Business

Online payments to the state are rising by 5,000 percent, BSP says

MANILA, Philippines – Transactions using EGov Pay – an online payment app for taxes, permits and other government fees – rose sharply in volume and value in May 2021, as Filipinos continued to use digital platforms during the pandemic.

At an online briefing, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the use of EGov Pay for payments to the government increased year-on-year by over 5,000 per cent in volume and almost 2,000 per cent in value in May.

EGov Pay transactions also increased by an average of 98 percent in volume and 126 percent in value from the first quarter of 2020 to the first quarter of 2021. Payment of clearance and tax fees drove most of the utilization of this facility.

“Apart from limiting revenue leaks, promoting better audit trails and increasing transparency, the wider use of EGov Pay is seen to promote the efficiency of the country’s revenue-generating efforts under the new economy,” Diokno said.

From just two public institutions when the facility was launched in 2019, EGov Pay now has 387 government factors. This equates to 90 percent of the total government factors for inclusion in the digital platform by 2021.

Amid the steady rise in billing, the BSP is approaching its goal of “boarding” 100 percent of the target number of participating government entities this year.

“All of these EGov payment numbers show the dramatic shift in payments to the government in digital form,” Diokno said.

Government customers can use EGov Pay by initiating payments through the Land Bank of the Philippines’ Link.Biz portal, which directs them to the Philippine Clearing House Corp.’s PayGate platform.

This platform allows public clients to choose the payment service provider from which the funds will be transferred to the government via PESONet, an electronic transfer facility that acts as an alternative to the paper-based control system.

It is expected that more public transactions will be facilitated through EGov Pay transactions as BSP continues to work closely with the payments industry, led by Philippine Payments Management Inc. to attract more public institutions and PESONet participating financial institutions.

“The sustained growth of EGov Pay transactions provides strong support for BSP initiatives to digitize person to public payments and digitize at least half of retail payment transactions by 2023,” Diokno said.

TSB

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