The BSP has officially clarified that Apple Pay and Google Pay can launch their services without going having to register as operators of payment systems (OPS).
Why don’t Apple Pay and Google Pay need BSP registration in the Philippines?
According to BSP Deputy Governor Mamerto Tangonan, Apple Pay and Google Pay don’t qualify as OPS as they will not hold funds for Filipino users. They are instead classified as technology service providers rather than payment system operators.
“We deemed them not to be an OPS because their activity is not an OPS activity,” Tangonan explained.
How will Apple Pay and Google Pay work differently in the Philippines?
Unlike their implementation in other countries, Apple Pay and Google Pay’s Philippine operations will have these key characteristics:
- No fund-holding mechanism for user accounts
- Services only read user credentials
- No direct contracts between the platforms and merchants
- Money does not pass through Apple Pay or Google Pay systems
- Financial institutions handle all monetary transactions
What technology do Apple Pay and Google Pay use for payments?
Apple Pay and Google Pay enable users to conduct financial transactions through near-field communication (NFC) technology. Users can make payments using their smartphones or smartwatches at compatible point-of-sale terminals.
Who is responsible for overseeing Apple Pay and Google Pay in the Philippines?
Financial institutions and payment service providers (PSPs) are the entities responsible for assessing and managing these technology platforms. The BSP holds PSPs accountable for any issues that may arise from integrating Apple Pay and Google Pay services.
“It’s up to the financial institution to assess them, because the one responsible to BSP is the financial institution,” Tangonan said. “If anything happens, the one accountable to us is the payment service provider.”
How popular are digital payments in the Philippines?
Digital payments have shown strong growth in the Philippines. According to BSP data for 2024:
- Digital payments account for 57.4% of total monthly retail transaction volume
- They represent 59% of total transaction value
- These figures exceed the government’s target range of 52% to 54% under the Philippine Development Plan 2023-2028
When will Apple Pay and Google Pay launch in the Philippines?
While the BSP has provided regulatory clarity, neither Apple nor Google has announced specific launch dates for their payment services in the Philippines. Regardless, the regulatory green light is a good step forward.
What are some benefits of Apple Pay and Google Pay for Filipino consumers?
- Enhanced security through tokenization and biometric authentication
- Global acceptance wherever NFC payments are supported
- Seamless integration with existing bank cards
- Convenience of contactless payments using devices consumers already own
What does this mean for the future of digital payments in the Philippines?
This regulatory clarity from the BSP could accelerate digital payment adoption in the Philippines. With major global platforms entering the market alongside established local players, Filipino consumers will have more payment options, potentially driving further growth beyond the current digital payment adoption rate.
Emman has been writing technical and feature articles since 2010. Prior to this, he became one of the instructors at Asia Pacific College in 2008, and eventually landed a job as Business Analyst and Technical Writer at Integrated Open Source Solutions for almost 3 years.
