BSP Launches Paleng-QR Ph Program
Bohol’s Tagbilaran is the latest city to adopt cashless transactions in local markets and tricycle hubs through the Paleng-QR Ph Plus Program, as reported by Inquirer. Developed through the collaboration between The Bangko Sentral ng Pilipinas (BSP) and the Department of Interior and Local Government (DILG), the program aims to popularize the use of mobile devices when paying in public markets and public transportation, particularly tricycles.
By scanning QR codes provided in vendors’ stalls and drivers’ vehicles, customers can make digital payments and do away with cash. Paleng-QR Ph is under the QR Ph initiative, which aims to establish a national QR code for digital payments. The goal of the program is to strengthen the use of QR codes in digital payments between digital banks and e-wallet providers.
Partnership with Local Government Units (LGUs)
The implementation of the Paleng-QR Ph Program is at the local government level. The BSP and DILG signed a joint memorandum circular last June 2022, urging all LGUs to participate in the initiative.
Under the program, LGUs are expected to issue an ordinance encouraging vendors and tricycle operators to accept digital payments using QR codes.
The local officials will also help stakeholders open a transaction account, such as an online bank or an e-wallet, which will receive the QR Ph payments. This will be done during the “account opening day,” which the LGU will organize, in partnership with financial service providers or FSPs, namely banks and e-wallet providers.
These FSPs will set up customer assistance booths and distribute QR code printouts to vendors during the account opening day.
For its part, the DILG will provide technical assistance to LGUs regarding account onboarding, digital payments, and financial literacy. They will also help BSP in its efforts to raise awareness about the program and fast-track country-wide adoption.
Benefits to Stakeholders
The Paleng-QR Ph program is expected to help vendors, tricycle drivers, and customers keep up with the new normal of digital payments. With cashless payments, stakeholders can avoid counterfeit money and reduce physical contact with others, which can help curb the spread of infectious diseases like COVID-19.
According to the BSP, the transaction account can likewise give users easy access to financial services, such as loans, insurance, and investments.
Meanwhile, for the participating LGUs, the Paleng-QR Ph program can help facilitate a more efficient distribution of financial assistance. The aid can go straight to the constituents’ transaction accounts.
Frequently Asked Questions (FAQs) about Paleng-QR Ph
The BSP provides answers to vendors’ FAQs about Paleng-QR Ph:
- I’m a vendor with no valid ID. Can I still open a transaction account? Vendors with no valid ID can coordinate with their respective LGUs for assistance. The local officials will issue a certification for the account opening.
- I’m a customer, not a vendor. Can I still join the account opening day? Yes, customers are actually encouraged to open a transaction account to make digital payments the norm when doing transactions in public spaces.
- Has my LGU already adopted Paleng-QR Ph? Baguio is the first city to implement Paleng-QR Ph, followed by Davao City and Tagbilaran City. More local government units are expected to follow suit. Vendors can reach out to local officials to know if the Paleng-QR program has been launched in their locale.
Cities that Implement Paleng-QR Ph
The program rollout started in August 2022 and has reached three major cities. Here’s a running list of cities that are now shifting to cashless payments:
Baguio City
According to an Inquirer report, BSP Governor Felipe Medalla said that the implementation of the Paleng-QR Ph program in the summer capital is “testing in the right city.”
Meanwhile, Mayor Benjamin Magalong recently ratified City Ordinance 71, series of 2022, to encourage all business establishments and local public transportation to adopt QR Ph digital payments, as reported by The Manila Times. The measure covers public market vendors, sari-sari stores, ambulant vendors, and all public transport groups.
Davao City
On November 2022, the Paleng-QR Ph was launched in Davao City’s Bankerohan Public Market. Several FSPs were present during the event, including Land Bank of the Philippines, Asia United Bank, Rizal Commercial Banking Corporation, and electronic money issuers, such as GCash, Maya, and StarPay.
Local authorities in Davao believe that the incentive stakeholders will get from Paleng-QR Ph is an increased number of customers since more people are now going cashless.
Tagbilaran City
In January 2023, Tagbilaran City joined the shift to digital payments. The program launch was held in a central public market, wherein private groups in the financial services sector also participated.
In another report by Inquirer, Mayor Jane Yap said that the Paleng-QR initiative supports the efforts of Tagbilaran to become a smart city. Meanwhile, BSP Deputy Governor Bernadette Romulo-Puyat noted that shifting to digital payments will support the growth of small businesses and improve the quality of life of Filipino families.
