Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
2
2 to 3 sentences
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.
2
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
USAID/E-PESO 4th Annual Report 4 4
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
USAID/E-PESO 4th Annual Report 5 5
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
USAID/E-PESO 4th Annual Report 6 6
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.
USAID/E-PESO 4th Annual Report 7 7
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 4th Annual Report 8 8
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.
USAID/E-PESO 4th Annual Report 9 9
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
USAID/E-PESO 4th Annual Report 10 10
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.
USAID/E-PESO 4th Annual Report 11 11
Figure 2: BTMS E-Learning Landing Page
Figure 3: Sample Content—Basic Solution Functionalities
USAID/E-PESO 4th Annual Report 12 12
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
USAID/E-PESO 4th Annual Report 13 13
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
USAID/E-PESO 4th Annual Report 14 14
(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
USAID/E-PESO 4th Annual Report 15 15
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)
Financial Institutions and
their Corporate and Retail
Customers
USAID/E-PESO 4th Annual Report 16 16
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)
Financial Institutions and
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
USAID/E-PESO 4th Annual Report 17 17
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)
USAID/E-PESO 4th Annual Report 18 18
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
USAID/E-PESO 4th Annual Report 19 19
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
USAID/E-PESO 4th Annual Report 20 20
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.
USAID/E-PESO 4th Annual Report 21 21
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
USAID/E-PESO 4th Annual Report 22 22
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
USAID/E-PESO 4th Annual Report 23 23
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.
USAID/E-PESO 4th Annual Report 24 24
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
USAID/E-PESO 4th Annual Report 25 25
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.
USAID/E-PESO 4th Annual Report 26 26
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)
USAID/E-PESO 4th Annual Report 27 27
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
USAID/E-PESO 4th Annual Report 28 28
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
USAID/E-PESO 4th Annual Report 29 29
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%)
USAID/E-PESO 4th Annual Report 30 30
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
USAID/E-PESO 4th Annual Report 31 31
• 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
USAID/E-PESO 4th Annual Report 32 32
• Security of ATM and Online / Mobile Banking Environment and Other Emerging Channels
• Basic Concepts on Payment Card Industry Data Security Standard (PCI-DSS)
USAID/E-PESO 4th Annual Report 33 33
• 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:
USAID/E-PESO 4th Annual Report 34 34
• 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
USAID/E-PESO 4th Annual Report 35 35
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
USAID/E-PESO 4th Annual Report 36 36
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
USAID/E-PESO 4th Annual Report 37 37
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.
USAID/E-PESO 4th Annual Report 38 38
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/
USAID/E-PESO 4th Annual Report 39 39
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.
USAID/E-PESO 4th Annual Report 40 40
Table 9: Awareness / Past 12 months Usage of Instruments ((Institutional Payments Baseline Study)
Figures in % Micro Small Medium Large GOCC
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)
Figures in % Micro Small Medium Large GOCC
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.
USAID/E-PESO 4th Annual Report 41 41
Table 11: Benefit Blocks to Solutions by Business Type (Institutional Payments Baseline Study)
Figures in % Micro Small Medium Large GOCC
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.
USAID/E-PESO 4th Annual Report 42 42
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.
USAID/E-PESO 4th Annual Report 43 43
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.
SUB-PURPOSE 2: INFRASTRUCTURE FOR E-PAYMENTS EXPANDED
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.
SUB-PURPOSE 3: ENABLING ENVIRONMENT FOR E-PAYMENTS
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.
USAID/E-PESO 4th Annual Report 44 44
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.
USAID/E-PESO 4th Annual Report 45 45
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,
USAID/E-PESO 4th Annual Report 46 46
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 (%)
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.
USAID/E-PESO 4th Annual Report 47 47
SUB-PURPOSE 1: RAPID ADOPTION OF E-PAYMENTS IN FINANCIAL SYSTEM
Table 14: Targets and Indicators for Sub-Purpose 1 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
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,
USAID/E-PESO 4th Annual Report 48 48
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
(%)
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.
USAID/E-PESO 4th Annual Report 49 49
SUB-PURPOSE 2: INFRASTRUCTURE FOR E-PAYMENTS EXPANDED
Table 15: Targets and Indicators for Sub-Purpose 2 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
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
USAID/E-PESO 4th Annual Report 50 50
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.
SUB-PURPOSE 3: ENABLING ENVIRONMENT FOR E-PAYMENTS
IMPROVED
Table 16: Targets and Indicators for Sub-Purpose 3 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 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%
USAID/E-PESO 4th Annual Report 51 51
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 (%)
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%
USAID/E-PESO 4th Annual Report 52 52
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 (%)
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,
USAID/E-PESO 4th Annual Report 53 53
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.
SUB-PURPOSE 4 (CROSS-CUTTING): GAPS IN BROADER E-PAYMENT ECOSYSTEM ADDRESSED
Table 17: Targets and Indicators for Sub-Purpose 4 as of Year 4 Quarter 4
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% --- ---
USAID/E-PESO 4th Annual Report 54 54
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
USAID/E-PESO 4th Annual Report 55 55
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
USAID/E-PESO 4th Annual Report 56 56
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.
USAID/E-PESO 4th Annual Report 57 57
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.
USAID/E-PESO 4th Annual Report 58 58
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.
SUB-PURPOSE 3: ENABLING ENVIRONMENT FOR E-PAYMENTS
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
USAID/E-PESO 4th Annual Report 59 59
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.
SUB-PURPOSE 4 (CROSS-CUTTING): GAPS IN BROADER E-PAYMENT ECOSYSTEM ADDRESSED
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
SUB-PURPOSE 1: RAPID ADOPTION OF E-PAYMENTS IN FINANCIAL SYSTEM
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
USAID/E-PESO 4th Annual Report 60 60
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.
USAID/E-PESO 4th Annual Report 61 61
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.
SUB-PURPOSE 3: ENABLING ENVIRONMENT FOR E-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
USAID/E-PESO 4th Annual Report 62 62
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/
Businesses to benefit from PESONet
Manila Bulletin - July 6, 2018 (Print and Online)
https://technology.mb.com.ph/2018/07/06/businesses-to-benefit-from-pesonet/
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/
Businesses to benefit from PESONet
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
Gov't support shift to digital payments
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
USAID/E-PESO 4th Annual Report 64
Low cost fund transfers with PESONet
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
Lazada PH bullish on 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
USAID/E-PESO 4th Annual Report 65
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)
- (no entries for this quarter)
Year 4 Quarter 4 (September – November 2018)
- (no entries for this quarter)
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
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- Cagayan de Oro City
- Pulilan, Bulacan
- Zamboanga City
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- Batangas City
- Quezon City
Year 2 Quarter 4 (July 1 – Sept 30, 2016)
- Valenzuela City
Year 3 Quarter 3 (Apr 1 – June 30, 2017)
- Iloilo City
USAID/E-PESO 4th Annual Report 66
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
Year 4 Quarter 2 (Jan – March 2018)
- (no entries for this quarter)
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
Year 4 Quarter 4 (September – November 2018)
- 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
Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)
- 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)
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
− Taxumo integrated e-payments to their tax-filing software
Year 4 Quarter 2 (Jan – March 2018))
− No additional businesses on boarded for the Quarter
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
Year 4 Quarter 4 (September – November 2018)
- (no entries for this 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
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- 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)
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- FICCO Training, 3/19/16 to 3/20/16 (2,455 of males, 6,421 females; 8,876 trained)
USAID/E-PESO 4th Annual Report 67
Year 3 Quarter 2 (Jan 1 – Mar 31, 2017)
- 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)
Year 4 Quarter 2 (Jan – March 2018)
− No additional end-users/clients trained for the Quarter
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter) Year 4 Quarter 4 (September – November 2018)
- (no entries for this quarter)
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
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- Cagayan de Oro City
- Puerto Princesa City
- Pulilan (Bulacan)
- Zamboanga City
- Cagayan de Oro Electric Power and Light Company (CEPALCO)
- Cagayan de Oro Water District (COWD)
- Palawan Electric Cooperative (PALECO)
- Puerto Princesa Water District (PPWD)
- Zamboanga City Water District (ZCWD)
- Auto Top-Up Ventures Inc. (ATVI)
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- Batangas City
- Quezon City
Year 2 Quarter 3 (Apr 1 – Jun 30, 2016)
- OmniPay
- Mynt
Year 2 Quarter 4 (July 1 – Sept 30, 2016)
- Valenzuela City
- BIR
- Mindanao University of Science & Technology (MUST)
- University of the Visayas (UV)
USAID/E-PESO 4th Annual Report 68
Year 3 Quarter 1 (October 1 – December 31, 2016)
- PayMaya
Year 3 Quarter 3 (April 1 – June 30, 2017)
- Tagbilaran City
- Iloilo City
Year 4 Quarter 4 (September – November 2018)
- 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
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- Cagayan de Oro City
- Puerto Princesa City
- Pulilan (Bulacan)
- Zamboanga City
- Cagayan de Oro Electric Power and Light Company (CEPALCO)
- Cagayan de Oro Water District (COWD)
USAID/E-PESO 4th Annual Report 69
- Palawan Electric Cooperative (PALECO)
- Puerto Princesa Water District (PPWD)
- Zamboanga City Water District (ZCWD)
- Auto Top-Up Ventures Inc. (ATVI)
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- Batangas City
- Quezon City
Year 2 Quarter 4 (July 1 – Sept 30, 2016)
- BIR
- Mindanao University of Science & Technology (MUST)
- University of the Visayas (UV)
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
- 33 banks and non-bank EMIs on-boarded and supported through PPMI
Year 4 Quarter 2 (Jan – March 2018)
- (no entries for this quarter)
Year 4 Quarter 3 (April - June 2018)
- (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
USAID/E-PESO 4th Annual Report 70
- 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
Year 2 Quarter 3 (Apr 1 – June 30, 2016)
- E-payments Landscape
Year 2 Quarter 4 (July 1 – Sept 30, 2016)
- Philippine Individual Payments Baseline Survey
- Philippine Agent Network Study
Year 4 Quarter 2 (Jan – March 2018)
- Gap analysis Report on the Assessment of Existing BSP Digital Security Policy Areas vis-à-vis
Recommended Leading Standards on Digital Security Policies
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
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
Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)
- 2016 National Expenditure Program, Section 76 (supports adoption and compliance to e-
payments in all government transactions)
USAID/E-PESO 4th Annual Report 71
- Puerto Princesa City Council Ordinance passed last December 2015
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- BIR Regulation 3-2016 issued last March 23, 2016
Year 2 Quarter 4 (Jul 1 – Sept 30, 2016)
- Joint Memorandum Circular 01-2016 issued last August 30, 2016
- Tagbilaran City Executive Order 23 Series of 2016 issued last Sept 21, 2016
Year 3 Quarter 1 (October 1 – December 31, 2016)
- Tagbilaran City Ordinance No. 21-16 issued November 3, 2016
Year 4 Quarter 1 (October 1 – December 31, 2017)
- 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
Year 1 Quarter 3 (Apr 1 – Jun 30, 2015)
- NATCCO General Assembly (May 23-24, 2015)
Year 1 Quarter 4 (Jul 1 – Sep 30, 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)
Year 2 Quarter 1 (Oct 1 – Dec 31, 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)
USAID/E-PESO 4th Annual Report 72
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- SURGE Stakeholder's Forum - Batangas City (January 19, 2016)
- SURGE Stakeholder’s Forum - Tagbilaran City (January 26-27, 2016)
Year 2 Quarter 3 (Apr 1 – Jun 30, 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)
Year 3 Quarter 1 (October 1 – December 31, 2016)
- 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)
Year 3 Quarter 3 (April 1 – June 30, 2017)
- Various NRPS Consultations with PSMB, BAP, RBAP, CDA, NATCCO, etc. (May and June
2017)
- Survey Design Workshop for e-Payments (June 9, 2017)
Year 4 Quarter 1 (Oct 1 – Dec 31, 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)
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
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
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- FICCO Training, 3/19/16 to 3/20/16 (2,455 of males, 6,421 females; 8,876 trained)
Year 3 Quarter 2 (Jan 1 – Mar 31, 2017)
- 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)
USAID/E-PESO 4th Annual Report 73
- Zamboanga City LGU Financial Literacy Orientation, 4/26/17 and 4/27/17 (68 males, 64
females, 132 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)
Year 4 Quarter 2 (Jan – March 2018)
- 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)
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
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
USAID/E-PESO 4th Annual Report 74
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
Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)
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
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
USAID/E-PESO 4th Annual Report 75
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
Year 2 Quarter 3 (Apr 1 – Jun 30, 2016)
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
Year 2 Quarter 4 (Jul 1 – Sep 30, 2016)
2016 International Conference on Development: Oca, 6 Others Banner CDO Delegation To
International Confab on Urban Development
USAID/E-PESO 4th Annual Report 76
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
USAID/E-PESO 4th Annual Report 77
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
Year 3 Quarter 3 (Apr 1 – June 30, 2017)
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
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
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
USAID/E-PESO 4th Annual Report 78
https://www.chemonics.com/e-payments-modeling-zero-hero/
Year 4 Quarter 2 (Jan – March 2018)
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/
Year 4 Quarter 3 (April - June 2018)
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
USAID/E-PESO 4th Annual Report 79
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
Manila Bulletin-14 Apr 2018
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
Manila Bulletin-1 Apr 2017
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)
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/
Businesses to benefit from PESONet
Manila Bulletin - July 6, 2018 (Print and Online)
USAID/E-PESO 4th Annual Report 80
https://technology.mb.com.ph/2018/07/06/businesses-to-benefit-from-pesonet/
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/
Businesses to benefit from PESONet
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
Gov't support shift to digital payments
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
Low cost fund transfers with PESONet
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
Lazada PH bullish on 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/
USAID/E-PESO 4th Annual Report 81
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
BlockTribune - 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/UzpfSTEwMDAwMj
I0MzU3MjQ1MjoxOTM4NzU5MjE2MjA4ODQ1/
b. No. of global knowledge-sharing events that highlight the Philippines e-payment
environment/players
Year 1 Quarter 4 (Jul 1 – Sep 30, 2015)
- Cards & Payments Philippines 2015, Manila, Philippines (September 2-3, 2015)
- G-20 Responsible Finance Forum, Istanbul, Turkey (September 2015)
Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)
- Mondato Summit Asia, Manila, Philippines (October 20-22, 2015)
- Financial Times - Citibank Asia Pacific Financial Inclusion Summit, Manila, Philippines
(October 26-29, 2015)
Year 2 Quarter 3 (Apr 1 – Jun 30, 2016)
- Innovative Strategies for Development Summit 2016, Crowne Plaza Hotel, Ortigas Center,
Pasig City (June 8-10, 2016)
Year 2 Quarter 4 (Jul 1 – Sep 30, 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)
Year 3 Quarter 3 (Apr 1 – June 30, 2017)
- Seamless Payments Asia, Singapore (April 19-20, 2017)
Year 3 Quarter 4 (Jul 1 – Sep 30, 2017)
USAID/E-PESO 4th Annual Report 82
- Seamless Payments Philippines, SMX Mall of Asia, Pasay City (September 27-28, 2017)
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
- Evaluation 2017, American Evaluation Association, Washington Marriot Hotel, Washington
DC, USA (November 8-11, 2017)
Year 4 Quarter 2 (Jan – March 2018)
- (no entries for this quarter)
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
2.2.3 Local Government and Decentralization
2.2.3-5 Number of sub-national entities receiving USG assistance that improve their performance
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- Cagayan de Oro City
- Pulilan, Bulacan
- Zamboanga City
Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)
- Batangas City
- Quezon City
Year 2 Quarter 4 (July 1 – Sept 30, 2016)
- Valenzuela City
Year 3 Quarter 3 (April 1 – June 30, 2017)
- Tagbilaran City
- Iloilo City
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)
- (no entries for this quarter)
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)
Year 1 Quarter 4 (July 1 – Sept 30, 2015)
- Cagayan de Oro City
- Pulilan, Bulacan
- Zamboanga City
- Department of Social Welfare and Development (DSWD)
Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)
USAID/E-PESO 4th Annual Report 83
- 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 2 (Jan 1 – Mar 31, 2016)
- Batangas City
- Quezon City
Year 2 Quarter 3 (Apr 1 – June 30, 2016)
- Bureau of Internal Revenue (BIR)
Year 2 Quarter 4 (Jul 1 – Sept 30, 2016)
- Valenzuela City
- University of the Visayas (UV)
Year 3 Quarter 3 (April 1 – June 30, 2017)
- Tagbilaran City
- Puerto Princesa City
- Iloilo City
Year 4 Quarter 1 (Oct 1 – Dec 31, 2017)
- Philippine Payments Management Inc. (PPMI)
- Rameses
Year 4 Quarter 2 (Jan – March 2018)
- (no entries for this quarter)
Year 4 Quarter 3 (April - June 2018)
- (no entries for this quarter)
EG.4.2-2 Number of financial intermediaries serving poor households and
microenterprises supported by USG assistance
Year 3 Quarter 1 (October 1 – December 31, 2016)
- Land Bank of the Philippines
USAID/E-PESO 4th Annual Report 84
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%
USAID/E-PESO 4th Annual Report 85
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
USAID/E-PESO 4th Annual Report 86
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
USAID/E-PESO 4th Annual Report 87
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