Google Wallet and Apple Pay Entering Philippine Market
BSP in Talks with Google, Apple on Compliance
BSP Deputy Governor Mamerto Tangonan confirmed that the central bank is in discussions with Google and Apple about their operations in the Philippines. These talks primarily address the regulatory compliance needed for companies operating payment systems in the country. Tangonan emphasized that both Google and Apple are exploring the market and that their activities have raised concerns about their role as payment system operators.
“They are exploring the market, and we have discussed their activities,” Tangonan said. “From their responses, it’s clear that they are involved in the payment system, which makes them payment system operators. Therefore, they need to register.”
Google Wallet, Apple Pay Registration in Philippines
Although talks are ongoing, neither Google Wallet nor Apple Pay has formally applied for registration with the BSP. Tangonan clarified that the registration process for payment system operators is simple and could be completed in as little as a month.
“OPS registration is straightforward; once registered, they can start offering their services,” Tangonan explained.
BSP Requires Registration for Payment Operators
To operate in the Philippines, platforms like Google Wallet and Apple Pay must register with the BSP. The BSP defines payment system operators (OPS) as entities that enable and manage platforms for payments and fund transfers. OPS registration applies to various services, including merchant acquirers, payment facilitators, and bills payment providers. Currently, there are 296 companies registered as OPS with the BSP.
No Extra Requirements for Google Wallet, Apple Pay
Tangonan noted that platforms like Google Wallet and Apple Pay are not subject to additional requirements beyond registration, as they do not hold consumer funds directly. However, these platforms must establish connections with local banking systems to facilitate transactions, as users will need linked accounts to debit payments, such as deposit accounts, credit cards, or e-money accounts.
Filipino Consumers Excited for Digital Payments
The potential introduction of Google Wallet and Apple Pay has generated significant excitement among Filipino consumers. With the increasing demand for digital payment solutions, these platforms are expected to bring convenience and innovation to the Philippine market, aligning with the BSP’s broader goal of fostering financial inclusion and digital payment growth.
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