Google Pay and Apple Pay are the most used digital wallets or mobile payment platforms in the world. Although they are known, it is still not registered to operate in the Philippines. According to a BSP Deputy, there are several conversations on exploring the operations of these two in the country.
What is Google Pay and Apple Pay
Google Pay and Apple Pay are mobile payment and digital wallet services. They enable you to make secure payments using your smartphone, smartwatch, or other devices.
To further explain, Google Pay is designed for Android users. It allows you to pay for things online, in stores, and even send money to friends. Google Pay can also save loyalty cards, tickets, and transit passes.
Meanwhile, Apple Pay is made for Apple devices like iPhones, iPads, Apple Watches, and Macs. It works similarly to Gpay. It lets you pay in stores, apps, and on websites. You can also use it to send money to other Apple users.
Both platforms use technologies like Near Field Communication (NFC) for contactless payments. They also have strong security features to protect your information. This includes tokenization and biometric authentication (fingerprint or face ID).
Discussions with Bangko Sentral ng Pilipinas (BSP)
Since the two platforms are looking to expand their operations in the Philippines, a few discussions are happening in BSP.
According to the statement of BSP Deputy Governor Mamerto E. Tangonan, they advise Google and Apple to register as operators of payment systems. They consider them as OPS since they don’t hold funds. Instead, they are just a bridge between the card provider and the merchant.
Based on the definition of a central bank, an operator of payment system (OPS) is any person who provides clearing or settlement services. Making the two platforms classified as OPS.
BSP encourages both platforms to register because they enable payments or fund transfers. They provide a system that processes payment with the permission of any person or government.
Apple Pay and Google Pay Registration
As per BSP Deputy, Google and Apple do not require a special license to operate in the Philippines. Instead, they only need to register with the Bangko Sentral ng Pilipinas (BSP). As of December, there are a total of 296 registered Operators of Payment Systems (OPS) under the BSP. Becoming an OPS in the Philippines does not require any special licenses, only registration.
Wrapping up
The potential entry of Google Pay and Apple Pay into the Philippine market marks a significant step forward for digital payments in the country.
Both platforms offer seamless and secure payment solutions, catering to Android and Apple device users, respectively.
Because of how they operate, the Bangko Sentral ng Pilipinas (BSP) is actively encouraging these platforms to register as Operators of Payment Systems (OPS).
As discussions progress, the expansion of Google Pay and Apple Pay into the Philippines holds promise for increasing digital payments, further driving the country’s digital economy. This move could pave the way for a more inclusive and tech-driven financial ecosystem.