Na#onal  Retail  Payment  System  and  the  Philippine  E-­‐Commerce  Roadmap  

Philippine  E-­‐Commerce  Roadmap  Launch  02  February  2016  

 NRPS  is  a  policy  and  regulatory  framework  that  aims  to  establish  a  safe,  efficient,  reliable  and  affordable  retail  payment  system  in  the  Philippines  

What  is  NRPS?  

Retail  payments  are  payments  that  meet  at  least  one  (1)  of  the  following:  a.  Not  directly  related  to  a  financial  market  transac#on;  b.  SeBlement  is  not  #me-­‐cri#cal;  c.  The  payer,  the  payee  or  both  are  individuals  or  non-­‐

financial  organiza#ons;  and/or  d.  The  payer,  the  payee  or  both  are  not  direct  par#cipants  in  

the  payment  system  that  is  processing  the  payment.1  

 1/  World  Bank,  October  2012  

Retail  Payments  -­‐  DefiniFon  

NRPS  –  ObjecFves  

• Enable  effec#ve  and  efficient  interface  and  interoperability  using  shared  and  resilient  infrastructure  • Foster  innova#on  and  new  business  models  • Promote  fair  access  and  compe##on  amongst  par#cipants  • Facilitate  the  provision  of  a  wide  range  of  electronically  accessible  payment  products  and  services  • Availability  of  relevant  informa#on  on  retail  payment  system  to  stakeholders  

Cost  Savings      

25-­‐56%  of  invoice  processing  per  annum    

 $272  million  or  8.5%  of  net  profit  aTer  tax  of  banking  sector  in  2013  

$1.52  per  payment  –  switch  from  check  to  

direct  credit  

Reduced  cash  handling  cost  

Increased  Economic  AcFviFes  

 

Faster  payment  turnover  leads  to  higher  

economic  acFviFes  

Country  with  high  level  of  electronic  payment  

transacFons  per  capita  =  high  level  of  per  capita  

income  

Bigger  Market    

98%  of  unbanked  Filipinos  can  be  banked  through  

electronic  channels  

Cross  selling  opportuniFes  

ANew  Business  Models  

Bank  and  Non-­‐bank  partnerships  

Government  and  Private  partnerships  

Industry-­‐wide  collaboraFon  

Benefits  of  NRPS  

 Reduced  Risks                        Enhanced  Risk  Management        

 EffecFve  and  efficient  retail  payment  system      

Current  E-­‐Payment  System  

NaFonal  Retail  Payment  System  (NRPS)  

Clearing  Operator  

Client’s Transaction

Account

Merchant’s Transaction

Account

24/7 Near real-

time

SETTLEMENT  

Cost  savings  

Increased  efficiencies  

Convenient  and  easy  

Fast  and  secure  

Ra#onaliza#on  of  resources  

Cash  flow  advantages  

Less  expensive  alterna#ve  

Benefits  of  Electronic  Funds  Transfer  (EFT)  

Real-­‐Time  Low  Value  Push  Payments  

Q  &  A