Nestor A Espenilla, Jr: In real time
Speech by Mr Nestor A Espenilla, Jr, Governor of Bangko Sentral ng Pilipinas (BSP, the central
bank of the Philippines), at InstaPay Go Live, Manila, 23 April 2018.
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On behalf of the Bangko Sentral ng Pilipinas, I welcome everyone to this important event, another
significant milestone in our shared goal of having a safer, more efficient, affordable and reliable
payments system.
Today, the country launches another priority Automated Clearing House (ACH) under the National
Retail Payment System (NRPS).
We call it, "InstaPay."
Like the PESONet launched in November of last year, InstaPay is innovative. It is likewise
expected to create new markets and add new value. Its launch and operation further improves
the Philippine retail payment system and moves us closer to creating a cash-lite economy. Our
vision, to create an inter-operable payment ecosystem, allowing seamless electronic fund
transfers and payments from one account to another, is not only being articulated. It is becoming
REAL now. In real time.
InstaPay's name fully represents what this newest ACH achieves - real time
account-toaccount payments or transfers of funds. Instant payments.
The interoperability of InstaPay allows users to enjoy seamless transactions between accounts
maintained in any of the participating institutions both bank and non-bank. Beneficiaries are
assured of immediately receiving transaction amounts in full.... no deductions.
Consumers need not leave their homes or places of work to withdraw cash and make
over-thecounter payments for bills. Conveniently available on electronic delivery channels through mobile
apps and internet banking facilities provided by participating banks and e-money issuers, on a 24
hour basis, 365 days a year, payments via Instapay can be made anytime. Payments can be
made even after banking hours, on weekends or holidays. With InstaPay, electronic payments
can also be made to the government for taxes, licenses, and other fees in real time.
Catering to low value payments, InstaPay safely and quickly moves funds. It produces efficiency
in terms of cost and resources. Reduced cash usage will allow banks and the government to
minimize security, transport, overhead, and other incidental costs that come with cash handling.
With InstaPay, we see greater empowerment of both the public and private sectors. Greater
efficiencies of electronic payment channels will also bring about an accelerated velocity of
payments, increasing economic activities.
We see a rise in public confidence in making electronic payments - this can, and will result in
positive culture change! As more and more consumers gain confidence in making electronic
payments, we look forward to the market expanding with more innovations.
Participating financial institutions are granted greater opportunities to diversify and widen the
products and services they offer. Innovation in financial services delivery will thrive. With a more
efficient retail payments infrastructure, various services will emerge as the needs of financial
consumers evolve and become more sophisticated.
We anticipate the emergence of a new competitive space where service innovation is
encouraged. New business models, technologies, industry wide collaborations and partnerships
will be developed. With the implementation of NRPS and the launch of new ACHs such as
InstaPay, financial institutions will be challenged to develop innovative business models
customized to their target markets' needs, to ensure client loyalty, and to better compete for
market share.
Our efforts in implementing the NRPS are rapidly providing individuals, businesses and
government, additional options on how to complete payments, collections or disbursements,
depending on their specific needs and the characteristics of the fund transfers or payments.
Right now as we launch InstaPay, we have seven (7) pioneer BSP-Supervised Financial
Institutions capable of sending and receiving payments. In addition, another thirteen (13) are able
to receive payments. By the middle of this year - in a few months - we expect more financial
institutions to participate in InstaPay. In parallel, the BSP is engaging the private sector and the
government to encourage their adoption of InstaPay and PESONet to meet their payment system
requirements. We now have critical mass. It is only a matter of time before we attain
widespread usage.
Ladies and gentlemen, the digital transformation of financial services is happening now! The
country's financial services industry needs to evolve to remain competitive and relevant.
The steps we have taken to implement the NRPS - the launch of PESONet and now, InstaPay,
would not have been possible without constant and close dialogue and collaboration with you, our
partners in the industry and with the Philippine Payments Management Inc. (PPMI), an
industryled self-governing body and an important ally in pursuing NRPS goals. Our collaboration and
cooperation is real, authentic and has produced real results.
Working together, I am sure that the PPMI and the BSP can, and will continue to foster
economic growth though the promotion of electronic payments. We shall continue to work
together in establishing a safe, efficient, and reliable retail payment system to make our
country more competitive in this Digital Age.
Congratulations everyone on the launching of InstaPay.
Maraming Salamat! Mabuhay tayong lahat!