The Rise of Cashless Payments with PESONet

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The rise of cashless payments is here with PESONet, a new electronic funds transfer service that enables customers of participating banks, e-money issuers or mobile money operators to transfer funds in Philippine Peso currency to another customer of other participating banks. 

PESONet,  seen as a catalyst to spur the rise of cash-less payments in the country, is the best payment method for bulk disbursements or payments.  It is the most convenient and efficient alternative to checks!

To encourage people and businesses to conduct their financial transactions digitally, the Bangko Sentral ng Pilipinas (BSP) and the payments industry launched PESONet late last year as the country’s first Automated Clearing House (ACH) under the National Retail Payment System (NRPS). 

PesoNet — an inter-bank Electronic Fund Transfer platform that can benefit companies that still transact using traditional cash or check payment systems to go electronic. 

With PesoNet, businesses can pay their suppliers, their bills, and even their employees electronically even across different banks and financial institutions. It also allows transfer of funds and other volume or bulk transactions among participating banks. 

Users can simply log on to the participating bank’s online or mobile banking platform, choose “PesoNet,” or Transfer to Other Bank, enter payment details, press send, and payment is sent to beneficiary’s account within the same day at full value.

Since its launch, response among financial institutions was encouraging. By end of July 2018, there were already 58 financial institutions that signed up as participants with 43 of them already receiving PESONet transactions. On the other hand, 22 institutions have already made PESONet available in their online and mobile phone channels.

So why switch to PESONet? 

There are many benefits that digitizing payments can bring to both businesses and individuals. According to a study by Better Than Cash Alliance entitled “The Future of Supply Chains: Why Companies Are Digitizing Payments,” real benefits “can be accrued not just by companies but also their employees, suppliers, distributors, and in many instances, the communities they work in,” by going digital with their payments. Among these are improved efficiency, increased revenue, greater transparency and security, and stronger business relationships. Specifically for the payees, they receive payments due them within the same day with no fees nor deductions. 

In the McKinsey Global Institute’s study “Digital Finance for All: Powering Inclusive Growth in Emerging Economies”, the Philippines’ share of digital payments is 2% of all payments. With PESONet now in place in the Philippines, the BSP hopes this will improve eyeing an increase to 20% in total electronic payment transactions by year 2020.

“PESONet remains part of the BSP’s commitment to harness the power and reach of the digital space to push the agenda of greater financial inclusion. The digital revolution underscores the importance of innovation and technology to ensure the delivery of financial products and services to a wider segment of society,” says BSP Governor Nestor Espenilla, Jr. 

So far, the response from the financial sector such as the banks, a vital component for PESONet, is overwhelming. Not only was there an increase in the number of financial institutions that signed up with PESONet (total of 58 participants), the volume of transactions likewise increased. The Philippine Payments Management, Inc. (PPMI) reported that by end July  2018, a daily average of 39,000 PESONet transactions are processed. In terms of value, these transactions would be approximately PhP 3 billion per day. Compared to the same period last year, these grew by 27% in volume and 26% in value.

 “These figures show a vast improvement from batch or bulk funds transfer prior to PESONet, which is already very encouraging. We hope to see more financial institutions to start using PESONet, particularly thrift and rural banks, the non-bank electronic money issuers, and government corporations as PESONet customers and businesses using PESONet for disbursements as well as collections,” explains PPMI Chairman Justo A. Ortiz.

Among participating PESONet financial institutions include ANZ Bank, Bank of America, Bank of China, Citibank, CTBC Bank, Deutsche Bank, Development Bank of the Philippines, Eastwest Bank, HSBC, JP Morgan Chase Bank, Maybank, MUFG Bank, Ltd, Mizuho Bank, PNB, PSBank, Robinsons Bank, Shinhan Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, UCPB, Unionbank and Yuanta Savings Bank.. 

After PESONet, the BSP and the payments industry offered more options for the consumers to shift to e-payments with the InstaPay. Compared to PESONet, which normally handles volume/bulk financial transactions, InstaPay transactions are done real time 24/7 through the internet and/or mobile banking channels of participating financial institutions limited to P50,000 per transaction and without limit on the number of transactions. Funds transferred through PESONet and InstaPay are received without deductions.

For more details about PESONet,  visit PESONet participating banks’ websites, www.pesonet.info or visit www.bsp.gov.ph.

Solar energy use for homes, businesses get boost in form of financing options

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A media forum dubbed as "Usapang Maliwanag: Financing Solar Energy for Houses and Businesses" was held recently is part of the Solar Rooftop Challenge, which highlights the benefits of using solar energy while busting misconceptions that hinder individuals and companies from taking it up.

It showcases existing solar rooftop installations of urban middle class households, celebrities, churches, schools, government buildings and private establishments, as well as empowering stories of people who have joined the solar rooftop revolution in the country.

Proving that solar energy is accessible to common Filipinos, Greenpeace Philippines gathered financing institutions and solar providers to connect energy consumers to easy financing options available in the market and help increase solar energy use in homes and businesses.

Photo opportunity for the panelists of Solar Energy forum at the Kamuning Bakery Cafe, on Wednesday, August 17, 2016, left to right: Moderator Wilson Lee Flores of Philippines Star, Julius Respicio of BPI, Yeb Saño, Executive Director for Southeast Asia GreenPeace, Voltire Tupaz, Head of Sales , Solar Philippines, and Mike de Guzman, President of Solaric Philippines. ©Greenpeace 

Availing of financing packages spreads the initial costs in putting up solar installations over the long term while already generating savings on electricity costs.

In particularly, Solar rooftops can create huge impacts in lowering monthly electricity bills and the growing availability of financial assistance for those who want to avail of solar installations is a great opportunity to harness the power of the sun and break away from our dependence on fossil fuel generated electricity, like coal.

"Now is the best time to switch on the power of renewables for each home and business to be at the forefront of our fight against catastrophic climate change. The call for the uptake of solar energy is not an empty appeal to each individual's altruism but, as we are attesting today, incentives await in the form of cheap and reliable energy. Financial solutions are widely available from many institutions, and after today, we are expecting more. For both homes and businesses, renewable energy is the way to go," said YebSaño, Executive Director of Greenpeace Southeast Asia.

At present, the Philippines produces 29 percent of its electricity through renewable sources, with the Department of Energy looking to raise it to 40 percent by 2020. The mainstream adoption of renewable energy will result in creation of jobs and lower power generation costs that allow households to return the difference in savings to their budgets.

"It is important to note that while large-scale solar power plants are being constructed and going online in the Philippines, there is still a huge amount of solar energy potential that remains untapped. This is where solar rooftop installations on homes, schools, hospitals, and businesses can complete the picture of a country like the Philippines moving towards a higher share of renewable energy in its power generation mix. The energy revolution will happen right on the rooftops of Filipinos' homes," said Reuben Muni, Climate and Energy Campaigner of Greenpeace Southeast Asia Philippines.

Muni also called for a more robust participation of both the government and business sector to further push the growth and development of renewable energy in the country.

“A strong relationship between the public and private institutions, as well as progressive legislations, should boost our transition to renewable energy. It encouragesand provides incentives to more people and businesses who opt to use the technology,” Muni added.

Greenpeace Philippines is joined by speakers from Home Development Mutual Fund (PAG IBIG Fund), who discussed how its members can avail of their Home Improvement Loan, which can cover the cost of purchase and installation of solar panels. Also in the forum are Solaric Philippines, Solar Philippines and Bank of the Philippine Islands.

Journalist, columnist and owner of the Kamuning Bakery Café, where the media forum was held, Wilson Lee Flores, also shared how his decision to use hybrid or partly solar-powered air-conditioning system in the 77-year-old café drastically lowered his monthly electricity bills.

NATIONAL TRANSFORMATION COUNCIL , For good governance

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“We need transformation, change for the good.” – Franciso 'Kit' Tatad

Senator Francisco “Kit” Tatad , Corina Carlos and Secretary Norberto Gonzalez

FORMER senator Francisco “Kit” Tatad stress that there’s a need to change the Philippine system of government.

“Are we ready for anything at all, but the real question is do we need it?”

At the recent Fernandina Media Forum at Club Filipino, Wednesday, October 8, 2014, guests were Former Senator Francisco “Kit” Tatad and Former Secretary of National Defense Norberto Gonzales.

Kit Tatad said that the Philippine society is hemorrhaging morally spiritually, politically, economically and socially.

“And the cause of this hemorrhage is that we have a very corrupt system, and we cannot longer say that we have corrupted system, but instead corruption has become the system. And if we care for our life and the future of this nation, we have to change,” the good senator added.

“We have to take out those who are associated with the cause of this hemorrhage, and the government is the cause. Sense of right and wrong is no longer there,” he added.

We really need transformation, a change for the good.

Senator Tatad is a member National Transformation Council, a collective authority with members working in different sectors and a core group of progressive bishops and the laity has been going around the country to seek a consensus on how the Philippines can achieve good governance.

Former National Security Adviser Norberto Gonzalez, also a member of the council on the other hand clarifies that the National Transformation Council, which pushes for Charter change, seeks to reform the government system, not to remove President Benigno Aquino from office.

“The council goes city to city to have a consensus and once there’s a consensus, a decision will be made whether to change the president or the government has to be changed,” he said. 

The NTC, according to Gonzales, was formed not to overthrow or take over the reins of power from incumbent officials and it has no intention of taking over the government but to restore democracy and institute genuine reforms. We want our leaders to be elected also,” he explains.