BSP bares new framework for merchant payment scheme

The Bangko Sentral ng Pilipinas (BSP) has finalized a regulatory framework for merchant payment acceptance activities (MPAA), ramping up its digitalization and financial inclusion initiatives.

- KEISHA TA-ASAN

In a circular, the BSP said enabling merchants to accept different forms of payments is crucial in facilitating the smooth flow of funds and contributing to the wider adoption of digital payments in the country.

“For digital payments to thrive, minimum standards and good practices must be established to safeguard the funds received from customers of merchants and protect the rights and interests of endusers that deal with operators of payment systems (OPS) that engage in MPAA,” it said.

The framework also ensures that OPS that engage in MPAA adopt commensurate governance structures and appropriate measures to effectively manage risks attendant to their business model.

This includes risks related to settlement, operations, information technology, anti-money laundering and countering terrorism and proliferation financing (AML/CTPF) as well as end-user protection.