PH launch for Apple Pay and Google Pay possible even without BSP registration

Authorities said they do not qualify as operators of payment systems.

Apple Pay and Google Pay logos

No need to register

The Bangko Sentral ng Pilipinas (BSP) has confirmed that Apple Pay and Google Pay do not have to register to be able to launch their services in the country.

According to reports, BSP Deputy Governor Mamerto Tangonan said the government's discussions with the two companies found that they are only technology service providers. This means that they do not have to register with the BSP as operators of payment systems (OPS).

In the Philippines, the BSP regulates and supervises OPS. These are entities that maintain platforms for payments or fund transfers, operate systems for payment instrument usage, and process payments on behalf of others.

Kung ganyan lang, kasi walang wallet, wala eh, hindi dumadaan sa kanila ‘yung pera. Babasahin lang ‘yung credentials, tapos walang contract between them and the merchants. OPS ka kung sa ibang countries, Apple Pay may account na nagho-hold ng funds, pero ‘yung execution nila dito, walang ganon, Tangonan said.

Both Apple Pay and Google Pay allow users to make contactless payments using their smartphones or smartwatches by securely storing their credit and debit card information. These use near-field communication or NFC technology to communicate with payment terminals.

[They are] technology service providers, so it’s up to the financial institution to assess them, kasi ang responsible sa BSP, 'yung financial institution. So if anything happens, the one accountable to us is PSP [payment service provider], so that's why they’re being careful, maybe, although proven naman sa world, Tangonan said.

Last year, the BSP said it had already met with representatives from Apple Pay and Google Pay as they look into offering their services in the Philippines.

Via: GMA News Online