Payment services Google Wallet and Apple Pay are in talks with the Bangko Sentral ng Pilipinas (BSP) and are exploring entering the Philippine payments system through a potential Operator of Payment System (OPS) registration.
What’s the significance: The entry of Google Wallet and Apple Pay into the Philippine market could provide digital wallet users with more payment options, enhanced convenience, and greater integration with global platforms.
Key Details: The current discussions between the Central Bank and Google and Apple are confirmed by BSP Deputy Governor Mamerto Tangonan.
- According to Tangonan, both Google Wallet and Apple Pay are exploring their compliance with regulatory requirements for OPS before entering the Philippines’ payment system.
Key Quote:
“They’re exploring, and then we had a discussion on their activities. From their responses to us, it’s clear to us that they touch the payment system. When you touch the payment system, you are an operator of payment systems. So, because of that, we deem them as operators of the payment system. Therefore, they need to register.”
Mamerto Tangonan, Deputy Governor, Bangko Sentral ng Pilipinas
Why OPS License? An OPS is an entity that manages platforms for processing payments and fund transfers, such as payment gateways, digital wallets, or services that help merchants accept payments.
- The Birth: In 2021, the BSP issued a governance policy for Operators of Payment Systems (OPS) under the National Payment Systems Act (NPSA), setting standards for governance, qualifications, and disqualifications of OPS directors and officers to ensure the safe, efficient, and stable functioning of the national payment system.
- The Numbers: There are currently 297 companies registered as OPS with the BSP.
- In Google Wallet and Apple Pay’s case, these payment services do not hold consumer funds directly and will not require additional registration beyond OPS.
- Payment services from these platforms will depend on their connection with local banking systems.
- However: It should be noted that neither Google Wallet nor Apple Pay has formally applied for registration with the BSP yet.
- But if they finally started to apply for an OPS license, the registration process might be completed within a month.
Worth reading: Last month, the central bank tightened the rules for locally licensed crypto exchanges by introducing new reporting and notification requirements for Virtual Asset Service Providers (VASPs) to improve transparency and track virtual asset activities starting in January 2025.
This article is published on BitPinas: Google Wallet, Apple Pay Eyeing to Obtain BSP License to Enter PH
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