The Bangko Sentral ng Pilipinas (BSP) is reported to have introduced updated rules for Operators of Payment Systems (OPS) to apply electronically for Merchant Acquisition Licences (MAL). These rules aim to enhance financial inclusion and strengthen regulations in the Philippines’ digital payments sector.
Operators providing clearing or settlement services are classified as OPS under the National Payment Systems Act. Merchant acquisition refers to processing payment transactions for merchants and transferring funds to them.
BSP Memorandum No. M-2025-002 specifies a three-step process for MAL applications: eligibility assessment, evaluation, and license issuance.
Smaller OPS handling less than PHP 100 million monthly transactions must meet a minimum capital requirement of PHP 5 million. Those with higher volumes need PHP 10 million. Licence fees range between PHP 25,000 and PHP 60,000.
The BSP seeks to build trust in digital payments through these rules. The BSP mandates governance standards and risk management measures to address operational risks, anti-money laundering (AML), and customer protection.
In July 2024, the BSP introduced Circular No. 1198, which defined the framework for Merchant Payment Acceptance Activities (MPAA). These activities include enabling merchants to accept payments, processing transactions securely, and supporting payment infrastructure.
The BSP Payments Supervision and Licensing Department will oversee MAL applications and ensure OPS compliance. These measures aim to simplify transactions and encourage wider adoption of digital payments in the country.
This Merchant Payment Systems framework by BSP highlights their dedication to fostering a secure and efficient financial system. By empowering merchants to accept a variety of payments, the central bank is driving economic growth and expanding access to digital financial services.
Featured image credit: Edited from Freepik
