Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___________ 
Introduced by Representative Ma. Rene Ann Lourdes G. Matibag 
AN ACT PROMOTING THE ADOPTION OF ELECTRONIC MONEY AS A MEDIUM 
OF EXCHANGE FOR FINANCIAL TRANSACTIONS OF THE GOVERNMENT AND 
ALL MERCHANTS AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
In 2018, the Bangko Sentral ng Pilipinas (BSP) reported that cash still accounted for 
99% of local transactions. From January to September 2019, digital payments surged by 33 
percent. While still far from the target of 20 percent electronic payments by 2020, the 
significant increase in volume of electronic money transactions holds promise. One of the 
perceived hindrances, however, is the shortage of facilities and resources that can 
acknowledge cashless payments. 
As part of our move to transition into the “new normal” in the midst of the current 
global pandemic, electronic payments of essential goods and services is a crucial element in 
flattening the COVID-19 curve since handling of cash itself is a potential transmitter of the 
virus.  Furthermore, electronic money transactions will no longer require the ordinary 
Filipino, especially the elderly who are classified as high-risk, to leave the safety of their homes 
to buy goods, pay utility bills, remit money, or address other household needs, which may all 
be done online. Similarly, the Philippine government may use electronic payment channels to 
transfer cash subsidies to the targeted beneficiaries of its social amelioration program, 
minimizing mass gatherings and long lines at disbursement centers.  
This bill seeks to provide an enabling environment to accelerate the adoption of 
electronic money as one of the mediums of exchanges across the country. Switching to digital 
and cashless payments helps in flattening the COVID-19 curve, as well as brings convenience, 
ensures transparency and safety, saves time, and offers speedy value transfers. The use of 
electronic money also affords more efficient service delivery and at the same time entails 
lower operating costs. It likewise increases financial inclusion to support broad-based 
economic development that can contribute to inclusive growth in the country. 
MA. RENE ANN LOURDES G. MATIBAG 
July 21, 2022
4:28 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___________ 
Introduced by Representative Ma. Rene Ann Lourdes G. Matibag 
AN ACT PROMOTING THE ADOPTION OF ELECTRONIC MONEY AS A MEDIUM 
OF EXCHANGE FOR FINANCIAL TRANSACTIONS OF THE GOVERNMENT AND 
ALL MERCHANTS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1.  Short Title. – This Act shall be known and cited as the “Use of Electronic Money 
Act of 2022.” 
SEC.  2.  Declaration  of  Policy  –  The  State  recognizes  the  vital  role  of information 
and  communications  technology  in  nation-building.  The  State  also recognizes the need of 
promoting ease of doing business and efficient delivery of goods and services to the general 
public. Towards this end, the State shall promote the use of electronic money or e-money as a 
medium of exchange to optimize the use of technology and innovative payment system for 
financial transactions and to strengthen financial inclusion. 
SEC. 3. Objective. – This Act aims to facilitate transactions, arrangements, or exchanges or 
goods and services by promoting the universal use of e-money as a medium of exchange in 
financial 
transactions 
of 
the 
government 
and 
the 
general 
public. 
SEC. 4. Definition of Terms. – As used in this Act, the following terms shall mean: 
(a) “Access  device”  refers  to  any  card,  plate,  code,  account  number, electronic serial
number, personal identification number, or other telecommunications service, equipment or
instrumental identifier, or other means of account access that can be used to obtain money,
goods, services, or any other thing of value or to initiate a transfer of funds (other than a
transfer originated solely by paper instrument);
(b) “Electronic  money”  or  “e-money”  shall  refer  to  monetary  value  as represented  by  a
claim  on  its  issuer,  that  is  (1)  electronically  stored  in  an instrument or devise; (2) issued
against receipt of funds of an amount not lesser in value than the monetary value issued; (3)
accepted as a means of payment by persons  or  entities  other  than  the  issuer;  (4)
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withdrawable  in  case  or  cash equivalent; and (5) issued in accordance with relevant Bangko 
Sentral ng Pilipinas (BSP) regulations; 
 
(c) “Electronic money issuer” or “EMI” refers to any entity authorized by the BSP under 
Subsection X780.2  of  MORB  which  provides  money  transfer  or remittance services using 
electronic stored money value system and similar digital financial services; 
 
(d) “Merchant” refers to a person or entity engaged in buying and selling merchandise at a 
fixed place of business; and 
 
(e) “Payment system” refers to the set of payment instruments, processes, procedures and 
participants that ensures the circulation of money or movement of funds. 
 
SEC.  5. Use of E-Money. – All national government agencies (NGAs), government-owned 
and controlled corporations (GOCCs), and local government units  (LGUs)  are  hereby  
mandated  to  utilize  e-money  among  the  medium  of exchanges in the collection of taxes, 
fees, tolls, imposts and other revenues and in the payment of goods, services and other 
disbursements. For this purpose, they are hereby authorized to partner with any duly 
authorized e-money issuer (EMI) to enable them to process e-money transactions. 
 
To  ensure  seamless  and  continued  service  of  the  e-money  payment system, NGAs, 
GOCCs, and LGUs may create their respective e-money technical support and maintenance 
service. The support service shall be responsible for troubleshooting and in maintaining 
coordination with the EMI partner for technical and other concerns within the agency. The 
creation of the technical support and maintenance service shall be without prejudice to any 
technical support arrangement between the agency and the EMI partner pursuant to a contract 
or agreement. 
 
The  selection  of  an  EMI  partner  shall  not  be  subject  to  the  rules  of procurement 
prescribed under Republic Act No. 9184: Provided, That only EMIs duly authorized by the 
BSP and accredited by the Department of Budget and Management (DBM), Department of 
Information and Communications Technology (DICT) and Department of the Interior and 
Local Government (DILG) may be engaged by agencies to service their e-money transactions. 
 
The DBM, DICT, and DILG shall jointly accredit EMIs based on technical capability, financial 
resources, network coverage, adequacy of merchant partners, and such other factors as they 
may deem appropriate and decisive in determining the overall  capability  of  EMIs  to  provide  
the  service.  Recognizing  that  the adequacy, sufficiency, and quality of information 
technology infrastructure vary in different localities, the accreditation of EMIs may be 
grouped by region or such other  geographical  consideration  as  the  DBM,  DICT,  and  DILG  
consider appropriate and convenient. The DBM, DICT, and DILG shall promulgate the list of 
accredited EMIs simultaneous with the promulgation of the rules and regulations 
implementing  the  provisions  of  this  Act.  The  list  of  accredited  EMIs  may  be revised, 
supplemented, or reduced as the DBM, DICT, and DILG deem necessary. 
 
SEC. 6. E-Money Capability of Merchants. -  To accelerate the adoption of e-money as a 
medium of exchange, LGUs shall, by ordinance, require merchants within their localities to 


obtain and maintain e-money payment system capability in carrying on their businesses as a 
pre-requisite for the approval or renewal of their business permits. No new or renewal of 
business permit shall be approved unless the merchant concerned show to the satisfaction of 
the LGU that a functional e-money payment system accessible by mobile phone or other 
access devices is installed or provided by a duly registered EMI in the merchant partner’s 
place of business. 
 
The  LGUs  shall  extend  assistance  to  the  merchants  to  facilitate  their adoption of e-money 
transaction capability. 
 
SEC.  7.  Promotion  of  E-Money  Transactions.  –  Utilizing  e-money  in financial transactions 
provides clients with convenient, transparent, safe, expeditious, and efficient mode of 
transacting business. To optimize the benefits of this technological innovation, scale up 
financial inclusion, and promote sustainability, NGAs, GOCCs, and LGUs shall prioritize the 
use of e-money as the medium of exchange in their financial transactions. 
 
NGAs, GOCCs, and LGUs shall also explore the feasibility of prescribing discounted rates for 
selected financial transactions to encourage the availment of e-money payments. LGUs may, 
likewise, impose reduced fees or grant other incentives for merchants providing efficient e-
money payment system. 
 
SEC. 8. Appropriation. – The amount necessary for the implementation of the provisions of 
this Act shall be taken from the current year’s budgets of the NGAs, GOCCs, and LGUs. 
Thereafter, such sums as may be necessary for the continued implementation of the Act shall 
be incorporated in the annual General Appropriations Act, corporate operating budget, or 
appropriation ordinance, as the case may be. 
 
SEC. 9. Implementing Rules and Regulations. – The DBM, DICT, and DILG shall promulgate 
the rules and regulations implementing the provisions of this Act within ninety (90) days from 
its effectivity. 
 
SEC. 10. Separability Clause. – If for any reason, any part or provision of this Act is declared 
invalid or unconstitutional, the remaining parts or provisions not affected shall remain in full 
force and effect. 
 
SEC.  11.  Repealing Clause. – All laws, presidential decrees, executive orders, rules and 
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
 
SEC. 12. Effectivity – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of national circulation. 
 
Approved,