The Bangko Sentral ng Pilipinas (BSP) has deemed that mobile payment providers Apple Pay and Google Pay do not qualify as operators of payment systems (OPS) in the country as they do not plan to hold funds for Filipino users, removing the need for prior registration.

According to BSP Deputy Governor Mamerto Tangonan, discussions with the two firms found that both Apple Pay and Google Pay are only technology service providers, and will not have to register with the central bank as OPS.

“We deemed them not to be an OPS because their activity is not an OPS activity,” he said in a recent interview.

“Kung ganyan lang, kasi walang wallet, wala eh, hindi dumadaan sa kanila ‘yung pera. Babasahin lang ‘yung credentials, tapos walang contract between them and the merchants. OPS ka kung sa ibang countries, Apple Pay may account na nagho-hold ng funds, pero ‘yung execution nila dito, walang ganon,” he added.

(If it’s just like that, because there’s no wallet, there’s nothing, the money doesn’t pass through them. They’ll just read the credentials, and there’s no contract between them and the merchants. You’d be considered an OPS if, in other countries, Apple Pay has an account that holds funds, but the way they execute here, there’s no such thing.)

Both Apple Pay and Google Pay allow users to make financial transactions through near-field communication (NFC) devices, enabling users to tap their smartphones or smartwatches to make payments using linked debit or credit cards and e-money accounts.

Tangonan earlier said both firms are exploring offering their services to the Philippine market, but would have to first secure registration with the BSP as OPS. Discussions showed that they function only as third-party technology service providers.

“[They are] technology service providers, so it’s up to the financial institution to assess them, kasi ang responsible sa BSP, ‘yung financial institution. So if anything happens, the one accountable to us is PSP [payment service provider], so that’s why they’re being careful, maybe, although proven naman sa world,” he said.

(They’re technology service providers, so it’s up to the financial institution to assess them, because the entity responsible to the BSP is the financial institution. If anything happens, the one accountable to us is the PSP, so that’s why they’re being careful, maybe, although they are already proven worldwide.)

“So ngayon, sabi namin, PSP, it’s your responsibility. Eh siguro because it’s their responsibility, baka talagang ine-evaluate nilang mabuti,” he added

(So now, we said PSP, it’s your responsibility. Maybe because it’s their responsibility, they are evaluating it thoroughly.)

Data from the BSP show that digital payments accounted for 57.4% of the total volume of monthly retail transactions, and 59% in terms of value in 2024, higher than the target of 52% to 54% set under the Philippine Development Plan 2023-2028.

“These figures reflect the continued shift toward digital channels and the growing trust of Filipinos in using digital financial services,” BSP Governor Eli Remolona Jr. said in his message in the central bank’s 2024 Status of Digital Payments in the Philippines report. — BM, GMA Integrated News