Philippines, Singapore ink FinTech Cooperation Agreement

The central banks of the Philippines and Singapore have inked a cooperation agreement to boost collaboration and partnership between the two countries involving financial technology.

According to the Bangko Sentral ng Pilipinas (BSP) it signed an enhanced FinTech Cooperation Agreement (CA) with the Monetary Authority of Singapore  (MAS) to facilitate interoperable payments between the two countries on Monday, November 8.

“The CA will facilitate the linkage of both countries’ real-time and QR payment systems, to facilitate instant, seamless, and low-cost cross-border payments,” the BSP said in an emailed statement.

Central bank data indicates that remittance flows between the two countries totaled $2.15 billion in 2020, and averaged some 900,000 travelers between both countries prior to the COVID-19 pandemic.

The BSP said the latest agreement is in line with the G20’s efforts to address existing issues in global cross-border payments, and the goal of the Association of Southeast Nations (ASEAN) to integrate regional payments by 2025.

Both central banks have also committed to explore multilateral interoperability of the projects, in line with regional efforts to establish further linkages within the ASEAN and countries outside the region.

“Effectively linking our QR and real-time payment systems will enhance the safety and efficiency of cross-border payments through the smoother and seamless international transfer of funds, ultimately promoting the financial welfare of Filipinos that regularly use cross-border payment services,” BSP Governor Benjamin Diokno said.

Diokno said the agreement will benefit overseas Filipinos; the export, import, and tourism businesses; and firms with affiliates or investors overseas.

“The enhancements to the MAS-BSP FinTech Cooperation Agreement will help fast-track payments connectivity between Singapore and the Philippines,” MAS Managing Director Ravi Menon said.—LDF, GMA News