BSP to implement 24/7 payment system in 2026

The Bangko Sentral ng Pilipinas (BSP) will implement a payment system that works around the clock starting in 2026 as part of efforts to expand real-time and cross-border transactions, a top official said.

BSP Deputy Governor Mamerto E. Tangonan told BusinessWorld that the central bank is planning to expand the Philippine Payment and Settlement System (PhilPaSS) Plus operations to run for 24 hours, seven days a week.

“Implementation will start next year,” he said in a Viber message.

This came after BSP Senior Assistant Governor Edna C. Villa urged multiple banks, quasi-banks, nonbank electronic money issuers, financial market infrastructures and clearing switch operators to help the central bank design a 24/7 real-time gross settlement (RTGS) system.

In a separate statement on Tuesday, the BSP said the new system will help facilitate faster and more real-time transactions as well as connect the country’s payment system with its foreign counterparts.

“A round-the-clock operation will enable the payment system to settle more transactions in real-time, interlink with foreign payment systems, and further economic activities,” it said. “These may include 24/7 remittances, cross-border e-commerce flows, and bond trading.”

It noted that a 24/7 operating system would allow local online sellers to receive payments from international customers even during late-night hours.

The cash leg in bond trading may also be settled on the same day rather than the following business day, the BSP added.

Currently, the PhilPaSS Plus, which is owned and operated by the central bank, is only accessible from 9 a.m. to 5:45 p.m. during weekdays.

“The system is 24/7 ready,” Mr. Tangonan said. “But operating hours will be extended.”

An RTGS system facilitates the instant settlement of payments, transfer instructions, or other obligations individually on a transaction-by-transaction basis.

By settling retail payment clearing results, PhilPaSS Plus ensures that people, businesses and the government can send and receive money through several channels including checks, automated teller machines, InstaPay and PESONet, the central bank said.

In an event held in late October, BSP Governor Eli M. Remolona, Jr. said digital payment systems drive economic efficiency, financial inclusion and systemic resilience.

“Digital payments connectivity is not merely a technological advancement but a strategic enabler of economic efficiency, financial inclusion, and systemic resilience,” he said. “It lays the foundation for deeper trade, investment, financial and capital market integration across economies.”

Meanwhile, Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said making payment systems accessible during late hours may boost consumer spending.

“Having accessible payment systems even during nighttime can allow for better convenience for consumers, encourage higher spending, all of which can help the economy,” he said in a Viber message.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said this would also support micro, small and medium enterprises, e-commerce, and digital workers, who benefit from faster turnover of funds.

“It also strengthens the digital economy by reducing reliance on cash and extending access to financial services for unbanked or underbanked Filipinos, especially in remote areas where traditional banking hours are (limited),” he said in a Viber message.

However, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., noted that a round-the-clock operation could expose the country’s payment system to more cybersecurity threats. 

“The challenge is cybersecurity; more uptime means more exposure,” he said in a Viber message. “The key is strong security and real-time monitoring, so we get speed without sacrificing safety.”

The BSP added that PhilPaSS Plus’ operations will likewise be enhanced through automated debiting in the intraday settlement facility to provide peso RTGS participants with liquidity for payments, as well as new liquidity saving mechanisms to improve overall settlement efficiency.

As of the third quarter, the total value of PhilPaSS Plus transactions hit PHP 151.253 trillion, up nearly 21% from the PHP 125.05 trillion recorded during the same period last year, the latest BSP data showed. — Katherine K. Chan