Payment services Google Wallet and Apple Pay are in talks with the Bangko Sentral ng Pilipinas (BSP) and are exploring entering the Philippine payments system through a possible Payment System Operator (PSO) registration.
What is the meaning: The entry of Google Wallet and Apple Pay into the Philippine market could provide digital wallet users with more payment options, greater convenience, and greater integration with global platforms.
Key details: The current talks between the Central Bank, Google and Apple are confirmed by BSP Deputy Governor Mamerto Tangonan.
- According to Tangonan, both Google Wallet and Apple Pay are exploring meeting regulatory requirements for OPS before entering the Philippine payment system.
Key quote:
“They are exploring and then we had a discussion about their activities. From their responses, it is clear to us that they touch on the payment system. When you touch the payment system, you are a payment system operator. That is why we consider them payment system operators. Therefore, they need to register.”
Mamerto Tangonan, Deputy Governor, Central Bank of the Philippines
Why OPS license? An OPS is an entity that manages platforms to process payments and fund transfers, such as payment gateways, digital wallets, or services that help merchants accept payments.
- The Birth: In 2021, the BSP issued a governance policy for Payment System Operators (PSOs) under the National Payment Systems Act (NPSA), establishing governance standards, qualifications and disqualifications of PSO directors and officers for guarantee safety, efficiency and stability. operation of the national payment system.
- The numbers: Currently there are 297 companies registered as OPS with the BSP.
- In the case of Google Wallet and Apple Pay, These payment services do not hold consumer funds directly and will not require additional registration beyond OPS.
- The payment services of these platforms will depend on their connection with local banking systems.
- However: It should be noted that neither Google Wallet nor Apple Pay have formally applied for registration with the BSP yet.
- But if they finally started applying for an OPS license, the registration process could be completed within a month.
worth reading: Last month, the central bank tightened rules for locally licensed crypto exchanges by introducing new reporting and notification requirements for virtual asset service providers (VASPs) to improve transparency and track virtual asset activities to starting January 2025.
This article is published in BitPinas: Google Wallet and Apple Pay seek to obtain BSP license to enter PH
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