Lawmaker seeks accelerated shift to gov’t digital payments

By Jose Cielito Reganit, Philippine News Agency

Under HB 3646 that he filed on Aug. 13, the government shall mandate digital platforms for taxes, fees, tolls, purchases, and other public disbursements, including account-based direct credits to recipients. (Pixabay Photo)

MANILA – Camarines Sur 5th District Rep. Miguel Luis Villafuerte is pushing for the passage of House Bill (HB) No. 3646, or the Promotion of Digital Payments Act, to institutionalize and accelerate the adoption of safe, interoperable digital payments to overcome hurdles in the Marcos administration’s digital transformation agenda.

“Challenges to a speedy switch to online payments include inadequate access to reliable digital infrastructure, slow internet connectivity in remote areas, costly payment fees, and limited acceptance of digital platforms,” Villafuerte said in a statement on Thursday.

Under HB 3646 that he filed on Aug. 13, the government shall mandate digital platforms for taxes, fees, tolls, purchases, and other public disbursements, including account-based direct credits to recipients.

It shall also require the Bangko Sentral ng Piipinas (BSP) to expedite adoption of a national quick response (QR) code standard for fully interoperable payments; and compel local government units to pass ordinances requiring merchants to install functional digital payment systems and assist micro- and small-enterprises in adopting them.

The government shall likewise authorize agencies to set up technical support units, incentive frameworks, and compliance funds; empower the BSP, the Department of Trade and industry (DTI), the Department of the Interior and Local Government (DILG) and the Department if Information and Communications Technology (DICT) to implement capacity-building programs; and direct the Department of Science and Technology (DOST) and the DICT to expand access to affordable digital infrastructure.

Villafuerte, chair of the House Committee on Information and Communications Technology, noted that the BSP has already surpassed its digital-payments goal, with digital retail transactions reaching 52.8 percent in 2023 and rising to 57.4 percent in 2024.

Merchant payments accounted for the largest share, followed by person-to-person transfers and business-to-business transactions.

Despite these gains, he stressed that challenges persist nationwide, especially in remote areas.

HB 3646 builds on the framework of Republic Act (RA) 11127, or the National Payment Systems Act, which grants BSP authority to regulate payment systems.

It also aligns with RA 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, by streamlining services through digitization.

“This shift will enhance fiscal transparency, reduce transaction costs, broaden financial inclusion, and strengthen the digital economy, and ensure that innovation serves both the economy and the daily needs of Filipino citizens,” Villafuerte said.