09 January 2025
Philippines central bank, The Bangko Sentral ng Pilipinas (BSP), has lifted its moratorium on new electronic money issuers from non-bank financial institutions (EMI-NBFI) to enhance digital payments in the country.
However, there remain conditions that need to be met before a would-be NBFI can get a licence. Applicants are advised to submit proposals that are backed by market research and data-driven analysis. These applications must clearly articulate the intended market and provide evidence-based insights into the business model and target demographic, thereby strengthening their value proposition within the financial sector.
Other conditions include standard criteria such as ownership transparency, shareholder suitability, and the fitness and propriety of directors and senior management. Applicants must demonstrate that they have adequate capital and that they have implemented proper risk management systems. In addition, applications will favour innovative business models that target unserved markets and leverage new technologies.
The moratorium, initially established in November 2021 for a two-year period, was extended to 15 December 2024. It has now expired.
“The BSP’s decision to lift the moratorium aims to promote digital payments, enhance financial inclusion, and foster innovation that could serve a wider segment of the market,” said BSP deputy governor Mamerto Tangonan.
To date, licences have reportedly been offered to 42 EMI-NBFIs and 27 EMI-banks. The licensed entities offer electronic money transfer, remittance services, and other digital financial services.
