Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
EXPLANATORY NOTE
With the current progress of technology, it is inevitable that there will be
a surge of contactless electronic transactions in the financial market. In
addition,
the
threat
of
COVID-19
has
made
it
necessary
for
several
establishments to adopt electronic transactions in payment and delivery since
it reduces the risk of transmission of the virus. At the same time, this process
highlights the government’s focus to help ease doing business in the Country.
In a study1 conducted by Visa Philippines, it was shown that seven (7)
out of ten (10) Filipinos are “already using contactless payment methods more
often than they did two years ago. Three (3) out of four (4) Filipinos have
experienced
going
cashless
ang relied mainly on electronic transactions.
E-commerce has also taken over twenty-five percent (25%) of all transactions in
the country, fifty percent (50%) of which are cashless. Only one (1) out of three
(3) are done by cash-on-delivery. Filipinos mostly use cashless payments when
paying for utilities, and forty-nine percent (49%) of those surveyed preferred
using cashless transactions for their grocery shopping and forty-five (45%)
preferred the same for fast food. In addition, cashless transactions have
contributed a lot to the ease of doing business, and in giving the consumers
options in the means and methods of spending their money.
With the inevitability that comes with this development is the need to
pass legislation to keep up with the times and ensure that Philippine society is
fully equipped to support electronic transactions. Safeguards must be put in
place in order to protect our populace from the risks involved, and guidelines
must be set so that this technology may be further maximized. It is with this
legislation that public health guidelines on COVID-19 may also be maintained
by minimizing contact between people involved in the transaction. With this
policy,
the
government
will
actually
be
hitting
two
birds
with
one
1 https://business.inquirer.net/296510/visa-philippines-study-shows-filipinos-are-ready-to-go-cashless
July 29, 2022
1:04 pm
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stone—ensuring minimal contact in light of the pandemic and making proper
preparation and adaptation with the evolution of technology and convenience.
It is for the foregoing premises that the approval of this Bill is earnestly
sought.
ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
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 as the “e-Money Act of 2022.”
SECTION 2. Declaration of Policy. – It is hereby declared as a policy of the State
to recognize the vital role of communication and information in nation-building. The
State also recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments. With this, the State
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
systems
for
financial
transactions
and
to
strengthen financial inclusion.
SECTION 3. Objective. – This Act aims to speed up and facilitate a more
efficient mode of transactions, arrangements, or exchanges of goods and services by
promoting the enhanced and strengthened use of e-money as a medium of exchange
and legal tender in financial transactions of the government and the general public.
SECTION 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);
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(b) “Consumer” refers to a natural or juridical person who is a purchaser, lessee,
recipient,
or
prospective
purchaser,
lessor,
or
recipient
of
consumer
products, services, credit, technology, advertising, or promotion, and other
items in eCommerce;
(c) “Electronic commerce” or “e-Commerce” refers to the production, distribution,
marketing, sale, or delivery of goods and services by electronic means;
(d) “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
device; (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) withdrawable in case or cash
equivalent; and (5) issued in accordance with relevant Bangko Sentral ng
Pilipinas (BSP) regulations;
(e) “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;
(f) “Merchant” refers to a person or entity engaged in buying and selling
merchandise at a fixed place of business;
(g) “Online merchant” refers to any natural or juridical person, irrespective of
whether privately or publicly owned, that directly sells, manufactures goods,
or offers for sale, any goods and services, in the ordinary course of business
over the internet, through a website, an online marketplace, a social media
website, or application, or through other similar means;
(h) “Online e-Commerce Platform” refers to a natural or juridical person that
solicits the purchase of digital products through digital platforms and
marketplaces whose business is to connect online buyers and online sellers,
facilitating sales of products, goods, or services through the internet with
the presence and use of monetary transaction;
(i) “Payment system” refers to the set of payment instruments, processes,
procedures, and participants that ensure the circulation of money or
movement of funds.
SECTION 5. Scope and Coverage. – This Act applies to the sale or exchange of
goods, products and services, whether physical or digital, including, but not limited to:
(a) Retail of consumer goods;
(b) Travel services, covering the purchase of flights, hotel accommodations, and
vacation rental spaces;
(c) Digital media providers, including advertising, gaming, music subscription,
and video on demand;


(d) Ride
hailing
services
for
personal
transport,
delivery
of
food
and
merchandise; and
(e) Financial services offered through both physical and online platforms, such
as payments, remittances, lending, investment, and insurance services.
SECTION 6. 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 and strengthen the use of 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, among others. For
this purpose, the NGAs, GOCCs, and LGUs are hereby authorized and highly
encouraged to partner with any duly authorized e-money issuer (EMI) to enable them
to facilitate cashless electronic transactions.
To ensure the efficient, sustainable, and continued use of the e-money payment
system, NGAs, GOCCs, and LGUs are mandated to create their respective e-money
technical support and maintenance service. The support service shall be responsible
for all technical troubleshooting and maintenance, in 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 arrangement.
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 Interior and Local Government (DILG) may be engaged by agencies to service their
e-money transactions.
The Congress shall jointly, as House of Representatives and the Senate, 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. Insofar as these
factors may vary depending on the area of service, the accreditation of EMIs may be
grouped by region or such other geographical consideration as the Congress may
consider appropriate and sustainable. The Congress 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 regularly as the concerned agencies may deem necessary.
SECTION 7. E-Money Capability of Merchants . – LGUs shall, by ordinance,
require merchants within their jurisdiction to obtain and maintain an e-money
payment system capability in carrying on their businesses as a prerequisite for the
approval or renewal of their business permits. No new or renewal of business permit
shall be approved unless the merchant concerned shows 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 the necessary assistance and support to the merchants
within their jurisdiction to facilitate their adoption of e-money transaction capability.
SECTION 8. Promotion of e-Money Transactions. –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 an efficient e-money payment system.
SECTION 9. Security Provisions. – All concerned agencies will hereby establish
the necessary security features and guidelines as may be needed to prevent phishing
and digital fraud. The right to privacy of the consumer shall be of utmost importance.
The LGAs, GOCCs, and LGUs shall periodically report to the DICT as regards
their compliance to the required security features and those added security features
that they have adopted over time. In addition, the compliance of merchants under the
jurisdiction of a specific LGU shall also be the subject of this report, and will be
included in the periodical report of the LGU to the DICT.
SECTION 10. Digital Payments. – The merchants and EMIs shall issue paper or
electronic invoices or receipts for all sales. An electronic invoice or receipt shall have
the same legal effect as a physical invoice or receipt.
Within sixty (60) days from the effectivity of this Act, the Bureau of Internal
Revenue
shall,
in coordination with the Bureau of Customs, issue rules and
regulations that modernize and streamline the regulatory framework and encourage
the adoption of electronic payment systems by the citizenry. The Department of Trade
and Industry and the Bangko Sentral ng Pilipinas shall also develop guidelines to
protect merchants and consumers covering the various digital payment solutions.
SECTION 11. 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.
SECTION 12. 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.
SECTION 13. 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.


SECTION 14. Repealing Clause. – All laws, executive orders, presidential
decrees
or
issuances,
letters
of
instruction,
administrative
orders,
rules,
and
regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.
SECTION 15. Effectivity Clause. – This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation.
Approved,