Apple Pay, Google Pay Eyeing Launch in the Philippines

Apple Pay and Google Pay are exploring the possibility of launching in the Philippines but must first secure registration with the Bangko Sentral ng Pilipinas (BSP) as operators of payment systems (OPS), according to a top official.

BSP Deputy Governor Mamerto Tangonan shared that meetings have been held between the central bank and representatives from both Apple Pay and Google Pay, which are still not available in the Philippines. “They‘re exploring, and we’ve had discussions about their activities. Its clear that when you touch the payment system, you are an operator of payment systems,” he explained in an interview with reporters.

As per the BSPs regulations, any entity providing clearing or settlement services in a payment system must register with the bank. This includes defining, controlling, or maintaining the operational framework for such systems. This requirement is outlined in the National Payments Systems Act (NPSA).

To date, Tangonan noted that Apple Pay and Google Pay have not yet filed applications for registration with the BSP. Once registered, the services can be made available to the public, but the process may take a month.

Both Apple Pay and Google Pay allow users to make financial transactions through near-field communication (NFC) devices, enabling payments via smartphones or smartwatches linked to debit or credit cards and e-money accounts.

Tangonan clarified, “We don‘t license them. We just require registration. Once they’re registered, they can provide the service.” However, he noted that it was unclear why the service providers had not yet filed their applications. “Maybe they are already in the process,” he speculated.

The BSP also reported that digital payments accounted for 52.8% of retail payment transactions in 2023, surpassing their 50% target under the Digital Payments Transformation Roadmap 2018-2023, up from 42.1% in 2022.

Final Thoughts

The entry of Apple Pay and Google Pay into the Philippine market will likely provide a significant boost to digital payment adoption in the country. However, their success depends on completing the necessary regulatory requirements with the BSP. The next few months could be pivotal in determining how soon Filipino consumers will gain access to these global payment giants.