Phillippines’ Central Bank Sets June 2020 Deadline for Industry to Adopt QR Standard
by Fintech News Philippines October 18, 2019In line with its thrust of ensuring the efficiency of payment systems in support of inclusive economic development, the Monetary Board has approved a policy requiring the adoption of a National Quick Response (QR) Code Standard for payments.
The QR technology has emerged as a convenient and cost-efficient means of moving funds from one account to another. However there have been concerns raised recently by the creator of QR codes regarding its security.
The adoption of a QR Code Standard on a national scale is expected to bring more Filipinos as well as micro and small enterprises onboard the financial system. The merchants simply need to print out the code on a piece of paper and display the code for their clients to scan using a smartphone. This operational requirement entails much lower cost than investing in electronic data capture equipment like point-of-sale terminals which are usually needed for card-based payment transactions.
The newly-approved policy prescribing a National QR Code Standard provides that the country’s Payment System Management Body, that is, the Philippine Payments Management, Inc. (PPMI), determine the National QR Code Standard in coordination with key stakeholders particularly the payment service providers (PSPs), both banks and non-banks.
For a smooth implementation of the Standard, the policy sets out a period within which the PPMI shall inform the Bangko Sentral of the Standard approved by the PPMI Board. The PSPs shall adopt the Standard within thirty (30) calendar days from the date of said notification. Nevertheless, considering that a number of PSPs have been offering QR-enabled payment services, the policy allows these PSPs to fully comply with the Standard up to 30 June 2020.
The adoption of the National QR Code Standard is another collaborative initiative between the Bangko Sentral and the PPMI under the National Retail Payment System (NRPS) regulatory framework. With this initiative, the Bangko Sentral is optimistic that all Filipinos including those at the bottom of the social pyramid can enjoy the benefits of a safe, efficient, and inclusive retail payment system.
Featured image credit: screengrab from Paymaya
