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Lawrence Agcaoili (The Philippine Star) – May 11, 2020 – 12:00 a.m.
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) saw a sharp drop in ATM transactions as more Filipinos embraced online and digital transactions amid expanded community quarantine to curb the spread of coronavirus disease 2019 or COVID-19.
Vicente de Villa III, managing director of the BSP’s financial technology subsector (FTSS), said there has been a sharp decline in the use of ATMs since the start of the improved community quarantine in Luzon.
De Villa said the number of ATM transactions fell by 25 percent, which translated into a 30 percent drop in value during closing.
The central bank has urged banks and other financial institutions to promote digital channels and even waive transaction fees for fund transfers through PESONet and InstaPay.
“If we go ahead and encourage banks to promote digital forms of transactions, the market will really correct theirs, and these ATM fees are likely to decrease when digital payments increase,” de Villa said.
The BSP, through Memorandum 661 issued in April 2018, approved the lifting of the moratorium on ATM fees ranging from P11 to P15 per transaction. However, the BSP, through Memorandum 2019-020, reminded banks to adhere to reasonable and market-based pricing principles in setting their ATM fees.
BSP Governor Benjamin Diokno said that half or 50 percent of payment transactions would go from cash or checks to digital payments by 2023, especially with the increase in the use of InstaPay and PESONet during quarantine.
“We see that the use of digital payments is gaining momentum in the post-coronavirus environment as more financial institutions embrace digital transformation to provide more efficient and secure services, while consumers and institutions, including the government, continue to improve access. to digital payment facilities, “Diokno said.
The data showed that InstaPay and PESONet volume and value increased 18 percent in April from March against average growth of 6 percent for volume and 5 percent for value in the first quarter.
“I see this trend continuing until the enhanced community quarantine is lifted, perhaps even further, as long as the risk of COVID-19 persists. It will be the new normal, ”said Abraham Co, President of Philippine Payments Management Inc.
BancNet CEO Aristeo Zafra said InstaPay transactions are secure.
“You can check and verify the details before confirming your transaction. Your bank or electronic wallet will send you a unique code to authenticate your identification before finalizing your transaction, after which it will immediately inform you that your money transfer was successful, ”added Zafra.
Lito Villanueva, director of digital innovation and inclusion at Rizal Commercial Banking Corp., led by Yuchengco, said the bank reserved an 821 percent jump in online and mobile facilities during the quarantine.
RCBC’s InstaPay transfers also showed a marked increase, increasing 357 percent in the first four months and 183 percent during the quarantine period.
“We predict that this aggressive increase in new accounts and the value and volume of transactions will persist during the COVID-19 crisis and beyond as more users enjoy the benefits of our digital services,” said Villanueva.
Data from the Better Than Cash Alliance (BTCA) showed that the share of electronic payments has increased to 20 percent in 2018 from eight percent in 2013 in value terms and to 10 percent from one percent in terms of volume, particularly with the launch of the National Retail Payment System (NRPS) by the BSP in December 2015.
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