TODAY’S TECH

The Bangko Sentral ng Pilipinas (BSP) has paved the way for the potential launch of Apple Pay and Google Pay in the Philippines by determining that the two tech giants do not need to register as operators of a payment system (OPS). This decision, a reversal from previous statements, stems from the finding that the companies will not hold funds for Filipino users.

According to BSP Deputy Governor Mamerto Tangonan, the central bank’s discussions with Apple and Google clarified that their services function solely as technology service providers. This means they won’t manage digital wallets or directly handle money in the country, a key distinction that removes the need for BSP registration.

“We deemed them not to be an OPS because their activity is not an OPS activity,” Tangonan stated in an interview. He further explained that since the money will not pass through them, they will not hold funds or have contracts with local merchants. In other countries where these services have a wallet-like function, they would be considered an OPS, but that won’t be the case in the Philippines.

Both Apple Pay and Google Pay enable users to make contactless payments by tapping their smartphones or smartwatches on a terminal. The services link to existing debit, credit, or e-money accounts, allowing for seamless transactions without the physical card. The responsibility for evaluating the security and reliability of these services now falls on the local financial institutions that partner with them.

The BSP’s decision comes as the Philippines continues to see a rapid rise in digital payments. In 2024, digital transactions made up 57.4% of the total volume of retail transactions, surpassing the central bank’s target. BSP Governor Eli Remolona Jr. noted that these figures reflect “the continued shift toward digital channels and the growing trust of Filipinos in using digital financial services.”