BSP Issues E-Payment Guidelines

The Bangko Sentral ng Pilipinas (BSP) released guidelines and recommendations on pricing electronic payment (e-payment) services offered to end-users by BSP Supervised Institutions (BSIs) to promote the regulatory principles of fair market-based, responsible, and transparent pricing.

 

These guidelines are in line with the regulatory requirement of a Board-approved policy on pricing as well as the BSP circulars on Adoption of the National Retail Payment System Framework (BSP Circular No. 980) and the Financial Products and Services Consumer Protection Act (BSP Circular No. 1160).

 

BSIs are expected to:

  1. Adopt reasonable and fair market-based pricing structures that discourage price-fixing agreements with other BSIs;
  2. Practice responsible pricing by providing e-payment services that are affordable for clients and sustainable for the BSIs;
  3. Maintain transparent pricing through appropriate fee disclosure to end-users, regulatory reporting, and non-deceptive marketing of e-payment services by BSIs.

 

The BSP particularly encourages BSIs to support the long-run sustainability and expansion of the digital payments industry by integrating inclusive pricing practices such as lowered e-payment fees.

 

To improve e-payment procedures, the BSP recommends that BSIs adopt a policy on retail e-payment transactions with detailed discussions on the rationale and quantitative support for determining fees and charges. BSIs may consider (a) price and cost drivers such as transaction volume, risk level, industry and peer prices, and the preferred pricing model; (b) costs analysis and accounting methodologies; and (c) applicable laws, rules, and regulations.

 

Lastly, the BSP requested the BSIs to participate in the annual Survey on Pricing Digital Payments to provide the BSP with valuable data to understand current industry-wide practices and gauge the effectiveness of policy issuances on pricing. Responses to the survey are to be submitted within thirty (30) days from May 24, 2024 and within thirty (30) days from end of the reference calendar year for succeeding submissions. Participating BSIs will be given access to the survey results.

 

The full Memorandum and the Survey can be accessed here. 

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