On this Blog: BSP's Instapay for eCommerce

Together with GCash, Bangko Sentral ng Pilipinas’ InstaPay allows MSMEs to easily send funds or receive payments using their smartphone. You can send cash anywhere in the Philippines where there is data connectivity. It’s like a mobile wallet that offers you hassle-free and safer ways to go cashless.

What is BSP’s InstaPay?

InstaPay is an electronic fund transfer (EFT) service that allows you to transfer funds up to PHP 50,000. Launched during the second quarter of 2018, this EFT credit push system is designed to facilitate small value payments. Transactions are almost instantaneous between participating banks and non-bank e-money issuers (EMI).

This 24×7 service is useful in buying goods or services, paying toll fees and tickets. It aims to help the e-Commerce transactions of the Micro, Small and Medium Enterprises (MSMEs). MSMEs are any businesses or services that have an asset of up to PHP 100 million and employment size of fewer than 200 employees. According to the Department of Trade and Industry, MSMEs help reduce poverty by employing around 62% of the country’s labor force.

How does InstaPay work and who are its partner-banks?

Through InstaPay, MSMEs can build a transaction history that could help establish their creditworthiness. If you are one, it can help you access credit from formal lending institutions. It will also enable you to accept e-payments from both e-money and bank accounts even without the usual point-of-sale (POS) device used for cards. The following are the InstaPay Bank Participants as of January 2019:

Sender/Receiver:

1. Asia United Bank Corporation
2. Bank of Commerce
3. BDO Unibank, Inc.
4. China Bank Savings, Inc.
5. China Banking Corporation
6. Dungganon Bank (A Microfinance Rural Bank), Inc.
7. East West Banking Corporation
8. Equicom Savings Bank, Inc.
9. G-Xchange, Inc.
10. Land Bank of the Philippines
11. Malayan Bank Savings and Mortgage Bank, Inc.
12. Maybank Philippines, Inc.
13. Metropolitan Bank and Trust Company
14. Philippine Bank of Communications
15. Philippine National Bank
16. Philippine Savings Bank
17. PNB Savings Bank
18. RCBC Savings Bank, Inc.
19. Rizal Commercial Banking Corporation
20. Robinsons Bank Corporation
21. Security Bank Corporation
22. Sun Savings Bank, Inc.
23. Union Bank of the Philippines
24. United Coconut Planters Bank

Receiver Only:

1. Bank of the Philippine Islands
2. CTBC Bank (Philippines) Corporation
3. Development Bank of the Philippines
4. Isla Bank (A Thrift Bank), Inc.
5. OmniPay, Inc.
6. Partner Rural Bank (Cotabato), Inc.
7. PayMaya Philippines, Inc.
8. Philippine Business Bank, Inc., A Savings Bank
9. Philippine Trust Company
10. Philippine Veterans Bank
11. Sterling Bank of Asia, Inc. (A Savings Bank)
12. UCPB Savings Bank, Inc.
13. Yuanta Savings Bank Philippines, Inc.

The InstaPay and GCash partnership

Yet it is surprising to know that many of our local micro businesses have no bank accounts. This makes it difficult for them to transact business with suppliers requiring payment to bank accounts. Fortunately, BSP signed a deal with GCash allowing MSMEs to transfer funds through GCash.

GCash is a BSP-regulated mobile money service that lets you buy load and purchase goods. Using a smartphone, you can send and receive money through Globe or TM. GCash utilizes the BSP’s InstaPay platform for its transfer service.

How to use GCash

Electronic fund transfers are now more convenient since you do not need a bank account for the transaction to go through. Just download the GCash App for free from the App Store or from Google Play, and sign up for an account.

To load your GCash account, just visit the over 16,000 GCash Partner Outlets nationwide, like 7-Eleven, SM Business Centers, and Villarica Pawnshop branches. Cashing-in to a GCash account is free.