BSP pushes for 24/7 payment system readiness

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The Bangko Sentral ng Pilipinas (BSP) has urged stakeholders to work together in building a 24/7 real-time gross settlement (RTGS) payment system to enable round-the-clock financial transactions across the country and abroad.

The call was made during the “2025 Peso Real-Time Gross Settlement (RTGS) Forum” held at BSP’s Head Office in Manila on 18–19 September and at its North Luzon Regional Office on 2 October 2025.

“Handa na ba tayo sa 24/7 na RTGS? I encourage us to design that future together,” BSP Senior Assistant Governor Edna C. Villa told the forum’s 350 attendees.

The participants included representatives from banks, quasi-banks, nonbank e-money issuers, financial market infrastructures, and clearing switch operators engaged in the country’s RTGS operations.

Currently, the Philippines’ RTGS system, PhilPaSSplus — owned and operated by the BSP — runs from 9:00 a.m. to 5:45 p.m. on weekdays.

BSP is looking to evolve PhilPaSSplus into a 24/7 system to support higher transaction volumes, real-time settlements, and better alignment with global payment systems.

A continuous RTGS operation would enable faster transactions such as 24/7 overseas remittances, real-time cross-border e-commerce payments, and same-day bond settlement.

This vision comes at a time when digital payment volumes in the Philippines continue to rise, driven by greater adoption of mobile wallets, online banking, and cashless transactions.

The forum also marked the fourth anniversary of PhilPaSSplus and served as a platform to share updates on key initiatives enhancing the RTGS infrastructure.

Among the updates discussed were proposed changes to operating procedures on holidays and work suspensions, enhancements to the system’s liquidity tools, and the results of the 2025 customer satisfaction survey.

Officials also reported progress on the ISO 20022 Standard Harmonization Project, which aims to align the Philippine payments system with global messaging standards for better interoperability.

Another key update involved the implementation of penalties on erring Peso RTGS participants to reinforce system discipline and operational compliance.

BSP highlighted system enhancements such as automated debiting of proceeds in the Intraday Settlement Facility, which allows participants to fund their queued or expected payments in PhilPaSSplus more efficiently.

The use of Liquidity Saving Mechanisms was also introduced to optimize settlement flows and reduce the need for high liquidity buffers.

The central bank emphasized that these innovations aim to support the country’s evolving digital economy and improve the overall user experience in the payments ecosystem.

BSP officials were joined by leaders from BancNet, SWIFT, and the Philippine Clearing House Corporation (PCHC), who shared insights on the future of real-time payment infrastructure.

An RTGS system processes high-value financial transactions by settling them one at a time, in real-time, and on a gross basis, ensuring that each transaction is final and irrevocable.

The BSP reiterated that evolving PhilPaSSplus to operate 24/7 would unlock significant benefits for consumers, businesses, and financial institutions alike.

Such a system would allow late-night e-commerce transactions from overseas buyers to be settled immediately, while bond market players could complete trades within the same day.

These capabilities are expected to improve liquidity, reduce counterparty risk, and support financial market deepening.

The central bank is currently consulting with stakeholders to assess system readiness, technical requirements, and necessary regulatory adjustments to realize this 24/7 vision.

It also continues to strengthen cyber resilience, security protocols, and operational reliability to ensure the integrity of the RTGS system under expanded hours.

PhilPaSSplus was launched in 2021 as the enhanced version of the original Philippine Payments and Settlements System (PhilPaSS), aimed at improving efficiency and flexibility in financial transactions.

It now serves as the backbone of the country’s payment infrastructure, enabling settlement of interbank transactions, government securities, and monetary operations.

BSP’s push for 24/7 RTGS operations is part of its broader Digital Payments Transformation Roadmap, which aims to digitize 50% of retail payments and onboard 70% of Filipino adults into the formal financial system by 2026.

The roadmap envisions a safe, efficient, and inclusive payments ecosystem that can support the needs of an increasingly digital and interconnected economy.

With continued collaboration among banks, regulators, and fintech players, the BSP remains confident in transitioning to a round-the-clock, digitally powered financial infrastructure.