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PhilStar Business

BSP plans pause on new payment system operators

The Bangko Sentral ng Pilipinas (BSP) wants to suspend for a year the registration of new payment system operators as part of tighter safeguards to make merchant payments traceable and curb fraud and illicit transactions.

Context & Analysis

The timing suggests regulators want to clean up the merchant-payment stack before more players enter. QR codes, e-wallets, and bank apps have moved from optional checkout tools to everyday payment rails for sari-sari stores, restaurants, and online sellers. That expansion improved convenience, but it also made transactions harder to follow when money moves through multiple platforms. The focus on traceability therefore targets the weak link in digital commerce: not the consumer tapping a code, but the intermediaries that connect merchants to banks, wallets, and settlement systems.

For businesses, the immediate question is who is affected. If only newly registered firms are held up, existing payment providers can keep serving merchants while new entrants wait. That could give incumbents room to adjust pricing, tighten compliance, and upgrade transaction monitoring without facing an immediate wave of competition. Merchants may also feel fewer short-term choices if they rely on niche tools, micro-merchant packages, or industry-specific integrations. Companies that use several payment channels should review contracts and confirm whether any planned launch, reseller arrangement, or in-house processing solution depends on a firm still awaiting registration.

The broader issue is how far regulators can push traceability without slowing the adoption of digital payments. The Philippines has made significant progress in financial inclusion, but rapid growth has also exposed gaps in merchant identity verification, account monitoring, and reporting. Watch for guidance on what counts as a new payment system operator, whether existing firms can expand into new services during the pause, and how the BSP will coordinate with banks, e-wallets, and merchants to keep QR payments reliable. If implemented narrowly, the measure could make digital payments safer and more credible; if overbroad, it may limit competition at a moment when smaller businesses still need affordable checkout options.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: philstar.com

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