BSP, World Bank push digital government payments

The Bangko Sentral ng Pilipinas and the World Bank are urging national and local governments to accelerate the use of digital payments for public transactions, saying the shift can reduce queues, speed up aid releases, and make state services more accessible to Filipinos.

The call was made during the high-level forum “Payments for the People: Advancing Efficient Digital Payments Adoption for Government Disbursements and Collections,” held in Makati City on May 13, 2026.

Led by the BSP and co-organized by the World Bank, the forum gathered senior officials from national government agencies, local government units, partner institutions, and the payments industry.

Discussions focused on how to speed up the digitalization of government disbursements and collections, a policy issue with direct public welfare implications because millions of Filipinos still spend time and money lining up for government fees, licenses, bills, and benefits.

BSP Deputy Governor Mamerto E. Tangonan said public sector financial digitalization has strong growth potential.

Person-to-government payments, or P2G payments, remain largely cash-based.

In 2024, only 24.6 percent of P2G transactions by volume were digital.

“What we are trying to do is make life a little easier for every Filipino who has ever stood in a long queue just to pay a government fee, renew a license, or collect a benefit,” said Deputy Governor Tangonan.

BSP Deputy Governor Bernadette Romulo-Puyat said the issue is not only about technology but also about the cost of inefficient public services for ordinary workers and households.

“For most of our kababayans, efficiency means receiving government assistance on time or paying bills without losing a day’s wage because they had to line up,” added BSP Deputy Governor Bernadette Romulo-Puyat.

World Bank Operations Manager Dandan Chen backed the initiative, saying these payments shape “how people experience government services, whether they feel accessible, predictable, efficient, and fair.”

The forum featured roundtable sessions where national agencies and local governments shared experiences, identified constraints to digital payments, and proposed next steps.

The BSP said the inputs can guide future policies and show where the World Bank and other partners can provide technical support.

Participants also discussed Executive Order No. 170, which directs covered agencies in the executive branch to adopt digital payments for government disbursements and collections.

Executive Order No. 170, approved on May 12, 2022, covers the adoption of digital payments for government disbursements and collections, according to Senate records.

The forum also tackled House Bill No. 8468, or the proposed eBayad Act, which was approved on third and final reading by the House of Representatives in March 2026.

The bill seeks to institutionalize digital payments for government transactions, recognize electronic official receipts and invoices as valid proof of payment, allow agencies to allocate funds for transaction fees, and create a BSP-chaired steering committee to oversee implementation.

The proposed measure is intended to push the country closer to a “Digital Pilipinas” by mainstreaming safe and efficient digital payment systems in public transactions, according to the House of Representatives.

The digitalization of government payments also supports the Philippine Development Plan 2023–2028, which aims to accelerate poverty reduction, expand equal opportunities, and build an innovative and competitive economy.

For citizens, the policy shift could mean faster access to government assistance, fewer lost work hours, lower transport costs, and more transparent transactions.

For government agencies and local governments, wider digital payment adoption could improve collection efficiency, reduce cash-handling risks, and generate better transaction data for public service delivery.

The BSP and World Bank said the broader goal is to make public services more efficient, transparent, and citizen-centered while advancing financial inclusion and digital transformation.