This document outlines a roadmap for mass adoption of e-payment services in the Philippines. It discusses how e-money has driven financial inclusion in other countries through increased access points like agents. Keys to adoption include ease of use, digital literacy, and trusted services. While the Philippines currently has low access points per capita compared to other nations, opportunities exist like shifting government payments to e-payments. The roadmap's vision is for widespread e-payment use through a supportive regulatory system and engaged stakeholders across government, businesses, and consumers. This would yield benefits like cost savings, transparency, and new markets through an expanded e-payment ecosystem and infrastructure.
4. E-Money Driving Financial Inclusion
There are now more than 18 countries where e-money
accounts and the use of agents are having a dramatic
impact on financial inclusion.
5. • Access
– Ease of account opening (tiered KYC), sufficient access points,
interoperability, and availability of services
• Usage
– Digital / mobile literacy, use cases, business value
proposition, e-payment ecosystems
• Quality of Services
– Excellent customer-centric services, trust, security and
consumer protection
Keys to e-Money &
e-Payment Adoption
6. AFI | Alliance for Financial Inclusion
Mobile E-Money Supporting
Financial Inclusion in Other Ways
2012
2006 13%
29%20 Million
bank accounts
4 Million
bank accounts
24 Million
registered mobile money users
Percentage of adults using a bank account in Ke
14. Current State of e-Money /
e-Payments in the Philippines
• Stakeholders
– Government of the Philippines – national and local
– Banks, MFIs, Cooperatives, EMIs, Other Financial Service
Providers, Payment Service Providers
– Private sector (Large Companies, E-Commerce, FMCGs, QSRs,
SMEs)
– Consumers
• Level of Services
– Agents - CICO
– Bills Payments
– Payroll
– Mobile e-money
– e-Money
– Payment Service Providers - e-Commerce
15. Objective: Financial inclusion deepened resulting from an
increase of e-Payments adoption, use, and development
• Widespread e-Payment adoption and use by individual
constituents/consumers, government, and businesses
• Supportive regulatory environment for e-Payment
development (e.g. National Retail Payments System)
• Improved transparency and accountability in government
transactions
• Increased efficiency and profitability in business
transactions
• e-Payment ecosystem poised for continued growth and
innovation
E-PESO Vision and Objectives
16. Benefits of
e-Payment Adoption
• Cost Savings
– Diminishes the direct / indirect costs associated with physical cash-
handling
and in-kind goods distribution
• Transparency
– Increases accountability and tracking of financial flows, resulting in
less fraud
• Speed & Security
– Generally faster and safer means of delivery of funds with e-Payment
receipts
• Financial Inclusion
– Creates opportunities for financial access and affordability for those
formerly excluded from formal financial systems
• New Market Access & Economic Development
– Opens doors to fee - for - service business models in previouslySource: Better Than Cash Alliance
17. • A prime opportunity now being driven by Government
shifting to e-payments (disbursements & collections)
• Support by policy makers from the BSP to DTI to
support an appropriate regulatory & policy enabling
environment
• Convergence of players from banks, telecoms, e-money
issuers, payment service providers, e-commerce
players, transport operators
Addressing Access Issues
19. Supporting an
e-Payment Ecosystem
• Support for an inclusive e-
Payment system
• Expand e-Payment
infrastructure (online payments,
mPOS, NFC technology, agent
network models)
• Promote interoperability across
e-Payment instruments,
mechanisms, and channels
• Support BSP as it leads the
development of a National
Retail Payments System
• Ensure security, consumer
20. AFI | Alliance for Financial Inclusion
Convergence & Interoperability
will Drive e-Payment Adoption
E-Payments
21. One Stop Shop Portal for
e-Payments
ONE STOP SHOP
e-Payments
Ecosystem
in the Philippines
Opportunities
for
Government
(National,
LGUs)
Opportunities
for the Private
Sector
(Businesses)
Regulations &
Policy Updates
Banks, EMIs,
Payment Service
Providers
Use Cases –
Building an
e-Payment
Ecosystem
E-
commerce
23. Thank you
For more information, please contact:
Mr. John Owens
Email: jowens@epeso.org.ph
Follow us on twitter:
@PaymentsPH
Editor's Notes
By adopting e-payments, your organization can derive a variety benefits:
Improved cost savings and efficiency
Increased transparency
Reduced security risks to program staff and participants
Improved access to financial services for your payment recipients
Improved access to a growing ecosystem of value-added and business services for your payment recipients
By adopting e-payments, your organization can derive a variety benefits:
Improved cost savings and efficiency
Increased transparency
Reduced security risks to program staff and participants
Improved access to financial services for your payment recipients
Improved access to a growing ecosystem of value-added and business services for your payment recipients
Vision:
Financial inclusion expanded as a result of the electronic payment adoption and use.
Objectives of E-PESO:
Support the development of an inclusive, interoperable electronic retail payment system that improves access to financial services for the poor.
Promote widespread e-payment adoption and use by individual consumers, businesses, and government
Supportive regulatory environment for e-payment development (e.g. National Retail Payments System)
Improved transparency and accountability in government transactions
Sustainability: E-payments ecosystem poised for continued growth and innovation.
Our goal is to support the Philippines to reach a “tipping point” in e-payment adoption. Currently, e-payment usage is around 1%. Our hypothesis is that if we get the system to 20% that e-payment use will become a “norm” within the Philippines. Reaching this scale will also stimulate private sector investment and something that the market carries forward.
The E-PESO project is rooted in diffusions of innovation theory that is based on extensive research regarding how and why people embrace new technologies. When a technology reaches the 20-30% adoption mark, you begin to see exponential growth in use
Source: CGAP
National Retail Payment Systems:
We will continue to support GPH’s efforts to establish an inclusive and interoperable National Retail Payments System that is covered by appropriate payments system legislation. Ultimately, a well-crafted National Payments System Act will institutionalize industry reform efforts and insure that adequate legal protection is available for all participants in the payments industry.
References
1 2009 BSP Consumer Finance Survey
2 Financial Inclusion in the Philippines. BSP. 2013.
3 2012 Mobile Southeast Asia Report
4 Less than 35% based on Demand Study of Domestic Payments by BFA in 2010.
5 Demand Study of Domestic Payments. BFA. 2010.