1: Ease Constraints to Broad Payment Adoption and Usage

Sub-task 3.1.1: Launch Interoperable Batch Inter-Bank Electronic Funds Transfer (EFT) in the

Market

The PESONet ACH was launched at BSP's Assembly Hall on November 8, 2017 with 33 institutions

signing on to the PESONet ACH Agreement. The PPMI Chairman, Mr. Justo A. Ortiz, presented the

signed ACH Agreements to BSP Governor Nestor A. Espenilla, Jr. More than 280 guests attended the

PESONet Launch, mostly CEOs and senior representatives from the payments industry, government

institutions and private sector. The Department of Finance, Department of Trade and Industry and

USAID gave statements of support during the event. A live demonstration was made by Unionbank of

the Philippines on how the bank developed a product utilizing PESONet to initiate electronic funds

transfer transaction to another bank.

Leading up to the launch, USAID/E-PESO participated in the PESONet ACH working group as an

observer and provided inputs to the clearing rules and the clearing agreements by putting forward

recommended rules for consideration. USAID/E-PESO likewise managed the event together with BSP’s

internal team and shouldered the cost of the PESONet ACH Launch.

Representatives of the financial services industry together with BSP Governor Espenilla, members of the Monetary Board and BSP Deputy Governors.

By September 2018, participation grew to 60 signed PESONet ACH participants, although only 46 are

currently connected to the CSO and receiving PESONet transactions. See figure below on the number

of institutions who make PESONet-enabled services available on their online and mobile channels.


Figure 8: Number of PESONet ACH Participants in Terms of Receiving and Sending Functionalities

The figure below illustrates PESONet volume and value growth from November 2017 to August 2018.

Since PESONet’s launch on November 2017, PESONet volumes and values have increased by 74.85%

and 38.48% respectively.

Figure 9: PESONet Volume and Value Growth from November 2017 to September 2018

In terms of PESONet volumes and values vs. checks, for the period November to December 2017,

PESONet volumes and values accounted for 2.47% and 1.68% of check volumes and values

respectively. From July to August 2018, these have grown to 3.58% and 1.95% respectively. The two

figures below show comparative volumes and values of checks vs. PESONet.

41 42 4346

19 21 22 24

37 8 9

0

10

20

30

40

50

Mar 2018 Jul 2018 Aug 2018 Sept 2018

PESONet ACH Participants and Availability on Online Channels

Receiving Internet Mobile

0

10

20

30

40

50

60

70

80

0

100

200

300

400

500

600

700

Val

ues

in P

hP

bill

ion

s

Vo

lum

es (

in t

ho

usa

nd

s)

PESONet Volumes and Values

Volumes (in thousands) Values (in PhP billions)


Figure 10: Checks vs PESONet Values from January 2017 to August 2018

Figure 11: Checks vs PESONet Volumes from January 2017 to August 2018

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Jan - Feb'17

Mar - Apr'17

May - Jun'17

Jul - Aug'17

Sep - Oct- '17

Nov - Dec'17

Jan - Feb'18

Mar - Apr'18

May - Jun'18

Jul - Aug'18

Checks vs PESONet Volumes (in thousands)

Checks PESONet

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jan - Feb'17

Mar - Apr'17

May - Jun'17

Jul - Aug'17

Sep - Oct -'17

Nov - Dec'17

Jan - Feb'18

Mar - Apr'18

May - Jun'18

Jul - Aug'18

Checks vs PESONet Values (in PhP Billions)

Checks PESONet


Sub-task 3.1.2: Launch Interoperable Real-Time Inter-Bank EFT in the Market

USAID/E-PESO supported the BSP and payments industry in establishing the InstaPay ACH by

providing recommendations on the clearing rules and clearing agreements. InstaPay, the real-time low

value ACH was launched on April 23, 2018 at the BSP. InstaPay was another of BSP's priority ACHs

along with PESONet. The launch, dubbed as InstaPay Go Live, featured a keynote address delivered

by Gov. Nestor A. Espenilla, Jr., and a video on InstaPay as well as a Fund Transfer demonstration

featuring BDO, China Bank, AUB, Equicom Savings Bank and Paymaya. PPMI's President, Mr. Abraham

Co delivered a response on behalf of the payment industry expressing their support for this new ACH

and committing to actively market it to their clients. A press briefing with Gov. Espenilla, BSP's Deputy

Director and Head of Payment System

Oversight Department (PSOD), Mr.

Raymond Estioko, President and CEO

of PayMaya, Mr. Orlando Vea,

President of PPMI, Mr. Abraham Co

and President and CEO of Landbank,

Mr. Alex Buenaventura, was

conducted immediately after the

launch. Attendees were presidents

and/or senior executives from BSP

Supervised Financial Institutions

(BSFIs).

For the launch, there were a total of

seven (7) institutions with the

capability to send and receive InstaPay transactions and 12 other institutions enabled to receive

InstaPay transactions. By September 2018, participation grew to 50 signatories of the InstaPay ACH

Agreement and 32 active participants, 14 of which offer InstaPay-enabled products on their online

channels. The figure below shows InstaPay volume and values from April to August 2018.

Figure 12: InstaPay Volume and Value Growth from April 2018 to September 2018

0

100

200

300

400

500

600

700

800

900

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

Val

ues

in P

hP

mill

ion

s

Vo

lum

es

InstaPay Volumes and Values

Volumes Values


Task 3.2: Assist Financial Regulators in Overseeing e-Payment Growth

Sub-task 3.2.1: Establish the Payment System Management Body (PSMB)

On January 12, 2018, BSP signed the Memorandum of Agreement (MoA) with the Philippine Payments Management Inc. (PPMI) at the Executive Lounge, Executive Business Center in BSP. Governor Nestor A. Espenilla, Jr. signed the MoA on behalf of BSP while PPMI Chair Justo A. Ortiz signed on behalf of the PPMI.

As part of its technical inputs to the BSP on the NRPS framework, USAID/E-PESO included specific

provisions on the creation of the payment systems management body (PSMB), which were reflected

in BSP’s circular. USAID/E-PESO likewise provided inputs to the charter that was approved by the BSP

and incorporated in the signed MoA. In BSP Circular No. 980, Subsec. X1205.4/41205Q.4/4705S.4/4605P.4/4805N.4 NRPS key principles, BSP refers to a payment systems management body (PSMB) as the industry-led governing body that will provide sound governance to the retail payment system under oversight from BSP. The MoA is the formal recognition of the PPMI as the country's PSMB such that any BSP supervised financial institution (BSFI) who wishes to participate in clearing must join the PPMI. Further, any other entity cannot form and govern the retail payment system, as BSP only recognizes the PPMI.

MoA signing between BSP and the PPMI including BSP Governor Nestor A Espenilla, Jr. members of the Monetary Board, Deputy

Governor Chuchi G. Fonacier and Deputy Governor Maria Almasara Cyd N. Tuaño-Amador, Board of Directors of the PPMI, PPMI

General Manager, Members of BSP’s NRPS Team, representatives from USAID Philippines and USAID/E-PESO.

As of September 2018, PPMI has a total of 74 members or 13% of the total number of BSP

Supervised Financial Institutions (BSFIs).

Table 5: Members of PPMI

BSP Supervised Financial

Institutions

Total

Number PPMI Member

Universal / Commercial

Banks

43 41 (95%)

Thrift Banks 55 17(31%)

Rural Banks 461 11 (2%)

Electronic Money Issuers

(EMIs)

11 5 13%)

Total 570 74 (13%)


To continue strengthening the PSMB, on May 29, 2018, USAID/E-PESO submitted to the PPMI a report on “Recommendations on Setting Up a PSMB”. The report included the following:

• Discussion of PPMI's Role and Establishment • Differences Between Historical and PPMI Structures • Transitioning Existing Governance Arrangements to the PPMI • Suggested Action Plan for PPMI Establishment

The report contains recommendations to assist the PPMI to operationalize and perform its role as the

duly recognized PSMB as prescribed in Circular No. 980. USAID/E-PESO continues to provide inputs

to the PPMI and the BSP on the implementation of various NRPS-related issues through emails, calls

and meetings.

Sub-task 3.2: Support BSP in Issuing Circulars and Regulations to Remove Constraints and

Encourage Healthy Competition in the Industry

The NRPS-related regulations that were issued by the BSP from October 2017 to September 2018

are outlined in the table below.

USAID/E-PESO provided payments expertise to the BSP in identifying some of these regulations,

specifically Circular Nos. 980 and 1000 through inputs during onsite meetings and discussions.

USAID/E-PESO also submitted formal reports to the BSP in the earlier years of the project that were

used as basis for some of these circulars.

Table 6: NRPS Related Regulations Issued by BSP

Regulation Issuance Date

BSP Circular No. 980 - Adoption of National

Retail Payment System (NRPS) Framework 06 November 2017

BSP Memorandum No. M - 2018-12 - Guidelines

on the National Retail Payment System (NRPS)

Key Principles and Specific Rules Applicable

thereto

23 March 2018

BSP Memorandum No. M-2018-013 - Disclosure

of Fees on Electronic Payments Pursuant to

Circular 980

28 March 2018

BSP Circular No. 1000 - Guidelines on the

Settlement of Instant Retail Payments 23 April 2018

BSP Memorandum No. M-2018-021 - Frequently

Asked Questions on Anti-Money Laundering -

related

concerns on the adoption of National Retail

payment systems

Framework

10 August 2018

BSP Memorandum No. M-2018-026 - Availability

of InstaPay and PESONet in all existing electronic

delivery channels

04 September 2018

On June 14, 2018, USAID/E-PESO submitted to the BSP a report on “Final Recommendations on NRPS Implementation Strategy”. The report includes the following:

• Summary of previous reference documents provided


• Recommended actions to be taken by the BSP (regulatory related actions, BSP actions relative to the PPMI)

• Implement additional Secured Settlement Accounts (SSA) • Clarifications on Circular No. 1000 • Provide training on payment system principles and governance structure • Communication clarity on various roles • Definitional basis for circulars • BSP internal actions • Shift government payments to electronic payments

Task 3.4: Assist Financial Regulators and e-Payment Service Providers to Improve Digital Security Measures Sub-task 3.4.1: Support BSP in Digital Security Policy Review and in Capacity Building

The technical assistance to the BSP through the Core IT Specialist Group (CITSG) on Digital Security

Policy and Governance commenced in November 2017.

The following reports have been submitted to the BSP:

• Report on the Recommendations of Leading Standards on Security Policies for Regulatory

Purposes

• Gap Analysis on the Assessment of BSP Digital Security Policy Areas vis-a-vis the Recommended

Leading Standards

USAID/E-PESO conducted training sessions for BSP which included representatives from Core IT

Services Group (CITSG), Information Technology (IT), General Examination Department, and the

National Retail Payment System (NRPS) team. These training sessions were:

• Securing and Auditing the Cloud Environment


• Security of ATM and Online / Mobile Banking Environment and Other Emerging Channels

• Basic Concepts on Payment Card Industry Data Security Standard (PCI-DSS)


• Cybersecurity Essentials and Cybersecurity Assessment Framework

USAID/E-PESO likewise submitted to BSP's CITSG a Control Self-Assessment (CSA) questionnaire.

The CSA was distributed by BSP to 43 BSP Supervised Financial Institutions (BSFIs) representing a

sampling from the universal / commercial, thrift and rural banks and non-bank electronic money issuers

(NB-EMIs) to establish a baseline of their awareness and readiness for compliance to BSP's Circular

No. 982 on Enhanced Guidelines on Information Security Management. A total of 23 institutions

completed the questionnaire. The analysis of the responses will be submitted and presented in

November 2018.

Learning from the Philippine e-Payments Experience - Visit from USAID Rural Finance Initiatives Program

(RFI) Colombia

A delegation from the USAID Rural Finance Initiatives Program (RFI) in Colombia came to the

Philippines for a study group visit from April 9 – 14, 2018.

The purpose of the Rural Financial Inclusion Program (RFI) is to improve inclusive financial

intermediation in selected conflict areas to promote the provision of market-based rural financial

services for producers and micro, small and medium-sized enterprises. Through rural financial services,

the program aims to reduce the exclusion of certain sectors of the population and improve the

conditions for their economic growth, which are critical for reducing poverty and inequality, root

causes of the internal conflict. Taking financial inclusion to a massive scale in rural Colombia in support of RFI contract goals requires

the type of game-changing technology used by other countries like Kenya, India, Philippines, and China.

RFI has identified with the industry actors in Colombia the lack of interoperable platforms as a major

bottleneck to scaling digital financial services. In line with this, RFI identified two focus areas:


• Colombia’s financial intermediaries must be interconnected with each other to facilitate rapid,

low-cost, electronic transactions, starting with low-value transactions to reach RFI’s target

population at scale. This requires governance framework, commercial arrangements, technology

platforms and business processes to facilitate interconnectivity.

• Financial intermediaries must understand and develop digital financial services for their platforms,

designed for the needs and uptake of marginalized, rural Colombians.

The trip was expected to allow Colombian financial intermediaries to take advantage of the Philippines’

learning curve in successful digital platforms and products, to promote interoperable digital platform

and services in Colombia. Specifically, the trip hoped to facilitate technology and knowledge transfer

by examining:

• The Philippines’ functioning private switch(es) as part of an interoperable platform, including the

business model, policy environment, system infrastructure, and customer uptake factors to

facilitate rapid, low-cost, B2B, B2P, and P2P digital transactions on a massive scale;

• Innovations in digital financial products and services (loan, savings, insurance, and payments) to

take advantage of such an interoperable platform to drive inclusion.

In addition to the USAID COR, the study group included representatives from the project,

representatives from Colombian banks, microfinance institutions, cooperatives and the switch, ACH

Colombia. USAID/E-PESO arranged for meetings with the following institutions:

• Bangko Sentral ng Pilipinas (BSP) - with the Payment Systems Oversight Department (PSOD)

and Inclusive Finance Advocacy Office (IFAO)

• BancNet

• BDO

• Union Bank

• Rizal Microbank

• GCash / Mynt

• Paymaya / FINTQ

• Cantilan Bank

• NATCCO

BSP Payments Research

USAID/E-PESO presented to the BSP’s Monetary Policy Sub-sector (MPSS) Managing Director Mr.

Francisco G. Dakila, Jr., the results of the 2016 USAID/E-PESO Individual Payments Baseline Survey as

well as the objectives and status of the 2018 Institutional Baseline Payments Survey.

During the meeting, MD Dakila shared with USAID/E-PESO that BSP has decided to pursue a regular

National Consumer Payments Survey (which will include electronic payments component) to be led

by the MPSS. The MPSS requested for USAID/E-PESO technical assistance given that USAID/E-PESO

has the experience in conducting a similar survey.

USAID/E-PESO provided the questionnaires used for the Individual Payments and Institutional

Payments Baseline surveys to BSP. In consultations with MD Dakila’s team, USAID/E-PESO likewise

provided its observations and comments to BSP's draft National Consumer Payments Study (NCPS)

plan and questions. A separate one-day workshop for the representatives from the Economic

Research, NRPS and other teams who will be involved in carrying out the NCPS was also conducted.

USAID/E-PESO covered the different types of surveys that BSP can consider for its requirements, the

results of the 2016 National Household Baseline Survey. USAID/E-PESO also went over the key


activities that BSP can take into consideration as they finalize their project plan for the conduct of the

NCPS.

SUB-PURPOSE 4 (CROSS-CUTTING): GAPS IN BROADER

E-PAYMENT ECOSYSTEM ADDRESSED

Task 4.1: Build e-Payments Ecosystems in CDIs and Other Cities/Municipalities

Sub-task 4.1.1: Support Partner Local Government Units (LGUs) to Introduce and/or Enhance

and Promote e-Payment Options for Minimum Viable Products (MVPs)

Legazpi City

Following the Legazpi City Council’s hearing on the “Electronic Payment Systems Ordinance of the

City Government of Legazpi” and a public consultation on the ordinance conducted in June, Mayor

Noel Rosal signed City Ordinance 14-0010-2018 also known as “An Ordinance Adopting Electronic

Payment System in the City Government of Legazpi” in August. The signing of the ordinance paves the

way for formalizing the memorandum of agreement (MOA) that will be signed by the LGU, Rameses

Systems Inc. and payment service providers Development Bank of the Philippines and Land Bank of

the Philippines. The draft MOA is being reviewed and will be submitted to the City Council who will

issue a resolution authorizing the Mayor to sign the agreements on behalf of the city.

Legazpi City will also be the first LGU to disburse payments to suppliers via PESONet. The TWG

agreed to adopt PESONet after USAID/E-PESO addressed questions on the acceptability of electronic

official receipts and electronic payment service provider Development Bank of the Philippines (DBP)

agreed to reduce the transaction cost from PhP25 to PhP5 per transaction. The City Treasurer’s

Office, however, requested DBP to provide the service at no cost, because charging for transaction

fees may require submitting the service to procurement and going through the Bids and Awards

Committee approval. DBP will seek guidance from the Head Office on whether they can provide the

service for free.

The memorandum of agreement (MOA) for PESONet has been reviewed by City Legal Office and the

local Commission on Audit (COA) auditor and has been forwarded to the City Council for the

issuance of the resolution authorizing the Mayor to sign the agreement.

The launch date for e-payment services and PESONet disbursements in Legazpi City will be on

October 25, 2018 at 9:00 in the morning at the Casablanca Hotel in Legazpi City.

Tagbilaran City

Tagbilaran City launched online payment services for business permits via Land Bank of the Philippines’

(LBP) Link.Biz Portal and Development Bank of the Philippines’ (DBP) Internet Payment Gateway

(IPG). The convenience of online payment will be extended to Tagbilaran City’s over 5,000 active

registered businesses.

USAID/E-PESO initiated partnership with Tagbilaran City in January 2016. While the City completed

the upgrading of its tax and revenue collection system (from Tax Revenue and Assessment System

(TRACS) to ETRACS (Enhanced Tax Revenue and Assessment System), an automated, comprehensive

and integrated treasury system deployed by Rameses Systems Inc. - RSI), USAID/E-PESO assisted the

City with the policy and regulatory coverage for e-payments.

The local ordinance that legitimized electronic payments (e-payments) and authorized the City

Treasurer to collect/accept local government unit (LGU) fees via e-payments, Ordinance 17 Series of

2016 (Ordinance Establishing the use of e-Payment Systems for Financial Transactions with the City


Government of Tagbilaran), was passed in November 2016. In August 2017, an LGU resolution was

also passed authorizing the City Mayor to enter into agreements with electronic payment service

providers (EPSPs) for e-payments implementation. An amendment to the resolution was passed in

August 2018 to include partnerships with private technology providers like Rameses Systems Inc.

In parallel to the policy work, USAID/E-PESO also assisted RSI with the go-to-market strategy for its

online payments portal Filipizen.

In March 2018, RSI completed the systems development for Filipizen. With the completion of the

Filipizen portal, USAID/E-PESO assisted the City with the requirements for launch: reviewing

agreements with EPSPs Land Bank of the Philippines (LBP) and Development Bank of the Philippines

(DBP) and RSI, user acceptance tests, and training of City Treasurer’s Office staff.

For Land Bank Link.Biz Portal, the following accounts are eligible as source accounts: LANDBANK

Accounts, ATM Cards of BancNet-Member Banks, Visa and Mastercard Branded credit and debit cards

and GCash accounts. For DBP, the following accounts are eligible as source accounts for the Internet

Payment Gateway portal: DBP Accounts, ATM Cards of BancNet-Member Banks, Visa and Mastercard

Branded Credit and Debit Cards.

USAID/E-PESO will be working with the City Government in the next Quarter to promote the online

payment services and expand online payments to include real property taxes, building permits, and

water bills.

MOA between Tagbilaran City, systems provider Rameses Systems Inc. (RSI) and e-payments service providers Land

Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP)

General Santos City

USAID/E-PESO formalized its engagement with new local government unit (LGU) partner, General

Santos City, in July 2018. USAID/E-PESO briefed Gen. Santos City Mayor Ronnel Rivera and heads of

key LGU departments on USAID/E-PESO’s objectives, work, strategy, and its role in putting in place

the National Retail Payment System - a policy and regulatory framework which aims to establish a safe,

efficient, reliable, and affordable retail payment system in the country. The briefing highlighted the uses

and benefits of e-payments for LGU collections and disbursements, regulatory and policy bases for


electronic payments, requirements for e-payments implementation, implementation timeline, and

suggested next steps.

USAID/E-PESO emphasized that the priority tasks for implementing e-payments in Gen. Santos City

are (1) drafting an executive order (EO) formalizing the creation of a project team or technical working

group (TWG) who will allocate part of their working hours to project activities; and (2) drafting an

ordinance that will authorize the City Treasurer to collect payments via electronic channels.

The Information Technology team informed the group that procurement for upgrading the current

system for tax and revenue collection is ongoing. Gen. Santos’s treasury system is the Tax Revenue

and Assessment System (TRACS). The LGU acquired the system as part of the support of an Australian

Agency for International Development (AusAID) project. When the project ended, systems developer

Rameses Systems Inc (RSI) enhanced the system and is now deploying the upgraded ETRACS

(Enhanced Tax Revenue and Assessment System), an automated, comprehensive and integrated

treasury system. RSI already submitted a proposal for the upgrade to ETRACS to the LGU; IT has

endorsed the sole-source procurement to the Bids and Awards Committee (BAC). The endorsement

has been reviewed by the Chief of Staff of the City Mayor and recommendations have been made to

modify the endorsement.

USAID/E-PESO shared copies of the regulations (circulars and republic acts) that serve as legal basis

for electronic payments, as well as a draft of the EO creating an e-payments TWG. USAID/E-PESO

also sent a proposed project workplan.

After reviewing the draft, Mayor Ronnel Rivera signed Executive Order (EO) 40 Series of 2018 creating

the technical working group (TWG) that will work with USAID/E-PESO to implement the shift to

digital collection of LGU fees and disbursement.

The TWG convened on September 19, 2018 to be briefed on the USAID/E-PESO project, identify the

City taxes, fees, and disbursement streams that will be shifted to digital payments/disbursements, draft

the workplan for e-payments implementation, define roles and responsibilities of team members, and

draw up an action plan.

Based on the volume, number, and frequency of transactions, the TWG identified the following LGU

fees and disbursement streams for digitization: real property tax, business permits, and building

permits (collections), and senior citizens benefits (disbursements).

The TWG also developed a workplan, with tasks and a timeline. The target date for launch of e-

payment services is on the 1st week of January 2019, which is the start of business permit payments.

To be able to achieve this, all project activities prior to the launch should be completed by the end of

December 2018. From the draft workplan, most of the technical integration tasks are dependent on

the completion of the procurement and upgrade of the LGU systems from TRACS to ETRACS. To

be able to complete all project activities by end-December 2018, Information and Communications

Technology Department (ICTD) estimates that procurement and signing a contract with RSI should

be completed by October 19.

To initiate the passage of the local ordinance authorizing e-payments, USAID/E-PESO sent a template

of the ordinance to the City Legal Office Head for review. The draft has been endorsed to the City

Mayor’s Office, who will also review and endorse to the City Council.


Gen. Santos TWG members discussing the current collection and settlement process

CROSS-CUTTING AND SUPPORTING ACTIVITIES

Monitoring & Evaluation and Communications

Institutional Payments Baseline Study

The institutional payments baseline study provides support for the BSP initiative, the National Retail

Payment System (NRPS) - a framework created to help shift the Philippine economy from a largely

cash-based system to one with a greater percentage of electronic payments12. The study is based on

a survey on the payment behavior of businesses and their propensity to shift to e-payments. The

study sheds light on the common payment transactions of businesses and government corporations,

what instrument they use for each transaction and through which channels they make their

payments. Results of this study will be beneficial for the public and private sector alike. Providers of

e-payment products and services can learn about how to improve their service offerings, product

design, and partnership approach to drive further usage. While policymakers can glean information

on the concerns of consumers/businesses about digital payments and channels and how regulations

can help ease those constraints.

USAID/E-PESO completed the fieldwork to gather data on awareness, usage, intention to use and

value of e-payments for the national baseline survey on April 2018. The survey was administered door-

to-door to 360 micro businesses and 150 small businesses. Medium and large businesses interviewed

were randomly generated companies from the list of top 10,000 corporations, while government-

owned and controlled corporations (GOCC) interviewed were from the list of GOCCs registered in

the government. Qualified respondents comprised of CEOs, COOs, senior managers, owners, or

personnel who has deep knowledge of the nature of transactions of the business or merchant and are

also primary decision makers on the company’s financial matters and payment processes such as the

12 Times, T. M. (2018, May 03). BSP thinking ahead on electronic payments. Retrieved July 19, 2018, from http://www.manilatimes.net/bsp-thinking-ahead-on-electronic-payments/396520/


receipt and disbursement of payments. The study was conducted in urban and rural areas for micro

and small businesses, and in urban areas for medium and large businesses and GOCCs. The data was

also analyzed according to payment type, by e-payment instrument, and by payment channel. E-

payments refer to electronic payments made in the past 12 months using ATM/debit card, credit cards,

fund transfers, e-money account, prepaid card issued by banks and prepaid card issued by non-banks.

E-payment channels include ATM and payments made using the internet. Traditional transactions are

those that use cash and check.

The study highlights can be found at: http://www.epaypilipinas.com/latest-updates/philippine-

institutional-payments-baseline-survey-highlights-results/ and are also summarized here. There is a

large potential for e-payments in the Philippines across all business types, but challenges faced by type

of business are different. Micro and small businesses are the big markets for electronic conversion

since they make up 99% of the Philippine industry based on number of establishments. For micro

businesses, e-payment awareness is 61% but usage is only at 10%. Intent to use in the future is also

not so high at 32% for micro businesses. Small businesses have 78% awareness and usage is only at

28%. There is untapped potential in small companies, however, as intent to use is at 60%.

Medium and large businesses and GOCCs are already 100% aware of e-payments. Usage of medium

and large businesses is already at 93% while GOCCs is at 90%. They all have intent to use e-payments

in the future, with 87% of medium businesses, 70% of large businesses and 87% of GOCCs intending

to use e-payments.

Table 7: Snapshot by Business Size (Institutional Payments Baseline Study)

Micro Small Medium Large GOCC

Awareness (net) 61% 78% 100% 100% 100%

Past 12 months usage 10% 26% 93% 93% 90%

Future intent to use 32% 59% 87% 70% 87%

Customers open to

e-payments (T2 box)

11% 26% 74% 64% 64%

Willing to charge

customers for

e-payments

41% 15% 29% 32% 27%

In pushing for e-payment usage, increasing ATM usage would be the low hanging fruit for micro and

small businesses. 57% of micro businesses are aware that ATMs can be used for business while 77%

of small businesses are aware. For medium, large and GOCCs, it would be increasing usage of digital

channels which are via mobile and or computer. For cellphone via internet, 43% of medium businesses

are aware, versus 40% of large and 57% for GOCCs. And for cellphone via computer, medium

businesses have 70% awareness, large have 67% and 70% for GOCC.

Table 8: Awareness / Past 12 Months Usage of e-Payments by Channels (Institutional Payments Baseline

Study)

Figures in % Micro Small Medium Large GOCC

ATM 57/8 77/26 100/73 87/63 100/60

Cell phone via

Internet

17/1 19/1 43/13 40/10 57/10

Computer via

Internet

16/1 34/4 70/37 67/50 70/53

Businesses, especially small and micro, primarily transact with traditional instruments. Medium, large

and GOCCs also transact with traditional instruments, but together with e-payments. ATM/debit

cards and fund transfers have the highest level of awareness and usage levels among medium and

large businesses and GOCCs.

http://www.epaypilipinas.com/latest-updates/philippine-institutional-payments-baseline-survey-highlights-results/

http://www.epaypilipinas.com/latest-updates/philippine-institutional-payments-baseline-survey-highlights-results/


Table 9: Awareness / Past 12 months Usage of Instruments ((Institutional Payments Baseline Study)


E-payments net 61/10 78/26 100/93 100/93 100/90

Fund transfer 25/1 40/8 80/63 80/73 63/53

ATM card/debit card 53/7 68/16 80/70 80/60 100/60

Credit card 30/3 44/6 40/27 40/20 47/13

Mobile money

transfer / e-payment account

7/1 14/1 40/10 40/13 50/17

Prepaid cards issued

by banks

8/1 12/1 30/3 30/7 53/10

Prepaid card issued by

non-banks

1/0 1/0 13/0 13/0 17/0

Traditional instruments net

98/97 99/97 97/100 97/97 100/100

Cash 96/96 99/96 97/100 97/93 83/57

Check 34/8 62/33 90/87 90/87 93/90

Barriers to e-payments are also different by type of businesses. For micro and small businesses,

awareness, relevance and accessibility are the major barriers in using e-payments. There is a need to

increase awareness, increase relevance of e-payments where micro and small businesses would prefer

using e-payments because of a need; and accessibility where e-payment provider can offer a middle

ground to micro and small businesses to enable them in opening e-payment accounts. For medium,

large, and GOCCs, accessibility – through access in payments made, documents in opening an account

and internet connectivity – is also an issue. Driving awareness of e-payments and their benefits is a

top priority for micro and small businesses, while improving touch points in costumer journey,

improving infrastructure, products and service innovations to encourage suppliers and customers are

the top priorities among medium, large and GOCCs.

Table 10: Benefit Blocks by Business Type (Institutional Payments Baseline Study)


Awareness – Don’t know about it

x

Accessibility – Internet /

connectivity

x x x x x

Accessibility – Too

much effort / documents

required

x x x x x

Accessibility – Late

posting of payments, reconciliation issues

x x x

Accessibility –

Customers / suppliers

don’t use it

x x x

Relevance – Don’t need it / What I am using is good enough / Prefer

cash

x x

Infrastructure was also cited as a concern. Only 1% of micro businesses have internet access and 32%

in small businesses. Highest mobile penetration rates are seen in medium, large and GOCCs with

100% access to internet.


Table 11: Benefit Blocks to Solutions by Business Type (Institutional Payments Baseline Study)


Awareness – Drive awareness of e-payments and its benefits via

communications campaign

x x

Accessibility – Improve

touch points in customer journey

x x x x X

Accessibility – Improve

infrastructure

x x x x X

Relevance – Product and

service innovations to encourage use among suppliers and customers

x x x x x

To increase awareness that e-payment can be used in business, communication campaigns should be

implemented, especially among the biggest segment, micro businesses. Retention and loyalty among

the other business types and GOCCs can be improved by sharing the convenience, speed and safety

of e-payments. Easy to use, one-stop shop, and no queuing are top convenience features of e-

payments. While the fast and efficient processing and greater safety than cash are ways to displace the

usage of traditional instruments. Providing examples would capture the attention of businesses and

GOCCs.

Table 12: Overall Strategies and Plans to Increase Usage of Payments to 20% of all Transactions Across the

Philippines

Micro Small Medium Large GOCC

Business

Strategies

Grow market size Grow usage and

range

Grow usage

and range

Steal share

(from cash), grow range and usage

Steal share

(from cash), grow usage

Marketing Objectives

Image Awareness and trial

Image Trial

Retention Loyalty Loyalty

Marketing

Strategies

Product

Promotions

Process

Product

Process

Promotions

Product

Process

Product

Process

Product

Process

To reach the businesses, there are different media where e-payment products and services can be

shown. It includes word of mouth, banks and TV for micro and small. Banks are the top source of

awareness for medium, large and GOCCs, followed by word of mouth and digital channels like the

internet and websites of banks.

Partnering with establishments is also another point where e-payment usage can be increased. For

micro businesses, e-payments can partner with utility companies, government, and suppliers since

these are their top payment obligations. For small, medium, large and GOCCs utility companies,

government agencies/offices, banks (for payroll), suppliers and professional services can be channels

where e-payments can be increased. Partnering with these establishments will provide options for

businesses and consumers alike.


Implementation Challenges

SUB-PURPOSE 1: RAPID ADOPTION OF E-PAYMENTS IN FINANCIAL SYSTEM

Need for Electronic Invoices and Official Receipts

In discussions with the financial institutions who have been actively marketing PESONet enabled

services to their corporate customers, they have identified the need for the issuance of guidelines of

electronic invoices and official receipts as a driver to push business to business electronic payments.

The banks’ customers have shared that unless the end-to-end payment process, including invoices and

receipts are electronic, they would be unwilling to shift to electronic payments as they will not achieve

a scale of efficiency as they still need to manually issue and collect physical invoices and receipts as

required by the Bureau of Internal Revenue (BIR).

USAID/E-PESO is planning to organize a roundtable discussion or multi-stakeholder workshop with

the BIR, BSP, key businesses representing various industries and their financial institutions to:

• have a common understanding of the end-to-end business-to-business payment process;

• identify the electronic processes and / or payment solutions that can improve the payment

process;

• identify the applicable regulations, their impact on the business payment process and

resulting issues if any;

• identify what regulations can be considered to improve the electronic payment process that

will be beneficial to businesses and the regulators;

• develop an action plan to digitize receipts and invoices to help drive e-payments amongst

businesses;

• identify next steps.

Most Banks are not Aggressively Promoting PESONet and InstaPay to their Customers

Although the number of financial institutions offering PESONet and InstaPay enabled products on their

online channels is growing, it has been observed that only a few are actively and aggressively marketing

PESONet and InstaPay. These are due to the following:

• Many banks are still observing and analyzing the impact of low-cost, high volume inter-bank

electronic funds transfer service on their revenues and budgets;

• Current sources of competitive advantage (e.g. wide branch network, etc.) are threatened.

The PESONet Marketing Awareness Campaign being implemented by USAID/E-PESO is working to

resolve this and has been the source of information for customers on PESONet. As part of the

campaign, a standard poster and flyer is being designed. USAID/E-PESO will also be designing a

standard poster and flyer for InstaPay. It is expected that BSP will be mandating participating financial

institutions to market PESONet and/or InstaPay and these may be through the display of PESONet

and InstaPay posters in the branches.

Some Financial Institutions Continue to Charge Higher EFT Transaction Fees

Although BSP has been effective in ensuring full value transfer for electronic funds transfer transactions

through its regulations, it had been expected that financial institutions will aggressively compete in

reducing the fees charged to the sender. Although there are some financial institutions that do not

charge fees for PESONet and/or InstaPay, there are still some banks that charge more than PhP 200

for PESONet transactions and PhP 100 for InstaPay transactions. Despite the high fees, it has been

observed that some of these institutions are still some of the top clearing volume contributors.


Particularly for the bigger banks, there does not seem to be an aggressive push for their customers to

shift to electronic means through radically lower fees. This may be due to the reasons cited above.

BSP has taken note of these fees. As specified in BSP’s Circular No. 980, it is expected that financial

institutions should adopt reasonable market-based and transparent pricing mechanisms. It is expected

that aside from competition eventually driving down the fees, BSP has also been informally talking to

the government banks to reduce their fees.

Limitations of Current Clearing Rules, Facilities for Collections

In discussions with government agencies on their needs and requirements for electronic payments, it

was observed that government agencies are also looking for electronic payment solutions for

collection purposes beyond current available facilities, typically bilateral connections with multiple

financial institutions. Although conceptually, PESONet and InstaPay may be utilized for bills payment,

the process is inefficient for both the payer(s) and payee(s) due to the following:

• Payers will have to know payees’ account numbers, in this case the government agencies;

• Clearing rules do not cover validation of reference numbers and/or handling of reference numbers

when part of the EFT message.

Therefore, USAID/E-PESO will be assisting the BSP and the industry to develop an electronic bills

payment service to enable collections through current and future ACHs. USAID/E-PESO is also

working with large government billers to pilot the service once available.


Government Banks’ Readiness / Willingness to Push PESONet

Based on the data provided by BSP on the availability of PESONet on electronic channels, only one of

the two major government banks have made PESONet available on its online banking. Despite the

availability of the service on their online channel, an apparent reluctance to offer the service to its

current government agency customers has been observed. USAID/E-PESO believes that this is due to

the bank’s expected possible reduction in fee income vs current offering being availed by the

government agency/ies with the bank.

USAID/E-PESO will have difficulty assisting the government agencies to adopt electronic payments if

their financial institutions, the authorized government depository banks (AGDB), are unwilling or not

ready to support their electronic payment requirements.


IMPROVED PESONet Operational Issues and Concerns

In the first few months of 2018, it had been reported that there were still major banks that would

delay credits of incoming credit transactions due to additional validation being conducted not required

by regulation or the clearing rules but required by internal policies. The delays have resulted in

complaints from customers of other banks, particularly the payers, as they were expecting same day

credit of the transactions. These were despite the issuance of BSP Circular No. 980 on the Adoption

of National Retail Payment System (NRPS) Framework in November 2017 and a Memorandum No.

M-2018-012 on Guidelines on the NRPS Key Principles and Specific Rules Applicable Hereto in March

2018 to ensure credit of PESONet transactions within two (2) hours from settlement with the BSP.


Memorandum No. M-2018-021 on Frequently Asked Questions on Anti-Money Laundering -Related

Concerns on the Adoption of National Retail Payment Systems Framework was issued in early

September 2018 to reiterate the beneficiary institutions Laundering -(2) hours from settlement of the

amount to the beneficiary’s account.

Although the situation has improved, financial institutions continue to cite the following concerns that

contribute to the difficulty in complying with the mandate:

• Inconsistencies of provisions in Circular No. 950 and 980. Circular No. 980 does not

supersede AML-related provisions in Circular No. 950;

• Considering that there is only one settlement cycle per day now, big banks which receive the

bulk of incoming credit transactions are unable to handle the volume of additional manual

validation that may be required within the two (2) hour turnaround period prescribed by the

BSP;

• Particularly for foreign banks, there are also other requirements from their other regulators

that may be inconsistent with BSP regulations

As of September 2018, the number of PENDING, HOLD and NO STATUS are a total of 2,096,

representing 0.39% of all PESONet inward volume. From discussions in steering committee meetings,

this number has supposedly improved, however unfortunately, statistics for earlier months are not

available for comparison.

PPMI’s Limited Resources

The PPMI continues to have limited resources and can only provide limited support to the industry.

Ongoing discussions with PPMI are ongoing to provide support.

SUB-PURPOSE 4 (CROSS-CUTTING): GAPS IN BROADER E-PAYMENT ECOSYSTEM ADDRESSED

Operationalization of Local Government Units’ Disbursements via Electronic Fund Transfer Services

The establishment of electronic funds transfer automated clearing houses (ACHs), PESONet and

InstaPay, is one of the immediate outcomes of the enactment of the National Retail Payment System

(NRPS) framework These ACHs allow bank and non-bank customers to send funds electronically to

other accounts in any other bank either in bulk or individually. The beneficiaries (or payees) receive

the transfers at full value within the same day (PESONet) or near real-time (InstaPay). PESONet will

allow LGUs to disburse social benefits (stipends of scholars, allowances of senior citizens, teachers,

and uniformed personnel) and payments (suppliers, utilities, vendors) straight to recipient accounts in

other financial institutions, eliminating checks and the resources allocated for its preparation.

Several questions were raised during the consultative meeting with Legazpi City on the proposal to

adopt PESONet. First, that releasing payments via electronic fund transfer will be in violation of BIR

Revenue Memorandum Circular (RMC) 2-2014 which states that Sales Invoice are demanded as

evidence of delivery agreement to sell or transfer of goods and services, and Official Receipt as

evidence of payment.” However, COA Circular 2004-006 (Guidelines and principles on the

acceptability of the evidence of receipt of payment for disbursement) which states that evidence of

receipt of payment is traditionally required to be in writing and capable of being presented in its original

form, then the electronic receipt of such receipt may be acceptable as evidence of receipt of payment

for audit purposes only. To address this, E-PESO suggested issuing a debit advice form; the supplier

can subscribe to the PESONet facility and nominate their bank account information and agree to

deliver the official receipt with 3 days upon receipt of deposit.


Second, covering the transaction fee for PESONet will require going through the procurement

process. After negotiations, DBP agreed to waive the transaction fees.

Legazpi City initially decided to launch the service under a controlled environment and with pre-

selected suppliers, but eventually decided to shelve the implementation, citing the lack of a precedent

and clear guidelines for the acceptability of electronic official receipts.

PMP Update

Despite funding uncertainty, especially during the first half of Year 4, several life-of-

project performance indicators have been met or even exceeded. Indicator 2 on the number of

institutions supported by E-PESO to improve their infrastructure have been exceeded with the launch

of both PESONet and InstaPay. Indicators 3.1 a) and b) on number of regulations and local ordinances

supporting e-payments growth have been met, especially with the issuance of the BSP landmark

regulations on NRPS. Indicator 3.5 on number of guidelines that promote digital security has also

been exceeded with E-PESO’s work on training and policy assessment on BSP’s cybersecurity

resiliency. Lagging indicators on number of cities, NGAs and businesses adopting e-payments will

improve with the launch of DBM’s BTMS e-learning courses, BIR’s TSP program and the forthcoming

launch of e-payments in Legazpi, Puerto Princesa and General Santos Cities.

Progress Narrative

Table 13: Overall Targets and Indicators as of Year 4 Quarter 4

Indicators Year 1 Actual

Year 2 Actual

Year 3 Actual

Year 4 Annual Target

Y4/Q4 Target for the

Quarter

Y4/Q4 Actual for the

Quarter

Performan

ce

Achieved

for Y4/Q4,

Actual vs.

Target (%)

Desired Impact (DI): Efficient, Transparent, and Inclusive Retail E-payment System Contributing

to Broad-based Growth

Indicator DI 1&2: Increased

economic opportunity, a. Number of e-payment

users(a)

New 0 .503 M TBD .69 M .17 M TBD n/a

Cumulative 10.9 M 11.4 M TBD 12.54 M 12.54 M TBD n/a

b. Percent of population 15 years old

and above who are e-payment users

16.1%

16.2%

TBD

17.1%

17.1%

TBD

n/a

Indicator DI 3: Transparency and efficiency of the retail payment system improved. (This indicator will be tracked under outcome Indicator 3.1 - Financial regulation refined to manage growth of e-payments.)

Indicator DI 4: More

predictable and reliable financial tools for the

poor,

Number of financial products, services or applications that are

designed/ enhanced to meet the needs of low

income clients,



Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Performan

ce

Achieved

for Y4/Q4,

Actual vs.

Target (%)

New 0 1 0 2 4 TBD --- Cumulative 0 1 1 5 5 TBD 33%

Desired Purpose (DP): Scope of E-payment Usage Reaches Tipping Point for Scale

Indicator DP 1: E-payments accounting for at least 10% of all retail

payment transactions, (a)

Percent of e-payments accounting for retail payment transactions

1.03%

2.76%

TBD

5.36%

5.36%

TBD

n/a

Indicator DP 2: Growth in the number of active e-payment users to reach

scale, (a)

Number of active e-payment users,

New 0 TBD TBD .5 M 1.2 M TBD n/a Cumulative 10.2 M 10.2 M TBD 11.40 M 11.40 M TBD n/a

Notes:

* USAID approved changes to targets. (a) Year 1 Actual is carried over from baseline figures of e-payment users derived from registered e-money accounts since first survey was conducted only on February to March 2016. Years 1 and 2 targets derived from the BTCA Philippines

Country Diagnostic Study (July 2015) and the Philippine Individual Payments Baseline Survey (February-March 2016) that covers all types of e-card instruments (ATM/debit cards, credit cards, pre-paid cards, and e-money cards).

TBD – To be determined. Data dependent on results of the BSP’s Financial Inclusion survey, Q2 2017 report shows end-

2016 data.

Indicator DI 1&2 are top level indicators measuring e-payment usage in the population to establish

adoption. Due to budget constraints, USAID/E-PESO will not be able to implement expensive annual

or biennial national surveys to track this over time. Instead, a baseline study and a near end-of-project

study will be done. For the in-between years, USAID/E-PESO will rely on the BSP to implement similar

research to establish e-payments adoption. Since USAID/E-PESO depends on the BSP’s timeline, the

results of their latest survey have not yet been concluded

Indicator DI 4 is lagging due to USAID/E-PESO’s dependency on banks to execute their product

development strategies targeting the low-income market segment. At this point, financial institutions

are busy building internal systems and working with other players to build interoperability. Once the

infrastructure is in place, USAID/E-PESO will see robust product development efforts leading to

product launches. Like DI 1&2, Indicators DP 1 and DP 2 depend on the BSP’s execution of the

research in the in-between years to track e-payments adoption in terms of active usage and percent

of retail transactions. However, results will not be due until after the full survey by the BSP is

completed.



Table 14: Targets and Indicators for Sub-Purpose 1 as of Year 4 Quarter 4


Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Perform

ance

Achieve

d for

Y4/Q4,

Actual

vs.

Target

(%)

Desired Outcome 1: Rapid Adoption of E-payments in Financial System

Indicator 1.1: Adoption of

new e-payment services as collection/ disbursement

option in five (5) national GPH agencies

New 1 1 0 1 1 0 --- Cumulative 1 2 2 4 3 3 66%

Indicator 1.2: Adoption of

m-money and e-payments in all cities of PFG CDI and

other cities/municipalities,

Number of CDIs (and other cities/municipalities) that

introduced or enhanced m-money and e-payment

options,

New 3 3 0 0* 4 1 ---

Cumulative 3 6 6 9* 6 7 67%

Indicator 1.3: New e-payment implementation and adoption by 300 (small,

medium, and large) businesses, (b)

Number of businesses

introducing or enhancing e-

payment options because of USAID/E-PESO support,

New 4 1 0 100* 25 0 --- Cumulative 4 5 5 200* 31 31 4%

Indicator 1.4: Over

16,000 people trained (via consumer education) on

the usesof e-payments and

m-money services for improved household financial management,

Number of people trained

(via consumer education) on the uses of e-payments,



Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Perform

ance

Achieve

d for

Y4/Q4,

Actual

vs.

Target

(%)

New 272 8,876 353 3,000* 500 0 --- Cumulative 272 9,148 9,501 13,000* 10,500* 10,500 83%

Notes:

See Annex for details of results. * USAID approved changes to targets.

There is no new national GPH agency adopting e-payments targeted for Indicator 1.1 for this quarter.

However, actual cumulative GPH agencies to date still lags behind the target cumulative value to date.

With upcoming cooperation with Pag-Ibig and/or SSS to disburse benefits using PESONet, and with

DBM to implement BTMS that will enable NGAs to disburse using PESONet, USAID/E-PESO can very

well meet the target of two new GPH agencies adopting e-payments by Year 5.

For Indicator 1.2, the target of four additional CDI cities adopting e-payments was not met. Tagbilaran

City launched e-payment services in August 2018, the first LGU to launch electronic assessment and

payment using the Filipizen online platform developed by Rameses Systems Inc (RSI) integrated with

the internet payment gateways of Land Bank of the Philippines and Development Bank of the

Philippines. The tripartite commercial agreements signed by the LGU, e-payment service providers,

and RSI during the launch and the technical integration established a precedent model for the other

LGUs also using ETRACS. This sets the stage for the launch of the full system – completely automated

ETRACS with e-payments – to RSI’s 60 other LGU partners using ETRACS, including USAID/E-PESO

new partner cities Legazpi City in Albay and General Santos City and Puerto Princesa City. Legazpi

City is set to launch e-payment services in the first Quarter of FY5 while Gen. Santos City and Puerto

Princesa will launch e-payment services in the second Quarter of FY5.

Progress with Indicator 1.3 will be realized once TSPs are authorized by the BIR to offer e-tax

preparation, filing and payment to their customers. USAID/E-PESO will also organize a business forum

in Legazpi City in the next Quarter. The business forum is a dialogue with businesses on electronic

payment options – for disbursement (such as payroll, supplier payments, bills and government

payments) and collections. The forum aims to orient businesses about the various electronic payment

options available in the Philippine market and how they can benefit from adopting it, increase e-

payments usage and e-payment channels within the ecosystem and achieve a 10-20% signup for e-

payment services from participant businesses.

Lastly, Indicator 1.4 is lagging because USAID/E-PESO did not conduct training for its LGU CDI

partners last quarter due to funding constraints. Most of the previous year’s training came from CDI

partners such as Cagayan de Oro City, Quezon City, Tagbilaran City, and Zamboanga City.





Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Perform

ance

Achieve

d for

Y4/Q4,

Actual

vs.

Target

(%)

Desired Outcome 2: Infrastructure for E-payments Expanded

Indicator 2.1: Growth of

front-end e-payment infrastructure expanded, (c)

Number of institutions

supported by USAID/E-

PESO to improve and/or expand their front-end infrastructure,

New 10 8 3 7* 7* 31 442%

Cumulative 10 18 21 28* 28* 51 182%

Indicator 2.2: Back-end e-

payment infrastructure strengthened, (d)

Number of institutions supported by USAID/E-

PESO to improve and/or

expand their back-end infrastructure,

New 10 5 0 5* 5* 51 1,020% Cumulative 10 15 15 25* 25* 66 264%

Indicator 2.3: E-payment

infrastructure gaps identified

Number of gap analysis reports at industry or

ecosystem level, (e)

New 0 3 0 1* 1* 0 ---

Cumulative 0 3 3 4* 4* 4 133%

Notes:

See Annex for details of results. * USAID approved changes to targets.

(c) Definition of front-end infrastructure is any user-interface or device needed by individual users to conduct e-payment transactions. However, by Year 4, front-end infrastructure shall refer to any computer system, software application, and/or

device used by an institution or individual user to conduct e-payment transactions. (d) Definition for back-end infrastructure is any system at the back-office operation of an institution required to allow and process e-payment transactions coming from the front-end infrastructure. By Year 4, back-end infrastructure shall refer


to any system from financial institutions connected to switch operators appointed by the automated clearing house participants used to process and settle e-payment transactions.

(e) Gap analysis reports are studies done to assess demand, supply, or infrastructure gaps within an entire industry or e-payments ecosystem at a regional or national scale. This does not apply to gap analysis reports done at the firm or

institutional level during partner engagement.

For indicator 2.1, there are a total of 30 unique institutions who have made PESONet and/or InstaPay-enabled products available on their internet and/or mobile channels. The complete list is included in Annex 3. Tagbilaran City launched online payment services via the Filipizen portal, increasing Indicator 2.1 by one. USAID/E-PESO is assisting Rameses Systems Inc. and partner EPSPs with the integration of e-payments via RSI’s Filipizen portal in Legazpi City, General Santos City, and Puerto Princesa City. For Indicator 2.2, there are a total of 51 unique institutions who are connected to PESONet’s and/or InstaPay’s clearing switch operators (CSO) and are receiving electronic funds transfer credit instructions through the ACHs. The complete list is included in Annex 4.


IMPROVED



Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Performan

ce

Achieved

for Y4/Q4,

Actual vs.

Target (%)

Desired Outcome 3: Enabling Environment for E-Payments Improved

Indicator 3.1: Financial regulation refined to

manage growth of e-

payments,

a) No. of circulars, regulations, and/or

local ordinances refined or clarified to support

e-payment growth

New 2 5 1 3* 1* 7 100% Cumulative 2 7 8 12* 11* 18 100%

b) No. of public-

private dialogues to support strengthening

e-payment environment

New 7 10 6 5* 0* 0 100% Cumulative 7 17 23 33* 32* 32 145%



Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Performan

ce

Achieved

for Y4/Q4,

Actual vs.

Target (%)

Indicator 3.2: Increased competition among m-money and e-payment

platformsf)

Number of policies removed or added to

reduce barriers and

encourage competition,

New 0 0 0 2 1 0 ---

Cumulative 0 0 0 3 2 0 ---

Indicator 3.3: Interoperability in the

national payment system achieved, (g)

Level of Interoperability

Batch EFT --- 4 --- 3 3 3 --- Real time EFT (Insta Pay) --- 1 --- 3 3 --- ---

Indicator 3.4:

Increased consumer awareness and trust in

e-payments (h)

a) % of population 15 years old and over aware of e-

payments

25.6%

67.73%

TBD

69.7%

69.7%

TBD

n/a

b) % of population 15 years old and over that trust the e-payment

system

52.0%

61.46%

TBD

63.8%

63.75%

TBD

n/a

Indicator 3.5:

Security measures in

e-payments strengthened,

No. of guidelines developed and forums

held that promote

awareness on digital

security best practices or consumer protection,

New 0 1 2 2* 0 0 400% Cumulative 0 1 3 3* 6* 7 350%



Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Performan

ce

Achieved

for Y4/Q4,

Actual vs.

Target (%)

Indicator 3.6: Global knowledge-sharing on e-payments promoted,

a) No. of articles

promoting e-payments

New 14 18 12 12 3 0 233% Cumulative 14 32 44 48 63 56 133%

b) No. of global knowledge-sharing events that highlight

the Philippines e-

payment environment/players

New 2 5 2 1** 0 1 ---

Cumulative 2 7 9 9** 10 11 125%

Notes:

See Annex for details of results. + As of Quarter 2 Year 4 * USAID approved changes to targets.

** Year 3 to LOP targets for Indicator 3.6b exceeded. Approved changes to targets. (f) Increased competition among m-money and e-payment platforms is a contextual indicator. In collaboration with the

BSP, this refers to the number of policies removed or added to reduce barriers and encourage competition in e-payments.

(g) Interoperability in the national payment system achieved is an indicator based on qualitative research. This indicator

tracks milestones in the development of the NRPS as measured through 5 levels: 1) Theoretically interoperable; 2) Technically interoperable; 3) Functionally interoperable; 4) Interconnected; and, 5) Effectively interconnected as explained by the Alliance for Financial Inclusion (AFI). By Year 4, interoperability scores shall be disaggregated by use

case to track various e-payment modes. (h) Year 1 figures are derived from the Philippine Individual Payments Baseline Survey that covers all types of e-card

instruments (ATM/debit cards, credit cards, pre-paid cards, and e-money cards). The payments study asked direct

questions on awareness and trust to randomly selected individually paying decision-makers across the Philippines.

Indicator 3.1 looks at the laws, circulars, regulations, and ordinances enacted to support e-payment

growth. Often, there are public-private dialogues supporting efforts to introduce such rules and

regulations. For Year 4, BSP has issued six NRPS Related Regulations policy regulations (see Table 5).

Legazpi City enacted the local ordinances institutionalizing the use of electronic payments for financial

transactions with the City during the Quarter. USAID/E-PESO is working with BIR to draft and enact

a new Revenue Memorandum Order (RMO) outlining the TSP enrollment and certification process.

Indicator 3.3 (interoperability in the NRPS achieved) is a qualitative indicator that tracks milestones in

the development of the NRPS. Interoperability is measured through five levels: 1) theoretically

interoperable; 2) technically interoperable; 3) functionally interoperable; 4) interconnected; and 5)

effectively interconnected, as explained by the Alliance for Financial Inclusion (AFI). With the issuance

of BSP Circular No. 980 – specifically Subsec. X1205.5/41205Q.5/ 4705S.5/4705P.5/4805N.5a. stating

“(1) BSFIs shall make electronic payments available in all its delivery channels when applicable; (2) BSFIs

shall enable its clients to move/receive funds to/from account with other BSFIs, or, at a minimum,


receive funds. Movement of funds between BSFIs shall be carried out through participation in an ACH”

– interoperability of the various payment streams is assured. The ACH clearing rules details the terms

of the interoperability.

Indicator 3.4 (increased consumer awareness and trust in e-payments) shows only annual targets since

the method to track awareness and trust in e-payments is through surveys conducted by USAID/E-

PESO or the BSP. BSP’s 2017 Financial Inclusion Survey did not measure awareness and trust in e-

payments.

Indicators 3.5 and 3.6 refer to milestones on guidelines, fora, and articles of a cross-cutting nature that

revolve around digital security, consumer protection, and knowledge sharing of best practices.

Activities related to these indicators seek to inform and support regulators, industry players, and the

public on the latest trends on e-payments. Years 2 and 3 activities for Indicator 3.5 were consumer

education campaigns designed and organized by USAID/E-PESO and hosted by LGUs or their private

partners. USAID/E-PESO conducted four digital security trainings for the BSP this quarter.



Standard Indicators

Year 1

Actual

Year 2

Actual

Year 3

Actual

Year 4

Annual

Target

Y4/Q4

Target

for the Quarter

Y4/Q4

Actual

for the Quarter

Perform

ance

Achieve

d for

Y4/Q4,

Actual

vs.

Target

(%)

2.2.3 Local Government

and Decentralization 2.2.3-5 Number of sub-

national entities receiving USG assistance that improve their performance, (i)

New 3 3 2 1* 0* 1 ---

Cumulative 3 6 8 8* 7* 9 114%

GNDR Gender

GNDR-2 Percentage of female participants in USG-assisted programs designed

to increase access to productive economic

resources (assets, credit, income or employment), (j)

For the year 85% 72% 72% 50% 50% --- --- Cumulative as of the year 85% 73% 73% 50% 50% --- ---


Standard Indicators

Year 1 Actual

Year 2 Actual

Year 3 Actual

Year 4 Annual

Target

Y4/Q4 Target

for the Quarter

Y4/Q4 Actual

for the Quarter

Perform

ance

Achieve

d for

Y4/Q4,

Actual

vs.

Target

(%)

PPP Public/Private Partnerships PPP3 Number of

organizations (for and not-

for-profit, and government)

that have applied new technologies and/or management practices due to

USG-supported Public-Private Partnerships (PPPs), (k)

New 8 5 3 5* 5 0 ---

Cumulative 8 13 16 20* 23 18 106%

Notes: See Annex for details of results.

* Approved changes to targets. + As of Quarter 2 Year 4 (i) This indicator is like Indicator 1.2 that tracks CDIs/other cities and municipalities, which receives USAID/E-PESO assistance. Targets are derived from the same set as Indicator 1.2: Adoption of m-Money and E-payments in all cities of PFG CDI and other cities/municipalities. (j) This assumes a 1:1 ratio of females trained for every male. This is based on the Philippine Individual Payments Baseline Survey, where there is an equal ratio of males/females in the sample population. Generally, the broader Philippine population also has a sex ratio of 102 males for 100 females. Source: http://www.pcw.gov.ph/statistics/201405/population-families-and-household-statistics, accessed May 18, 2016. (k) Targets are derived from the same set as Indicators 1.1, 1.2, and 1.3 where it identifies the number of institutions that have applied new technologies and/or management practices due to USAID/E-PESO-supported Public-Private Partnerships (PPPs).

Please see section on LGU partners/CDIs (Progress Narrative- Component 1: Rapid Adoption of e-

Payments in the Financial System) for discussion on how Tagbilaran City and Puerto Princesa City will

increase the count of Indicator 2.2.3-5 by two in the next quarter.

During Year 3, USAID also added new standard indicators below beginning October 2016 to comply

with guidelines from USAID/Washington DC.

Table 18: Additional USAID/E-PESO Indicators (Economic Growth)

Standard Indicators Year 3 Actual FY 17+

Year 3 Target FY 17

Year 4 Actual FY 18+

Year 4 Target FY 18

Year 5 Target FY 19

LOP Target FY 20

EG.4.2-1 Total number of clients benefiting from financial services provided

through USG-assisted financial intermediaries, including non-

financial institutions or actors (a)

New

353

852

0

3,000

3,000

-- Cumulative 9,501 10,000 9,501 13,000 16,000 16,000

http://www.pcw.gov.ph/statistics/201405/population-families-and-household-statistics


EG.4.2-2 Number of financial intermediaries

serving poor households and microenterprises supported by USG

assistance (b)

New 1 1 0 2 2

Cumulative 1 1 1 3 5 5

3. INTEGRATION OF CROSSCUTTING ISSUES AND

USAID FORWARD PRIORITIES

Gender Equality, Female Empowerment, and Disability Action To promote cross-cutting issues, USAID/E-PESO has consistently integrated women’s inclusion in

formal financial systems. Past and on-going trainings track participation by women which now has

reached 73% cumulatively among total number of participants. Because there were no e-payment

and/or consumer education trainings for household and businesses conducted during the quarter, the

percentage of female participation has not been updated. In the next quarter, USAID/E-PESO plans to

renew partnership with the Department of Social Welfare and Development (DSWD) to deliver

consumer education trainings to beneficiaries of the agency’s conditional cash transfer program. As

most beneficiaries are mothers, this activity will boost the percentage of female participation in the

formal financial system.

USAID/E-PESO also sees payments as critical factor in empowering women to have control over their

financial lives through tools of financial management such as debit cards and mobile phones, which are

typically left at the care of women in Philippines households.

Policy and Governance Support Support for NGAs

The USAID/E-PESO Activity is providing governance support to national government agencies (NGAs)

by assisting the Department of Budget and Management (DBM) in implementing the Budget and

Treasury Management System (BTMS) to NGAs through online e-learning. BTMS helps improve GPH’s

fiscal management by standardizing and automating the budget execution process, and by centralizing

all NGA disbursements through PESONet.

To support GPH policy on improving ease of doing business, USAID/E-PESO is assisting BIR in issuing

and implementing a policy on accrediting TSPs as they can expand the number of businesses filing and

paying their taxes online by providing the tools to do so. Online filing and payment of taxes can

promote better governance by reducing opportunities for corruption.

Support for the BSP

USAID/E-PESO is providing digital security policy/governance support to the BSP by through the design

of the Control Self-Assessment (CSA) questionnaire. This CSA was distributed by the BSP to sample

BSFIs to establish a baseline of their awareness and readiness for compliance to BSP's Circular No.

982 on Enhanced Guidelines on lnformation Security Management. An analysis and evaluation of the


responses is currently ongoing. Results of the analysis may contribute to digital security policies or

guidelines for BSFIs.

Public Private Partnerships (PPP)

Besides individual agencies of government and businesses, USAID/E-PESO is building an e-payments

ecosystem with private sector partners and LGUs to push for greater adoption of e-payments at the

mass user level and demonstrate models to be followed.

MoA Between the BSP and PPMI

The MoA between the BSP and the PPMI, where the former recognized the latter as the payments

system management body under the NRPS Framework, was signed on January 12, 2018. In drafting

the MoA, the BSP incorporated previous inputs from USAID/E-PESO regarding the PSMB Charter,

and from the PPMI.

InstaPay ACH

USAID/E-PESO provided inputs to the BSP and the InstaPay ACH Working Group on the ACH

agreement and recommended clearing rules in early 2017. The InstaPay ACH was launched by the BSP

and the industry last April 2018.

4. STAKEHOLDER PARTICIPATION AND

INVOLVEMENT

Setting Up of the PESONet and InstaPay ACHs

The PESONet and InstaPay ACH Steering Committees continued to set-up its operations and

processes with minimal support from USAID/E-PESO. They formulated several sub-committees that

were mobilized to handle formulation of more detailed rules and processes. The BSP continues to be

an active observer in the PESONet ACH Steering Committee.

Additional Regulations

Since the issuance of Circular No. 980 last November 2017, most of the NRPS-related circulars and

regulations (memorandum) issued by the BSP were prepared and finalized with less consultations from

USAID/E-PESO. Provisions continue to be aligned and consistent with principles and policies provided

as inputs in the earlier years of the project.

Additional Awareness Activities

In anticipation of a PPMI or BSP mandates for a standard PESONet poster to be displayed by all

PESONet ACH participants in its respective branches, PESONet’s CSO PCHC’s Board of Directors

approved to shoulder the cost of printing of the posters to be distributed to all PESONet participants.

PCHC likewise committed provincial roadshows on PESONet for the ACH participants’ branch

personnel.

InstaPay’s CSO BancNet implemented some PR activities to promote InstaPay awareness through

seeded stories for print publications and online portals.

The PPMI has been presenting NRPS, PESONet and InstaPay in forums such as the BAIPhil, Rural

Bankers Association of the Philippines (RBAP) events and the Seamless Philippines.


It was observed that Citibank, N.A., one of the highest PESONet volume contributors has been actively

marketing PESONet to its corporate customers through regular roundtable discussions.

Operationalization of the PPMI

The BSP continued to take the lead in providing the guidance to the PPMI in setting-up using previous

USAID/E-PESO inputs and recommendations as reference.

In Year 4, PPMI set-up its secretariat functions, organized the QR code working group and has been

working with the BSP in refining its membership process. It has also been the industry’s voice in raising

concerns / positions on BSP actions, such as reactions to exposure drafts of circulars and other

regulations.

5. MANAGEMENT AND ADMINISTRATIVE ISSUES

Having received additional funding in March 2018, USAID/E-PESO began hiring additional resources

to boost implementation capacity and ensure that workplan activities will be accomplished.

Mr. Vicente Catudio was hired as Digital Finance Advisor (Component 1 Lead), a key

personnel position, on June 20, 2018. His senior management and electronic payments experience will

be a major contribution in the overall management of the project. Ms. Vicky Eleen Puzon was also

hired as the Communications and M&E Specialist on May 15, 2018. Ms. Cheryl Balingit, having been

relieved from communications and M&E responsibilities, was promoted to Component 4 Lead to

focus on USAID/E-PESO’s work with CDI cities. With the growing demand from the technical

team, Nicanor Gonzalo was also brought in as Finance and Operations Manager to provide oversight

and supervision over finance, office administration, procurement and staffing activities.

To improve its cash management efficiency, contribute to USAID/E-PESO’s project objective to

increase electronic payments penetration, and be seen as “walking the talk”, USAID/E-PESO has begun

the process of moving its bank account to another bank offering PESONet electronic funds transfer

service on its online banking channel. With this service, USAID/E-PESO can direct all its payments to

employees, consultants, sub-contractors and suppliers via PESONet e-payments.

6. LESSONS LEARNED

SUB-PURPOSE 1: RAPID ADOPTION OF E-PAYMENTS IN

FINANCIAL SYSTEM Cost-effectiveness of PESONet as an e-Payment Option in Government Disbursements

While most government institutions viewed PESONet as a positive development and an effective

solution to eliminate check payments and shift to e-payments, initial discussions with BTr, DBM and

HDMF indicated reservations given the high transaction fee being imposed by both Land Bank of the

Philippines (LBP) and Development Bank of the Philippines (DBP), the two largest GSBs. As reported

by the two GSBs, they charge Php200.00 per transaction which is way above the switching cost of

Php1.00 for PESONet transactions. While USAID/E-PESO was able to work with DBP to waive its

transaction fee for PESONet transactions for Legaspi City LGU, DBP viewed the service as an

incremental business since the city is banking with LBP. It waived the transaction fee in exchange for

deposit with an average daily balance (ADB) requirement by the Legaspi City LGU. Following this

approach, government institutions should use their deposits as leverage to negotiate lower transaction

fees with both LBP and DBP.


Common Communications Materials and Key Messages for Promotion

The PESONet Marketing Awareness Campaign has been effective in providing the customers of

financial institutions with the necessary information about PESONet. Central to its success was that

key messages to the market were consistent and relevant. Through the engagement of the customers

in social media as well as listening tools, information available on the website has been updated,

particularly the frequently asked questions section to address common concerns about PESONet.

BSP’s Credibility to Instill Confidence in Electronic Payments

As USAID/E-PESO implements the PESONet awareness campaign as well as conducts discussions with

other government agencies, it has been observed that BSP’s endorsement and/or assurance instills the

confidence the market needs in PESONet and similar products. BSP is seen to be the credible party

protecting the interest of the financial consumers. For media interviews and stories, BSP’s presence is

typically requested. For discussions with other government institutions, the government institutions

would typically seek BSP’s assistance, or at the very least, opinion, as they delve deeper into more

detailed discussions on the adoption of e-payments in their respective organizations.


IMPROVED Effective BSP Influence and Oversight

The BSP Governor Nestor A. Espenilla, Jr. continued to play a crucial role in aligning industry actions

with the BSP’s objectives. His direct communications with the financial institutions’ CEOs and senior

management on his expectations are very effective in getting industry participants to move in

accordance with prescribed timelines. Good examples of his leadership and influence include:

• Launch of InstaPay in April (which was earlier than expected);

• Issuance of Circular No. 1000 to ensure settlement risk management for InstaPay;

• Issuance of supporting Memoranda to Circular No. 980;

• Discontinuation of PhilPaSS-REMIT, a BSP facility, to shift volume to PESONet

BSP’s reorganization to include the formation of the Payment and System Oversight Department

(PSOD), previously the NRPS Team, and formation of the Financial Technology Sub-sector has been

beneficial in ensuring consistent follow-through of providing more detailed direction to the industry

on the implementation of NRPS principles.

Formal Regulatory Requirements

The most effective means to address operational issues on electronic funds transfer has been the

issuance of formal regulatory requirements, through BSP’s Circulars and/or Memoranda. It has been

observed that although there may be an ACH agreement, the real driver for the BSFIs would be

compliance to BSP’s regulatory requirements.

High Level of Interest in PESONet Payments from Government Agencies

As USAID/E-PESO engaged various government agencies, it has observed high levels of interest in

PESONet payments not only for purposes of disbursement but also for collections.

Collaborative Efforts Amongst Government Agencies


It has been observed that as various government agencies engage with USAID/E-PESO on electronic

payments, they also need support from other government agencies in pursuing implementation to align

policies and directions. To give some examples, with USAID/E-PESO’s assistance, DBM collaborated

with the BTr and BSP, BIR consulted with BTr and BSP as they explore electronic payments for

collections.

Engagement of Various Stakeholders for the PESONet Marketing Awareness Campaign

The PESONet marketing awareness campaign involves the BSP, PPMI and selected financial institutions

from development to implementation. The inputs provided by the various parties have helped in the

finalization of the strategies and materials being implemented.

BSP’s participation in the campaign activities (i.e. TV and radio appearances and other interviews) help

build the trust in PESONet and NRPS in general as BSP provides credibility and assurance to the public.

Need for a Common NRPS Strategy and Roadmap

Although there have been general statements on what NRPS hopes to achieve, there must be a

common strategy of how the BSP, the industry, and other stakeholders need to move forward to

achieve these objectives.


Formalization of a Whole-of-Government Approach for e-Payments and Disbursements

The over-arching policy that serves as the legal basis for the shift to electronic collections and

disbursements continues to be the Republic Act 8792 (Electronic Commerce Act of 2000), which

recognizes the authenticity and reliability of electronic documents and promotes the universal use of

electronic transactions in the government and general public, with joint department administrative

orders (JDAOs) from the Department of Trade and Industry (DTI) and the Department of Finance

(DOF) outlining the guidelines for implementation. The lack of an unequivocal and whole-of-

government mandate and clear guidelines for implementing electronic payments, however, invite

questions and give rise to reservations and hesitations to implement electronic payments and

disbursement for LGUs. Local Commission on Audit (COA) auditors of LGUs still question collections

made via electronic payment gateways and the legality of issuing electronic official receipts. The

issuance of a mandate and guidelines by an inter-agency body (DOF, DTI, Department of Budget and

Management, Commission on Audit, Bureau of Treasury, and the Bureau of Internal Revenue) will

formalize the cash-lite agenda and streamline the implementation. USAID/E-PESO plans to work with

the DOF to craft and issue policy mandating e-payments.

7. PLANNED ACTIVITIES FOR YEAR 5 INCLUDING

UPCOMING EVENTS


For DBM, the work with the e-learning development firm will be completed in October of this year.

The e-learning system will be launched on November 5, 2018 during the monthly management


committee meeting of DBM. DBM will launch the BTMS on October 15, 2018 and it will be supported

by the BTMS e-learning facility for a more cost-effective rollout of the BTMS training to all NGAs. In

parallel to the BTMS roll-out to NGAs, USAID/E-PESO will work with DBM, BTr and GSBs on

integrating PESONet in the disbursement module of the BTMS.

USAID/E-PESO will resume work with DSWD, subject to their final buy-in, to disburse social subsidies

such as conditional and unconditional cash transfer programs via debit/prepaid cards that can be used

to pay utility bills, pay for over-the-counter purchases at medium to large merchants, send money to

another person (remittance), cash-out from an agent or withdraw cash from an ATM. USAID/E-PESO

will assist DSWD to review all policies related to distribution of cash grants and facilitate consultation

with stakeholders including beneficiaries, BSFIs, conduits, and regulators such as BSP and COA) to

address issues or stumbling blocks towards implementing e-payments aligned with the NRPS

framework. For Q1, it is expected that a new technical working group will have been established, the

review of relevant policies completed and consultation meetings with stakeholders and regulators

conducted.

For HDMF (Pag-Ibig) E-PESO will continue to work to implement e-payments for its disbursement

and collection transactions. Through the TSP Project, which is targeted to launch in November 2018,

HDMF will be able to batch e-file ONETT forms covering capital gains and documentary stamp taxes

to facilitate transfer of titles to home loan borrowers. Through the EBP Project, HDMF will participate

as one of the pilot government biller institutions to make paying of contributions and period loan

amortizations very convenient for members and remitting private institutions. By working with DBP,

HDMF will be able to shift its check disbursements to pay real estate developers, suppliers and home

construction loan borrowers in Q1.

For SSS, USAID/E-PESO will propose to redirect the work towards transitioning their disbursements

of pensions to PESONet. E-PESO will meet with both SSS and DBP and iron out the road blocks that

hindered the shift of pension payments to PESONet.

USAID/E-PESO will continue working with BIR on TSP accreditation with the systems development

of the TSP enrollment facility and drafting the memorandum circular for the TSP certification. Also,

through the EBP Project, USAID/E-PESO will work with BIR as one of the pilot government biller

institutions to enable online tax payments via EBP. USAID/E-PESO will support BIR to set-up a facility

that will enable the generation of payment reference numbers to allow taxpayers to use the EBP

service in Q1.

USAID/E-PESO will work with the DOF and the BSP to issue a regulation that will encourage, if not

require, all NGAs to adopt e-payments for both revenue collection and disbursement. USAID/E-PESO

will develop a playbook that will contain suggested steps in implementing e-payments, all relevant

regulations as references, and sample success stories of NGAs that have adopted e-payments. The

playbook is intended to serve as reference for NGAs implement e-payments beyond the USAID/E-

PESO life of project.

USAID/E-PESO will complete the pending deliverables of the PESONet marketing communications

awareness program to enhance the PESONet brand, increase demand-side awareness, and stimulate

demand especially among businesses and government corporations. As the PPMI is not yet able to

take over the administration and maintenance of PESONet’s digital assets (social media and landing

page), USAID-E-PESO will continue to perform this function until the end of December 2018. In anticipation of the release of the BSP Circular “Amendments to Regulations on Electronic Banking Services and Other Electronic Operations” where, among others, ACH participants will be mandated to market the EFT services, USAID/E-PESO will likewise provide minimal support to InstaPay in the design of the standard InstaPay poster and flyer. This is to ensure the alignment of common, consistent, complementary and positive image in the market of PESONet and InstaPay. Printing of the posters and fliers will continue to be the industry’s responsibility.


SUB-PURPOSE 2: INFRASTRUCTURE FOR E-PAYMENTS

EXPANDED USAID/E-PESO will support the payments industry participants to establish Agent Cash In/Cash Out

(CICO) ACH under the NRPS framework, which will enable bank and non-bank EMI customers to

convert their cash to e-money in their accounts and vice versa. USAID/E-PESO will link this initiative

with the DSWD Project with CICO agents as channel for disbursement of social subsidies in areas

not served by the banks (e.g., bank branches, ATMs, POS merchants, etc.). For Q1, the project expects

that the decision to establish the ACH will be made, and a working group is formed. USAID/E-PESO

aims to pilot the implementation of an interoperable CICO agent network in Q2.

USAID/E-PESO will continue to work with payments industry participants to establish an EBP service.

Following the approach recommended to the BSP, a consultation meeting / workshop with PPMI and

FIs will be conducted in Q1. Also, parallel consultation meetings with biller institutions, including

proposed pilot government billers will be conducted. PPMI will establish a working group to discuss

the business rules and infrastructure, including clearing and settlement rules in case a new ACH is

formed, which is needed to establish the EBP service.

USAID/E-PESO will support the payments industry participants to establish Quick Response (QR)

Code standards in identifying both merchants and account holders. The assistance will focus on the

conduct of consultation and education sessions to allow the payments industry to come to a decision

to adopt a national QR code standard for merchant payments and possibly, P2P payments.


IMPROVED Although not part of the approved workplan, USAID/E-PESO may need to provide assistance to the PPMI considering that there are unmet needs and expectations from current and prospective PPMI and ACH participants. Subject to further discussions with the PPMI and USAID, these may be in the following areas:

• Conduct a workshop for BSP and the PPMI Board of Directors to establish an NRPS Roadmap

to take into consideration the environment and market requirements;

• Processes to establish new ACH;

• NRPS and PPMI prospectus;

• PPMI and/or ACH starter packs

USAID/E-PESO will continue to work with the BSP as they take the catalyst role in shifting government payments to electronic payments. USAID/E-PESO will pursue supporting the BSP in digital security policy review. These activities will include the analysis of the results of the Control Self-Assessment (CSA) survey amongst selected BSFIs to assess overall readiness for compliance with the requirements of Circular No. 982.

SUB-PURPOSE 4 (CROSS-CUTTING): GAPS IN BROADER E-PAYMENT ECOSYSTEM ADDRESSED Local government unit (LGU) partner Legazpi City will launch e-payment services for payment of real

property taxes and business permits in the next quarter. Taxpayers can access the services via the

Filipizen online tax assessment and payment portal integrated with LBP's and DBP's Link.Biz portal and


Internet Payment Gateway, respectively. Legazpi City is also launching the City’s shift to using

PESONet ACH in disbursing payments to suppliers.

USAID/E-PESO will continue to assist partners Puerto Princesa and Gen. Santos cities transition from

cash collections to online payments. Puerto Princesa will be completing systems upgrade (from TRACS

to ETRACS) and data migration in the next quarter. Upon completion, the City can enact and formalize

agreements with electronic payments service providers and launch e-payment services. Gen. Santos

City, on the other hand, will complete the procurement for ETRACS and pass the local ordinance

institutionalizing electronic payments in the next quarter.

For LGUs already offering MVPs (Quezon City, Valenzuela City, Cagayan de Oro City), USAID/E-

PESO will design an information and promotion campaign that will deploy a mix of social media

promotion and traditional engagement (barangay campaigns, designated office/department to handle

inquiries and complaints). The campaign will be mounted to coincide with the deadline for business

permit payments (January 20) and real property tax payments.

USAID/E-PESO 4th Annual Report 63

ANNEX 1: Press Coverage and Mentions

Year 4 Quarter 4

Businesses to benefit from PESONet

Malaya - July 2, 2018 (Print and Online)

http://www.malaya.com.ph/business-news/special-features/businesses-benefit-pesonet

Cashless transactions soar in PH as gov’t, fin-tech firms push e-payment

Newsbytes.ph - July 5, 2018

http://newsbytes.ph/2018/07/05/cashless-transactions-soar-in-ph-as-govt-fin-tech-firms-push-e-

payment/


Manila Bulletin - July 6, 2018 (Print and Online)

https://technology.mb.com.ph/2018/07/06/businesses-to-benefit-from-pesonet/


Products Blog - July 7, 2018

https://www.productsblog.net/2018/07/businesses-to-benefit-from-pesonet.html

Cashless transactions, e-payments soar in PH

Manila Times - July 8, 2018 (Print and Online)

http://www.manilatimes.net/cashless-transactions-e-payments-soar-in-ph/416936/


Manila Informer - July 7, 2018

https://manilainformer.com/347956/businesses-to-benefit-from-pesonet/

Online payment still low among small firms

Business World, July 25, 2018 (Print and Online)

http://www.bworldonline.com/online-payment-adoption-still-low-among-small-firms/

Small firms still prefer paying via cash, checks

Manila Times, July 25, 2018 (Print and Online)

http://www.manilatimes.net/small-firms-still-prefer-paying-via-cash-checks/423088/

A look at E-Payments Only 10 percent used E-payments last year

Malaya Business Insight, July 30, 2018 (Print)

Gov't support shift to digital payments

Manila Standard, July 31, 2018 (Print and Online)

http://manilastandard.net/business/power-technology/271834/government-supports-shift-to-digital-

payments.html


Manila Informer, August 1, 2018 (Online)

https://manilainformer.com/358882/government-supports-shift-to-digital-payments/

Low cost fund transfers with PESONet

Inquirer, August 6, 2018 (Online)

http://business.inquirer.net/255164/low-cost-fund-transfers-pesonet


http://newsbytes.ph/2018/07/05/cashless-transactions-soar-in-ph-as-govt-fin-tech-firms-push-e-payment/








http://manilastandard.net/business/power-technology/271834/government-supports-shift-to-digital-payments.html






Neda Web, August 7, 2018 (Online)

http://governance.neda.gov.ph/low-cost-fund-transfers-with-pesonet/

Lazada PH bullish on PESONet

Malaya Business Insight, September 24, 2018 (Print and Online)

http://malaya.bayaninetwork.com/?q=business-news/special-features/lazada-ph-bullish-pesonet


Swirling Over Coffee, September 25, 2018 (Online)

http://www.swirlingovercoffee.com/lazada-philippines-bullish-on-pesonet-funds-transfer/

BSP plans more automated clearing house networks

Manila Bulletin - August 6, 2018 (Print and Online)

https://business.mb.com.ph/2018/08/06/bsp-plans-more-automated-clearing-house-networks/

Shifting gov’t fund releases to boost electronic payments

Business World - August 8, 2018

http://www.bworldonline.com/shifting-govt-fund-releases-to-boost-electronic-payments/

Blockchain Unit Formed By Philippines Central Bank

Block Tribune - August 7, 2018

https://blocktribune.com/blockchain-unit-formed-by-philippines-central-bank/

PH electronic fund transfers benefit from PESONet

Philippine News Agency - August 7, 2018

http://www.pna.gov.ph/articles/1044083

Mga bangko sa bansa, hinimok na tangkilikin ang PESONet System

SMNI News Channel - August 7, 2018

http://www.smninewschannel.com/13097-2/

“The Boss” featuring Gov. Nestor A. Espenilla, Jr. discussing financial inclusion, digitization and the

NRPS

ANC's The Boss - September 6, 2018.

https://www.youtube.com/watch?v=hy4bcEDdoGs

Radio interview, BSP’s Mary Rose Contreras, “Banner Story with Jake Maderazo & Arlyn Dela Cruz”

Inquirer 990 Television / DZIQ Radio - September 25, 2018

https://www.facebook.com/bannerstory.inq990tv/videos/271834523461416/UzpfSTEwMDAwMjI0Mz

U3MjQ1MjoxOTM4NzU5MjE2MjA4ODQ1/

Number of Pickups: 9 Print, 18 online, 2 broadcasts

Total Media Value Generated: PhP 81,730,527.65










https://www.facebook.com/bannerstory.inq990tv/videos/271834523461416/UzpfSTEwMDAwMjI0MzU3MjQ1MjoxOTM4NzU5MjE2MjA4ODQ1/



ANNEX 2: Summary of Results to Date by Key Indicator

Summary of Results by Key Indicator

As of September 30, 2018

Indicator DI 4: More predictable and reliable financial tools for the poor

Number of financial tools developed for the poor

Year 1 Quarter 4 (July – Sept 30, 2016)

- DSWD financial literacy tool and distribution of ATM/debit cards

Indicator 1.1: Adoption of e-payment services as monetary transaction (collection/

disbursement) option in five (5) national GPH agencies

Year 1 Quarter 4 (July 1 – Sept 30, 2015)

- Department of Social Welfare and Development (DSWD)

Year 2 Quarter 3 (Apr 1 – June 30, 2016)

- Bureau of Internal Revenue (BIR)

Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)

- National Meat Inspection Service (NMIS)

Year 4 Quarter 2 (Jan – March 2018)

- (no entries for this quarter)

Year 4 Quarter 3 (April - June 2018)


Year 4 Quarter 4 (September – November 2018)


Indicator 1.2: Adoption of m-Money and e-payments in all cities of PFG CDI and other

cities/municipalities

No. of CDIs (and other cities/municipalities) that introduced or enhanced m-Money and e-payment

options


- Cagayan de Oro City

- Pulilan, Bulacan

- Zamboanga City

Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)

- Batangas City

- Quezon City


- Valenzuela City


- Iloilo City








- Tagbilaran City

Indicator 1.3: Increased e-payment implementation and adoption to 500 SME (small,

medium, and large) businesses

Number of businesses introducing or enhancing e-payment options because of USAID/E-PESO

support


- Cagayan de Oro Electric Power & Light Company (CEPALCO)

- Cagayan de Oro Water District (COWD)

- Zamboanga City Water District (ZCWD)

- Palawan Electric Cooperative (PALECO)

Year 2 Quarter 4 (Jul 1 – Sept 30, 2016)

- University of the Visayas (UV)


− Taxumo integrated e-payments to their tax-filing software

Year 4 Quarter 2 (Jan – March 2018))

− No additional businesses on boarded for the Quarter





Indicator 1.4: Over 25,000 people trained (via financial education and literacy) on the

uses of e-payments and m-Money services for improved household financial

management

No. of people trained (via financial education and literacy) on the uses of e-payments


- DSWD – MCCT Davao del Norte (3 females)

- NCR – MCCT Training QC, 7/24/15 (13 females, 1 male)

- NCR – MCCT Training Manila, 8/8/15 (185 females, 18 males)

- E-payments Technology & Innovations for Business, Puerto Princesa City and local chambers

of commerce, 9/29 – 9/30 (31 females, 21 males)


- FICCO Training, 3/19/16 to 3/20/16 (2,455 of males, 6,421 females; 8,876 trained)



- FICCO Training, 2/2/17 and 2/3/17 (68 of males, 3 of females, 71 trained)

- Orientation on RPT Payments – QC Mezza Residents, 3/18/17 (42 males, 41 females, 83

trained)

Year 3 Quarter 3 (April 1 – June 30, 2017)

- Zamboanga City LGU Financial Literacy Orientation, 4/26/17 and 4/27/17 (68 males, 64

females, 132 trained)

- Tagbilaran City e-Payments Forum, 6/6/17 (24 males, 21 females, 45 trained)

- Tagbilaran City Social Media Marketing, eCommerce, and ePayments Workshop, 6/6/17 to

6/7/17 (10 males, 12 females, 22 trained)


− No additional end-users/clients trained for the Quarter


- (no entries for this quarter) Year 4 Quarter 4 (September – November 2018)


Indicator 2.1: Growth of front-end e-payment infrastructure expanded

No. of institutions supported by USAID/E-PESO to improve and/or expand their front-end

infrastructure



- Puerto Princesa City

- Pulilan (Bulacan)

- Zamboanga City

- Cagayan de Oro Electric Power and Light Company (CEPALCO)



- Puerto Princesa Water District (PPWD)


- Auto Top-Up Ventures Inc. (ATVI)


- Batangas City

- Quezon City

Year 2 Quarter 3 (Apr 1 – Jun 30, 2016)

- OmniPay

- Mynt


- Valenzuela City

- BIR

- Mindanao University of Science & Technology (MUST)



Year 3 Quarter 1 (October 1 – December 31, 2016)

- PayMaya


- Tagbilaran City

- Iloilo City


- Tagbilaran City

- Asia United Bank

- Banco De Oro Unibank, Inc.

- Bank of America, Nat'l. Ass

- Bank of China

- China Banking Corporation

- Chinabank Savings, Inc.

- Citibank, N. A.

- Ctbc Bank (Philippines) Cor

- Deutsche Bank

- Devt. Bank of the Philippines

- East-West Banking Corporation

- Equicom Savings Bank, Inc.

- HK and Shanghai Banking Cor

- JPMorgan Chase Bank

- Land Bank of the Philippine

- Maybank Phils. Inc.

- Metropolitan Bank and Trust

- Mitsubishi UFJ Financial Group

- Mizuho Bank,Ltd.

- Phil. Bank of Communication

- Philippine National Bank

- Philippine Savings Bank

- Rizal Commercial Banking Co

- Robinsons Bank Corporation

- Security Bank Corporation

- Shinhan Bank

- Sumitomo Mitsui Banking Cor

- The Standard Chartered Bank

- Union Bank of the Philippines

- United Coconut Planters Bank

Indicator 2.2: Back-end e-payment infrastructure strengthened

No. of institutions supported by USAID/E-PESO to improve and/or expand their back-end

infrastructure




- Pulilan (Bulacan)

- Zamboanga City

- Cagayan de Oro Electric Power and Light Company (CEPALCO)




- Puerto Princesa Water District (PPWD)


- Auto Top-Up Ventures Inc. (ATVI)


- Batangas City

- Quezon City


- BIR

- Mindanao University of Science & Technology (MUST)



- 33 banks and non-bank EMIs on-boarded and supported through PPMI




- (no entries for this quarter) Year 4 Quarter 4 (September – November 2018)

- Asia United Bank

- Australia & New Zealand Ban

- Banco De Oro Unibank, Inc.

- Bangkok Bank Public Co., Lt

- Bank of America, Nat'l. Ass

- Bank of China

- Bank of Commerce

- Bank of The Philippine Islands

- Bdo Private Bank

- China Banking Corporation

- Chinabank Savings, Inc.

- Citibank, N. A.

- Ctbc Bank (Philippines) Cor

- Deutsche Bank

- Devt. Bank of The Philippines

- East-West Banking Corporati

- Equicom Savings Bank, Inc.

- First Consolidated Bank

- G-Xchange, Inc.

- HK and Shanghai Banking Corp.

- Industrial Bank of Korea

- JPMorgan Chase Bank

- Keb Hana Bank

- Land Bank of the Philippine

- Malayan Bank Savings and Mortgage Bank, Inc.

- Maybank Phils., Inc.

- Mega Intl Comml Bank Co. Ltd

- Metropolitan Bank and Trust

- Mitsubishi Ufj Financial Group


- Mizuho Bank,Ltd.

- Omnipay, Inc.

- Partner Rural Bank (Cotabato), Inc.

- Paymaya Philippines, Inc.

- Phil. Bank of Communication

- Philippine National Bank

- Philippine Savings Bank

- Philippine Trust Company

- Philippine Veterans Bank

- Rizal Commercial Banking Co

- Rcbc Savings Bank. Inc.

- Robinsons Bank Corporation

- Security Bank Corporation

- Shinhan Bank

- Sterling Bank of Asia, Inc.

- Sumitomo Mitsui Banking Cor

- Sun Savings Bank, Inc.

- The Standard Chartered Bank

- Union Bank of The Philippin

- United Coconut Planters Ban

- United Overseas Bank Phils.

- Yuanta Savings Bank

Indicator 2.3. E-payment infrastructure gaps identified

Number of gap analysis reports at industry or ecosystem level


- E-payments Landscape


- Philippine Individual Payments Baseline Survey

- Philippine Agent Network Study


- Gap analysis Report on the Assessment of Existing BSP Digital Security Policy Areas vis-à-vis

Recommended Leading Standards on Digital Security Policies



Indicator 3.1: Financial regulation refined to manage growth of e-payments

a. No. of circulars, regulations, and/or local ordinances refined or clarified to support e-payment

growth

Year 1 Quarter 4 (Jul 1 – Sep 30, 2015)

- Zamboanga City Council Resolution No. 1067 issued last Sept 15, 2015

- Puerto Princesa Executive Order 15 Series 2015 issued last Sept 21, 2015


- 2016 National Expenditure Program, Section 76 (supports adoption and compliance to e-

payments in all government transactions)


- Puerto Princesa City Council Ordinance passed last December 2015


- BIR Regulation 3-2016 issued last March 23, 2016


- Joint Memorandum Circular 01-2016 issued last August 30, 2016

- Tagbilaran City Executive Order 23 Series of 2016 issued last Sept 21, 2016


- Tagbilaran City Ordinance No. 21-16 issued November 3, 2016


- Circular No. 980: Adoption of National Retail Payment System (NRPS) Framework.

Year 4 Quarter 2 (January 1 – March 31, 2018)

- BSP Memorandum No. M - 2018-12 - Guidelines on the National Retail Payment System

(NRPS) Key Principles and Specific Rules Applicable thereto on March 23, 2018

- BSP Memorandum No. M-2018-013 - Disclosure of Fees on Electronic Payments Pursuant to

Circular 980 on March 28, 2018

- Circular No. 1000, Guidelines on the Settlement of Instant Retail Payments on April 23,

2018

Year 4 Quarter 4 (July 1 – September 30, 2018)

- BSP Memorandum No. M-2018-021 - Frequently Asked Questions on Anti-Money

Laundering -related concerns on the adoption of National Retail payment systems

Framework on August 10, 2018

- BSP Memorandum No. M-2018-026 - Availability of InstaPay and PESONet in all existing

electronic delivery channels on September 4, 2018

- Legazpi City local ordinances institutionalizing the use of electronic payments for financial

transactions with the City on August 13, 2018

b. No. of public-private dialogues to support strengthening e-payment environment


- NATCCO General Assembly (May 23-24, 2015)


- Launch of the National Strategy for Financial Inclusion (July 1, 2015)

- Dialogue of Queen Maxima and Philippine banking industry and other players (July 2015)

- DILG Regional ICT Forum – Mindanao (September 3, 2015)

- DILG Regional ICT Forum – Luzon (September 16, 2015)

- DILG Regional ICT Forum – Visayas (September 22, 2015)

- Chief Information Officers Foundation Forum (September 30, 2015)


- Philippine Agent Network Study Launch (October 26, 2015)

- Remittance for Development Council Meeting (November 6, 2015)

- NEA-Electric Cooperatives Consultation Session (November 26, 2015)

- Launch of the NRPS (December 9, 2015)

- BSP-CEOs Conference Meetings (December 2015)



- SURGE Stakeholder's Forum - Batangas City (January 19, 2016)

- SURGE Stakeholder’s Forum - Tagbilaran City (January 26-27, 2016)


- Innovative Strategies for Development Summit 2016 (June 8-10)

- CDO MSME Business Forum, Cagayan de Oro City (June 10-11)

- Impact of M-Money in the Bottom of the Pyramid Summit (June 17)


- Digital Congress: “The Power of X” organized by IMMAP (October 12, 2016)

- Information and Communications Technology (ICT) Forum organized by DILG (October 27,

2016)

Year 3 Quarter 2 (Jan. 1 – Mar. 31, 2017)

- BSP-Banking Industry Workshop on NRPS (Feb. 3, 2017)

- Future of Commerce: Philippines Meetup (Feb. 23, 2017)


- Various NRPS Consultations with PSMB, BAP, RBAP, CDA, NATCCO, etc. (May and June

2017)

- Survey Design Workshop for e-Payments (June 9, 2017)


- National LGU ICT Forum (October 19, 2017)

- Launch of PESO Net ACH (November 8, 2017)

- NRPS Roadshow – Manila (November 20-23, 2017)

- NRPS Roadshow – Cebu (November 20-23, 2017)

- NRPS Roadshow – Iloilo (November 20-23, 2017)

- NRPS Roadshow – Cagayan de Oro (November 20-23, 2017)

- NRPS Roadshow – Davao (November 28, 2017)

- 1st National Association of Business Permit and Licensing Officer (NABPLO) National

Convention (November 28/29, 2017)

Year 4 Quarter 2 (Jan-March 2018)

- BSP InstaPay Forum (January 31, 2018)



Indicator 3.5: Security measures in e-payments strengthened

No. of guidelines developed, and forums held that promote awareness on digital security best

practices or consumer protection


- FICCO Training, 3/19/16 to 3/20/16 (2,455 of males, 6,421 females; 8,876 trained)


- Orientation on RPT Payments – QC Mezza Residents, 3/18/17 (42 males, 41 females, 83

trained)









- Securing and Auditing the Cloud Environment, 2/5/2018 (7 males, 8 females, 15 trained)

- Securing of ATMs, Online or Mobile Banking, and other emerging channels, 2/12/2018 and

2/13/2018 (12 males and 19 females, 31 trained on Day 1and 5 males, 9 females, 14 trained

on Day 2)

- Basic Concepts on PCI-DSS, 3/6/2018 (12 males, 21 females, 31 trained)

- Cybersecurity Essentials and Assessment, 3/20/2018 (8 males, 15 females, 23 trained)



Indicator 3.6: Global knowledge-sharing on e-payments promoted

a. No. of articles promoting e-payments

Year 1 (March 18 – Sept 30, 2016)

Philippines pushing for cashless society, but it’s a long way off

April 25, 2015 | techinasia.com

https://www.techinasia.com/philippines-cashless-

society/?utm_source=search&utm_medium=web&utm_campaign=%2Fphilippines-cashless-

society%2F

MVP pushes digital payments to fast-track financial inclusion in Philippines

July 27, 2015 | The Philippine Star (philstar.com)

http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-

financial-inclusion-philippines

USAID, LGU to launch E-PESO activity

August 3, 2015 | Daily Zamboanga Times

http://zamboangatimes.ph/top-news/15657-usaid-lgu-to-launch-e-peso-activity-.html

Smart cites digital payment’s relevance

August 11, 2015 | The Daily Tribune

http://www.tribune.net.ph/business/smart-cites-digital-payment-s-relevance

Prepaid cards for cash transfer distributed to street families, indigenous people, etc.

August 12, 2015 | philnews.com

http://philnews.com/headlines/2015/headline_news_0813ag.htm

More convenient: Prepaid cards distributed to CCT beneficiaries

August 13, 2015 | moveon.ph

http://www.moveon.ph/more-convenient-prepaid-cards-distributed-to-cct-beneficiaries/

Beng, USAID launch E-PESO system in ZC

August 28, 2015 | Daily Zamboanga Times

http://zamboangatimes.ph/top-news/15930-beng-usaid-launch-e-peso-system-in-zc.html

https://www.techinasia.com/philippines-cashless-society/?utm_source=search&utm_medium=web&utm_campaign=%2Fphilippines-cashless-society%2F



http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-financial-inclusion-philippines

http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-financial-inclusion-philippines

http://zamboangatimes.ph/top-news/15657-usaid-lgu-to-launch-e-peso-activity-.html

http://www.tribune.net.ph/business/smart-cites-digital-payment-s-relevance

http://philnews.com/headlines/2015/headline_news_0813ag.htm

http://www.moveon.ph/more-convenient-prepaid-cards-distributed-to-cct-beneficiaries/

http://zamboangatimes.ph/top-news/15930-beng-usaid-launch-e-peso-system-in-zc.html


Zambo, USAID launch E-PESO program

August 28, 2015 | Zimnet New

http://www.zimnet.com/archives/1195-Zambo,-USAID-launch-E-Peso-program.html

Zamboanga Mayor Beng Climaco lauded for dynamic leadership

August 28, 2015 | Mindanao Examiner

http://mindanaoexaminer.com/zamboanga-mayor-beng-climaco-lauded-for-dynamic-leadership/

Program to help PH achieve 20-fold increase in e-payments

August 31, 2015 | Mindanao Times

http://mindanaotimes.net/program-to-help-ph-achieve-20-fold-increase-in-e-payments/

USAID cites Zambo’s role as engine of growth

September 1, 2015 | Zamboanga Today Online

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-

of-growth-.html

USAID launches E-PESO project in Zambo

September 2, 2015 | pia.gov.ph (Philippine News Agency)

http://news.pia.gov.ph/article/view/2831441184029/usaid-launches-e-peso-project-in-zambo

“E-PESO Activity” in Zamboanga

September 22, 2015 | The Manila Times Online

http://www.manilatimes.net/e-peso-activity-in-zamboanga/220104/

ULAP co-organizes conduct of LGU ICT FORUM Mindanao Leg in Cagayan de Oro City

September 2015 | ulap.net.ph

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-

of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti


Microsoft enters partnership to promote e-payment

October 22, 2015

http://www.tribune.net.ph/business/microsoft-enters-partnership-to-promote-e-payment

USAID lauds PHL for improving e-payment infrastructure

Business Mirror November 18, 2015

http://www.businessmirror.com.ph/usaid-lauds-phl-for-improving-e-payment-infrastructure/

City gears for e-Peso project take-off

Zamboanga Today December 29, 2015

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-

off.html

Zamboanga City set to launch e-Pesos project

Sunstar Zamboanga December 31, 2015

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-

pesos-project-449526


http://www.zimnet.com/archives/1195-Zambo,-USAID-launch-E-Peso-program.html

http://mindanaoexaminer.com/zamboanga-mayor-beng-climaco-lauded-for-dynamic-leadership/

http://mindanaotimes.net/program-to-help-ph-achieve-20-fold-increase-in-e-payments/

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-of-growth-.html

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-of-growth-.html

http://news.pia.gov.ph/article/view/2831441184029/usaid-launches-e-peso-project-in-zambo

http://www.manilatimes.net/e-peso-activity-in-zamboanga/220104/

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti

http://www.tribune.net.ph/business/microsoft-enters-partnership-to-promote-e-payment

http://www.businessmirror.com.ph/usaid-lauds-phl-for-improving-e-payment-infrastructure/

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-off.html

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-off.html

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-pesos-project-449526

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-pesos-project-449526


USAID to hold two-day caravan for market vendors

Mindanao Daily News | February 18, 2016

http://www.mindanaodailynews.com/usaid-to-hold-two-day-caravan-for-market-vendors/

USAID, CDO speed up market stall payment via e-Bayad Tour

pia.gov.ph | February 23, 2016

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-

via-e-bayad-tour-

Mobile money, other e-payment options featured at QC

e-Bayad Tour caravan

quezoncity.gov.ph | March 2016

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-

options-featured-at-qc-e-bayad-tour-caravan


QC, USAID conduct e-Bayad Tour Caravan

Philippine Information Agency | April 7, 2016

http://news.pia.gov.ph/article/view/231459994344/qc-usaid-conduct-e-bayad-tour-caravan-

BIR, GCash relaunch e-filing, payments tie-up

The Manila Times | April 12, 2016

http://www.manilatimes.net/bir-gcash-relaunch-e-filing-payments-tie-up/255703/

BIR, Globe relaunch mobile income tax payment system

The Standard | April 12, 2016

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-

system.html

BIR, GCash relaunch first e-tax filing and payment system in PH

Manila Bulletin | April 13, 2016

http://www.mb.com.ph/bir-gcash-relaunch-first-e-tax-filing-and-payment-system-in-ph/

BIR, GCash relaunch first e-tax filing, payment system

SunStar | April 13, 2016

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-

payment-system-467732

Philippines’s tax bureau taps mobile payment tax collection

Enterpriseinnovation.net | April 19, 2016

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-

collection-177741850

Globe's GCash adapted for tax payment

Telecom Asia | April 19, 2016

http://www.telecomasia.net/content/globes-gcash-adapted-tax-payment


2016 International Conference on Development: Oca, 6 Others Banner CDO Delegation To

International Confab on Urban Development

http://www.mindanaodailynews.com/usaid-to-hold-two-day-caravan-for-market-vendors/

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-via-e-bayad-tour-

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-via-e-bayad-tour-

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-options-featured-at-qc-e-bayad-tour-caravan

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-options-featured-at-qc-e-bayad-tour-caravan

http://news.pia.gov.ph/article/view/231459994344/qc-usaid-conduct-e-bayad-tour-caravan-

http://www.manilatimes.net/bir-gcash-relaunch-e-filing-payments-tie-up/255703/

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-system.html

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-system.html

http://www.mb.com.ph/bir-gcash-relaunch-first-e-tax-filing-and-payment-system-in-ph/

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-payment-system-467732

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-payment-system-467732

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-collection-177741850

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-collection-177741850

http://www.telecomasia.net/content/globes-gcash-adapted-tax-payment


www.kagay-an.com | July11, 2016

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-

delegation-intl-confab-urban-development/

QC shares best practices in electronic payment at USAID international conference

Philippine Information Agency | July 14, 2016

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-

payment-at-usaid-international-conference

Digital Commerce Expo Set to Revolutionize the Philippines This September 6-7

Yahoo Finance | August 17, 2016

http://finance.yahoo.com/news/digital-commerce-expo-set-revolutionise-020000870.html

Digital Commerce Expo Set to Revolutionize the Philippines This September 6-7

Korea IT Times | August 22, 2016

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-

september-6-7

Advocates seek to boost e-payments growth by 2020

Rappler | September 6, 2016

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-

pilipinas

Year 3 Quarter 2 (Jan. 1 – Mar. 31, 2017)

BSP set to launch new retail payments system

The Manila Standard | Mar. 8, 2017

http://thestandard.com.ph/business/banking-report/231260/bsp-set-to-launch-new-retail-

payments-system.html

BSP eyes two modes to boost NRPS implementation

The Manila Bulletin | Mar. 8, 2017

http://business.mb.com.ph/2017/03/08/bsp-eyes-two-modes-to-boost-nrps-implementation/

BSP eyes agreements with financial firms for NRPS

Business World | Mar. 9, 2017

http://www.bworldonline.com/content.php?section=Finance&title=bsp-eyes-agreements-with-

financial-firms-for-nrps&id=141893

Media coverage of signing of PSMB Charter

E-payments to spur faster economic growth – BSP

The Manila Times | Apr. 1, 2017

http://www.manilatimes.net/e-payments-spur-faster-economic-growth-bsp/320343/

ACHs to pave way for BSP’s retail e-payments

The Manila Bulletin | Apr. 1, 2017

http://business.mb.com.ph/2017/04/01/achs-to-pave-way-for-bsps-retail-e-payments/

Firms set up e-payments clearing houses

Business World | Apr. 1, 2017

http://www.bworldonline.com/content.php?section=Finance&title=firms-set-up-e-payments-

clearing-houses&id=143107

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-delegation-intl-confab-urban-development/

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-delegation-intl-confab-urban-development/

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-payment-at-usaid-international-conference

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-payment-at-usaid-international-conference

http://finance.yahoo.com/news/digital-commerce-expo-set-revolutionise-020000870.html

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-september-6-7

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-september-6-7

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-pilipinas

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-pilipinas

http://thestandard.com.ph/business/banking-report/231260/bsp-set-to-launch-new-retail-payments-system.html

http://thestandard.com.ph/business/banking-report/231260/bsp-set-to-launch-new-retail-payments-system.html

http://business.mb.com.ph/2017/03/08/bsp-eyes-two-modes-to-boost-nrps-implementation/

http://www.bworldonline.com/content.php?section=Finance&title=bsp-eyes-agreements-with-financial-firms-for-nrps&id=141893

http://www.bworldonline.com/content.php?section=Finance&title=bsp-eyes-agreements-with-financial-firms-for-nrps&id=141893

http://www.manilatimes.net/e-payments-spur-faster-economic-growth-bsp/320343/

http://business.mb.com.ph/2017/04/01/achs-to-pave-way-for-bsps-retail-e-payments/

http://www.bworldonline.com/content.php?section=Finance&title=firms-set-up-e-payments-clearing-houses&id=143107

http://www.bworldonline.com/content.php?section=Finance&title=firms-set-up-e-payments-clearing-houses&id=143107


BSP, banks establish shared clearing settlements system

The Philippine Star | Apr. 1, 2017

http://www.philstar.com/business/2017/04/01/1686396/bsp-banks-establish-shared-clearing-

settlements-system

Philippines to Establish Shared Clearing, Settlements System

Regulation Asia | April 3, 2017

http://www.regulationasia.com/content/philippines-establish-shared-clearing-settlements-system

Media coverage of Zamboanga City launch

Zamboanga City gov’t, USAID, DBP, online tax payment

Sunstar | Mar. 28, 2017

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/28/zamboanga-city-govt-usaid-dbp-

online-tax-payment-533513

City gov’t completes online payment system

Sunstar | Mar. 25, 2017

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/25/city-govt-completes-online-

payment-system-533053

USAID, City launch online payment for real property tax

Zamboanga Today | Mar. 2017

http://www.zamboangatoday.ph/index.php/top-stories/21177-usaid-city-launch-online-payment-

for-real-property-tax.html


BSP signs measures to expand e-commerce in the Philippines

GMA News Online | April 12, 2017

http://www.gmanetwork.com/news/story/606807/money/economy/bsp-signs-measures-to-

expand-e-commerce-in-the-philippines


BSP launches PESO Net

Bangko Sentral ng Pilipinas | November 8, 2017

http://www.bsp.gov.ph/publications/media.asp?id=4529

Central Bank launches PESO Net

The Philippine Star & The Freeman | November 8, 2017

http://www.philstar.com/cebu-business/2017/11/10/1757298/central-bank-launches-pesonet

PESO Net benefits touted by BSP chief

The Manila Times | November 9, 2017

http://www.manilatimes.net/pesonet-benefits-touted-bsp-chief/361602/

BSP accelerates retail payments with PESO Net

Malaya Business Insight | November 13, 2017

http://malaya.com.ph/business-news/special-features/bsp-accelerates-retail-payments-pesonet

From Zero to Hero: Building an E-payments Model from Scratch

Chemonics International | December 12, 2017

http://www.philstar.com/business/2017/04/01/1686396/bsp-banks-establish-shared-clearing-settlements-system

http://www.philstar.com/business/2017/04/01/1686396/bsp-banks-establish-shared-clearing-settlements-system

http://www.regulationasia.com/content/philippines-establish-shared-clearing-settlements-system

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/28/zamboanga-city-govt-usaid-dbp-online-tax-payment-533513

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/28/zamboanga-city-govt-usaid-dbp-online-tax-payment-533513

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/25/city-govt-completes-online-payment-system-533053

http://www.sunstar.com.ph/zamboanga/local-news/2017/03/25/city-govt-completes-online-payment-system-533053

http://www.zamboangatoday.ph/index.php/top-stories/21177-usaid-city-launch-online-payment-for-real-property-tax.html

http://www.zamboangatoday.ph/index.php/top-stories/21177-usaid-city-launch-online-payment-for-real-property-tax.html

http://www.gmanetwork.com/news/story/606807/money/economy/bsp-signs-measures-to-expand-e-commerce-in-the-philippines


http://www.bsp.gov.ph/publications/media.asp?id=4529

http://www.philstar.com/cebu-business/2017/11/10/1757298/central-bank-launches-pesonet

http://www.manilatimes.net/pesonet-benefits-touted-bsp-chief/361602/

http://malaya.com.ph/business-news/special-features/bsp-accelerates-retail-payments-pesonet


https://www.chemonics.com/e-payments-modeling-zero-hero/


Is the Philippines Ready To Go Cashless?

IMoney.ph | January 4, 2018

https://www.imoney.ph/articles/cashless-payment-philippines/

PPMI tapped as partner in retail payment system

The Philippine Star | January 17, 2018

https://www.philstar.com/business/2018/01/17/1778398/ppmi-tapped-partner-retail-payment-

system

Payments management body recognized

The Manila Times | January 17, 2018

http://www.manilatimes.net/payments-management-body-recognized/374779/

BSP, PPMI partner to boost retail payment system

The Daily Guardian | January 18, 2018

https://thedailyguardian.net/business/bsp-ppmi-partner-boost-retail-payment-system/

BSP to launch digital payments clearing house in January

Retail News Asia | February 01, 2018

https://www.retailnews.asia/bsp-launch-digital-payments-clearing-house-january/

The long road ahead in digitizing the payments space in the Philippines

The Asian Banker | February 26, 2018

http://www.theasianbanker.com/updates-and-articles/the-long-road-ahead-in-digitising-the-

payments-space-in-the-philippines

BSP requires banks to set up e-payment channels

Interaksyon.com | March 28, 2018

http://www.interaksyon.com/bsp-requires-banks-to-set-up-e-payment-channels/


Bangko Sentral launches InstaPay instant fund transfer system

ABS-CBN News-22 Apr 2018

http://news.abs-cbn.com/business/04/23/18/bangko-sentral-launches-instapay-instant-fund-

transfer-system

Paymaya taps BSP's Instapay

Inquirer.net-24 Apr 2018

http://business.inquirer.net/249773/paymaya-taps-bsps-instapaypaymaya-launches-instapay-

service

PayMaya expands 'Add Money' channels through InstaPay and bank ...

Manila Bulletin-23 Apr 2018

https://technology.mb.com.ph/2018/04/24/paymaya-expands-add-money-channels-through-

instapay-and-bank-partners/

PayMaya now using InstaPay

Business Mirror-24 Apr 2018

https://www.chemonics.com/e-payments-modeling-zero-hero/

https://www.imoney.ph/articles/cashless-payment-philippines/

http://bworldonline.com/#facebook

http://bworldonline.com/#facebook

https://www.philstar.com/business/2018/01/17/1778398/ppmi-tapped-partner-retail-payment-system

https://www.philstar.com/business/2018/01/17/1778398/ppmi-tapped-partner-retail-payment-system

http://www.manilatimes.net/payments-management-body-recognized/374779/

https://thedailyguardian.net/business/bsp-ppmi-partner-boost-retail-payment-system/

https://www.retailnews.asia/bsp-launch-digital-payments-clearing-house-january/

http://www.theasianbanker.com/updates-and-articles/the-long-road-ahead-in-digitising-the-payments-space-in-the-philippines

http://www.theasianbanker.com/updates-and-articles/the-long-road-ahead-in-digitising-the-payments-space-in-the-philippines

http://www.interaksyon.com/bsp-requires-banks-to-set-up-e-payment-channels/

http://news.abs-cbn.com/business/04/23/18/bangko-sentral-launches-instapay-instant-fund-transfer-system

http://news.abs-cbn.com/business/04/23/18/bangko-sentral-launches-instapay-instant-fund-transfer-system

http://business.inquirer.net/249773/paymaya-taps-bsps-instapaypaymaya-launches-instapay-service

http://business.inquirer.net/249773/paymaya-taps-bsps-instapaypaymaya-launches-instapay-service

https://technology.mb.com.ph/2018/04/24/paymaya-expands-add-money-channels-through-instapay-and-bank-partners/

https://technology.mb.com.ph/2018/04/24/paymaya-expands-add-money-channels-through-instapay-and-bank-partners/


https://businessmirror.com.ph/paymaya-now-using-instapay/

UnionBank bats for inclusive wealth via InstaPay, PESONet

Philippine Star-5 May 2018

https://www.philstar.com/business/2018/05/06/1812436/unionbank-bats-inclusive-wealth-

instapay-pesonet

BSP: support retail payment system

Sun.Star-21 Jun 2018

https://www.sunstar.com.ph/article/1749192/Cebu/Business/BSP-support-retail-payment-system

BSP launches electronic fund transfer service

The Standard-25 Apr 2018

http://www.thestandard.com.ph/business/power-technology/263894/bsp-launches-electronic-

fund-transfer-service.html

BSP to launch 2 automated clearing operations on April 23


https://business.mb.com.ph/2018/04/14/bsp-to-launch-2-automated-clearing-operations-on-april-

23/

BSP thinking ahead on electronic payments

The Manila Times-2 May 2018

http://www.manilatimes.net/bsp-thinking-ahead-on-electronic-payments/396520/

BSP launches platform for real-time epayments

Philippine Star-21 Apr 2018

https://www.philstar.com/business/2018/04/22/1808147/bsp-launches-platform-real-time-

epayments

ACHs to pave way for BSP's retail e-payments


https://business.mb.com.ph/2017/04/01/achs-to-pave-way-for-bsps-retail-e-payments/

BSP signs measures to expand e-commerce in the Philippines

GMA News-11 Apr 2017

http://www.gmanetwork.com/news/story/606807/money/economy/bsp-signs-measures-to-

expand-e-commerce-in-the-philippines

Year 4 Quarter 4 (July – September 2018)


Malaya - July 2, 2018 (Print and Online)


Cashless transactions soar in PH as gov’t, fin-tech firms push e-payment

Newsbytes.ph - July 5, 2018

http://newsbytes.ph/2018/07/05/cashless-transactions-soar-in-ph-as-govt-fin-tech-firms-push-e-

payment/


Manila Bulletin - July 6, 2018 (Print and Online)

https://businessmirror.com.ph/paymaya-now-using-instapay/

https://www.philstar.com/business/2018/05/06/1812436/unionbank-bats-inclusive-wealth-instapay-pesonet

https://www.philstar.com/business/2018/05/06/1812436/unionbank-bats-inclusive-wealth-instapay-pesonet

https://www.sunstar.com.ph/article/1749192/Cebu/Business/BSP-support-retail-payment-system

http://www.thestandard.com.ph/business/power-technology/263894/bsp-launches-electronic-fund-transfer-service.html

http://www.thestandard.com.ph/business/power-technology/263894/bsp-launches-electronic-fund-transfer-service.html

https://business.mb.com.ph/2018/04/14/bsp-to-launch-2-automated-clearing-operations-on-april-23/

https://business.mb.com.ph/2018/04/14/bsp-to-launch-2-automated-clearing-operations-on-april-23/

http://www.manilatimes.net/bsp-thinking-ahead-on-electronic-payments/396520/

https://www.philstar.com/business/2018/04/22/1808147/bsp-launches-platform-real-time-epayments

https://www.philstar.com/business/2018/04/22/1808147/bsp-launches-platform-real-time-epayments

https://business.mb.com.ph/2017/04/01/achs-to-pave-way-for-bsps-retail-e-payments/









Products Blog - July 7, 2018


Cashless transactions, e-payments soar in PH

Manila Times - July 8, 2018 (Print and Online)



Manila Informer - July 7, 2018


Online payment still low among small firms

Business World, July 25, 2018 (Print and Online)


Small firms still prefer paying via cash, checks

Manila Times, July 25, 2018 (Print and Online)


A look at E-Payments Only 10 percent used E-payments last year

Malaya Business Insight, July 30, 2018 (Print)


Manila Standard, July 31, 2018 (Print and Online)

http://manilastandard.net/business/power-technology/271834/government-supports-shift-to-

digital-payments.html


Manila Informer, August 1, 2018 (Online)



Inquirer, August 6, 2018 (Online)



Neda Web, August 7, 2018 (Online)



Malaya Business Insight, September 24, 2018 (Print and Online)



Swirling Over Coffee, September 25, 2018 (Online)


BSP plans more automated clearing house networks

Manila Bulletin - August 6, 2018 (Print and Online)

















Shifting gov’t fund releases to boost electronic payments

Business World - August 8, 2018


Blockchain Unit Formed By Philippines Central Bank

BlockTribune - August 7, 2018


PH electronic fund transfers benefit from PESONet

Philippine News Agency - August 7, 2018


Mga bangko sa bansa, hinimok na tangkilikin ang PESONet System

SMNI News Channel - August 7, 2018


“The Boss” featuring Gov. Nestor A. Espenilla, Jr. discussing financial inclusion, digitization and

the NRPS

ANC's The Boss - September 6, 2018.


Radio interview, BSP’s Mary Rose Contreras, “Banner Story with Jake Maderazo & Arlyn Dela

Cruz”

Inquirer 990 Television / DZIQ Radio - September 25, 2018

https://www.facebook.com/bannerstory.inq990tv/videos/271834523461416/UzpfSTEwMDAwMj

I0MzU3MjQ1MjoxOTM4NzU5MjE2MjA4ODQ1/

b. No. of global knowledge-sharing events that highlight the Philippines e-payment

environment/players


- Cards & Payments Philippines 2015, Manila, Philippines (September 2-3, 2015)

- G-20 Responsible Finance Forum, Istanbul, Turkey (September 2015)


- Mondato Summit Asia, Manila, Philippines (October 20-22, 2015)

- Financial Times - Citibank Asia Pacific Financial Inclusion Summit, Manila, Philippines

(October 26-29, 2015)


- Innovative Strategies for Development Summit 2016, Crowne Plaza Hotel, Ortigas Center,

Pasig City (June 8-10, 2016)


- 2016 International Conference on Urban Development, Sofitel Plaza, Pasay City (July 12-13,

2016)

- Cards and Payments 2016, SMX Mall of Asia, Pasay City (September 6-7, 2016)


- Seamless Payments Asia, Singapore (April 19-20, 2017)










- Seamless Payments Philippines, SMX Mall of Asia, Pasay City (September 27-28, 2017)


- Evaluation 2017, American Evaluation Association, Washington Marriot Hotel, Washington

DC, USA (November 8-11, 2017)





2.2.3 Local Government and Decentralization

2.2.3-5 Number of sub-national entities receiving USG assistance that improve their performance



- Pulilan, Bulacan

- Zamboanga City


- Batangas City

- Quezon City


- Valenzuela City


- Tagbilaran City

- Iloilo City


- National Meat Inspection Service (NMIS)





PPP Public/Private Partnerships

PPP3 Number of organizations (for and not-for-profit, and government) that have applied new

technologies and/or management practices due to USG-supported Public-Private Partnerships (PPPs)



- Pulilan, Bulacan

- Zamboanga City

- Department of Social Welfare and Development (DSWD)



- Cagayan de Oro Electric Power & Light Company (CEPALCO)





- Batangas City

- Quezon City


- Bureau of Internal Revenue (BIR)


- Valenzuela City



- Tagbilaran City


- Iloilo City


- Philippine Payments Management Inc. (PPMI)

- Rameses





EG.4.2-2 Number of financial intermediaries serving poor households and

microenterprises supported by USG assistance


- Land Bank of the Philippines


GNDR Gender GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to productive

economic resources (assets, credit, income or employment)

Male Female Total % Male % Female

Year 1

DSWD – MCCT Davao del Norte - 3 3 0% 100%

NCR – MCCT Training QC, 7/24/15 1 13 14 7% 93%

NCR – MCCT Training Manila, 8/8/15 18 185 203 9% 91%

E-payments Technology & Innovations for Business, Puerto Princesa City and

local chambers of commerce, 9/29 – 9/30

21 31 52 40% 60%

Year 1 Total 40 232 272 15% 85%

Year 2

FICCO Training, 3/19/16 to 3/20/16 2,455 6,421 8,876 28% 72%

Year 2 Total 2,455 6,421 8,876 28% 72%

Year 3

FICCO Training, 2/2/17 and 2/3/17 68 3 71 96% 4%

Orientation on RPT Payments – QC

Mezza Residents, 3/18/17

42 41 83 51% 49%

FICCO Financial Literacy Orientation, 4/26/17 and 4/27/17

68 64 132 52% 48%

Tagbilaran City E-payments Forum, 6/6/17

24 21 45 53% 47%

Tagbilaran City Social Media Marketing,

eCommerce, and ePayments Workshop,

6/6/17 to 6/7/17

10 12 22 45% 55%

Year 3 Total 212 141 353 60% 40%

Year 4

Year 4 Total (as of 3/31/2018) n/a n/a n/a n/a n/a

Cumulative 2,707 6,794 9,501 28% 72%


ANNEX 3: Institutions with PESONet and/or

InstaPay-enabled Products Available on their

Internet and/or Mobile Channels

Indicator 2.1: Infrastructure of E-Payments Expanded

Number of institutions supported by E-PESO to improve and/or expand their front-end

infrastructure

PESONet INSTAPAY

SENDING

SENDING INTERNET MOBILE

Financial Institution License Corporate Individual Corporate Individual

1 ASIA UNITED BANK UB 1

2 BANCO DE ORO UNIBANK, INC. UB 1

3 BANK OF AMERICA, NAT'L. ASS KB 1 4 BANK OF CHINA KB 1 1 5 CHINA BANKING CORPORATION UB 1

6 CHINABANK SAVINGS, INC. TB 1

7 CITIBANK, N. A. KB 1 1 1 8 CTBC BANK (PHILIPPINES) COR KB 1 1 9 DEUTSCHE BANK UB 1 n/a

10 DEVT. BANK OF THE PHILIPPIN UB 1 1 11 EAST-WEST BANKING CORPORATI UB 1 1 12 EQUICOM SAVINGS BANK, INC. TB 1

13 HK AND SHANGHAI BANKING COR UB 1 1 1 1 14 JPMORGAN CHASE BANK KB 1 n/a n/a 15 LAND BANK OF THE PHILIPPINE UB 16 MAYBANK PHILS.,INC. KB 1 1 1

17 METROPOLITAN BANK AND TRUST UB 1

18 MITSUBISHI UFJ Financial Group KB 1 19 MIZUHO BANK,LTD. UB 1 20 PHIL. BANK OF COMMUNICATION KB 1

21 PHILIPPINE NATIONAL BANK UB 1 1 22 PHILIPPINE SAVINGS BANK TB 1 1 1

23 RIZAL COMMERCIAL BANKING CO UB 1 1

24 ROBINSONS BANK CORPORATION KB 1 1 1 25 SECURITY BANK CORPORATION UB 1

26 SHINHAN BANK KB 1 1 27 SUMITOMO MITSUI BANKING COR KB 1 28 THE STANDARD CHARTERED BANK UB 1 29 UNION BANK OF THE PHILIPPIN UB 1 1 1 1

30 UNITED COCONUT PLANTERS BANK UB 1 1 1


Annex 4: Institutions Connected to PESONet’s

and/or InstaPay’s Clearing Switch Operators (CSO)

Indicator 2.2: Back-end e-payment infrastructure strengthened

Number of institutions supported by E-PESO to improve and/or expand their back-end

infrastructure

Financial Institution License

PESONET RECEIVING

INSTAPAY RECEIVING

1 ASIA UNITED BANK UB 1 1

2 AUSTRALIA & NEW ZEALAND BAN UB 1 3 BANCO DE ORO UNIBANK, INC. UB 1 1

4 BANGKOK BANK PUBLIC CO., LT KB 1 5 BANK OF AMERICA, NAT'L. ASS KB 1 6 BANK OF CHINA KB 1 7 BANK OF COMMERCE KB 1 1

8 BANK OF THE PHILIPPINE ISLA UB 1 9 BDO Private Bank KB 1

10 CHINA BANKING CORPORATION UB 1 1

11 CHINABANK SAVINGS, INC. TB 1 1

12 CITIBANK, N. A. KB 1 13 CTBC BANK (PHILIPPINES) COR KB 1 1

14 DEUTSCHE BANK UB 1 15 DEVT. BANK OF THE PHILIPPIN UB 1 16 EAST-WEST BANKING CORPORATI UB 1 1

17 EQUICOM SAVINGS BANK, INC. TB 1

18 FIRST CONSOLIDATED BANK KB 1 19 G-XCHANGE, INC. NB 1

20 HK AND SHANGHAI BANKING COR UB 1 21 INDUSTRIAL BANK OF KOREA KB 22 JPMORGAN CHASE BANK KB 1 23 KEB HANA BANK KB 1 24 LAND BANK OF THE PHILIPPINE UB 1 1

25 MALAYAN BANK SAVINGS AND MORTGAGE BANK, INC. TB 1

26 MAYBANK PHILS., INC. KB 1 1

27 MEGA INTL COMML BANK CO. LT KB 1 28 METROPOLITAN BANK AND TRUST UB 1 1

29 MITSUBISHI UFJ Financial Group KB 1 30 MIZUHO BANK, LTD. UB 1 31 OMNIPAY, INC. NB 1

32 PARTNER RURAL BANK (COTABATO), INC. RB 1

33 PAYMAYA PHILIPPINES, INC. NB 1


34 PHIL. BANK OF COMMUNICATION KB 1 1

35 PHILIPPINE NATIONAL BANK UB 1 1

36 PHILIPPINE SAVINGS BANK TB 1 1

37 PHILIPPINE TRUST COMPANY UB 1 1

38 PHILIPPINE VETERANS BANK KB 1 39 RIZAL COMMERCIAL BANKING CO UB 1 1

40 RCBC SAVINGS BANK. INC. TB 1

41 ROBINSONS BANK CORPORATION KB 1 1

42 SECURITY BANK CORPORATION UB 1 1

43 SHINHAN BANK KB 1 44 STERLING BANK OF ASIA, INC. TB 1 1

45 SUMITOMO MITSUI BANKING COR KB 1 46 SUN SAVINGS BANK, INC. TB 1

47 THE STANDARD CHARTERED BANK UB 1 48 UNION BANK OF THE PHILIPPIN UB 1 1

49 UNITED COCONUT PLANTERS BAN UB 1 1

50 UNITED OVERSEAS BANK PHILS. KB 1 51 YUANTA SAVINGS BANK TB 1 1

U.S. Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20523

Tel: (202) 712-000

Documents

USAID/E-PESO ACTIVITY 4 Annual Report