The Philippine banking industry is set to welcome two players, Apple Pay and Google Pay, who express keen interest in entering the local market to drive digital payment adoption in the country further.
In an interview with reporters late Monday, December 2, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto Tangonan confirmed that both tech giants have been in discussions with the central bank regarding their potential operations in the country.
“We had a discussion on their activities and then it was clear to us that they are — when you touch the payment system, you are an operator of payment systems,” Tangonan said.
To operate in the Philippines, these companies will need to register with the BSP as operators of payment systems (OPS).
This regulatory requirement ensures that they comply with the country’s financial regulations.
Apple Pay and Google Pay let users conduct financial transactions using near-field communication (NFC) technology, allowing them to tap their smartphones or smartwatches to make payments via linked debit or credit cards and e-money accounts.
“From their responses to us, the way they explained, it’s clear to us that they touch the payment system. They perform something, so they are considered operators,” Tangonan said.
While neither company has formally applied yet, Tangonan clarified that the process is straightforward and typically takes about a month. Once registered, they can begin offering their services to Filipino consumers.
When asked about potential hurdles, Tangonan emphasized that the only requirement is BSP registration. Once this is completed, Apple Pay and Google Pay can proceed with their Philippine launch.
Data from the BSP showed that digital payments made up 52.8% of retail payment transactions in 2023, surpassing its 50% target under the Digital Payments Transformation Roadmap 2018-2023, and up from 42.1% the previous year. (TCSP)
