BSP tip for donors: use digital wallets
MANILA, Philippines – Many godparents may think that the pandemic, which restricts mobility and discourages physical gatherings, is a perfect excuse to free them from offering the traditional Christmas cash gift to their “inaanak” .
Think again. The Bangko Sentral ng Pilipinas (BSP) says the usual donation of money to godchildren as well as children of relatives and friends can continue, but they should ditch the red envelopes and send the money through more modern means.
BSP Governor Benjamin Diokno urges Filipinos to use digital wallets, like GCash and PayMaya, and mobile banking apps when sending cash gifts this holiday season.
âDigital wallets offer a safe, secure, efficient and convenient way to transfer funds to family and friends during this season of giving,â he adds, explaining that using digital money as an alternative means giving cash gifts is highly recommended while COVID-19 is still there to reduce physical contact and virus transmission between donor and recipient.
Widespread use of digital currency is in line with PASB’s digital payment transformation and financial inclusion goals.
According to its latest report, the BSP says it has achieved its goal of reaching 20% ââof digital payment volume by 2020, largely through high-frequency, low-value retail transactions via electronic funds transfers.
Diokno says the BSP remains committed to expanding the digitization of payments to at least half of all transactions by 2023 with the aim of promoting a more inclusive and technological Philippine economy.
All of this is made possible by the groundwork the central bank laid years ago to create payment systems that can deal with each other, which has proven to be crucial in keeping the Philippine financial system running in the country. strongest from the pandemic when personal mobility was severely restricted.
Diokno noted earlier that, even before the pandemic, the BSP was able to lay the essential foundation for an interoperable National Retail Payment System (NRPS) that enabled payment service providers to innovate and deliver responsive digital payment products and services.
Launched in 2015, the NRPS is a policy and regulatory framework that aims to build a secure, efficient, reliable and interoperable retail payment system.
Its goal is to give every Filipino access to financial services and have accounts to make payments and receive or transfer funds to other accounts anytime, anywhere at a reasonable price from any digital device.
A key initiative under this system is the deployment of automated clearing houses – InstaPay and PESONet – which enable transfers of funds between account holders of different banks.
But for those who have long decided not to give their downline cash this Christmas, just tell them that you don’t have an internet connection or mobile data to send the gift.
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