House bill promoting use of digital payments in gov't transactions approved on final reading

The House of Representatives on Thursday approved on third and final reading the bill promoting the use of digital payments for financial transactions of the government and all merchants.

Voting 201-0-0,  the chamber approved House Bill 8992 or the Promotion of Digital Payments Act that aims to facilitate transactions, arrangements, or exchanges of goods and services by promoting the universal, safe, and efficient use of the electronic mode of conveying payments for financial transactions of the government and the general public.

The bill will allow the use of safe and efficient digital mode of payments by all national government agencies, government-owned and controlled corporations, and local government units in the collection of tax payments, fees, tolls, imposts as well as other revenues.

Aside from that, it will also authorize the use of electronic mode of payments in goods, services and other disbursements.

"All NGAs, GOCCs, and LGUs shall also explore the feasibility of adopting a comprehensive incentive framework for selected financial transactions to encourage the availment of digital payments," the bill states.

"Moreover, LGUs may impose reduced fees or grant other incentives for merchants providing efficient digital payment systems."

Meanwhile, the proposed measure also tasks the Bangko Sentral ng Pilipinas to accelerate the adoption of the national quick response code standard to facilitate their interoperability of QR-driven payment services and eliminate the need for merchants and clients to maintain several accounts.

It notes that only the payment providers duly accredited by the BSP may be engaged by agencies to handle their digital payment transactions.

The BSP will also be mandated to promote measures that will strengthen the public's trust on digital payment schemes.

The proposed law also mandates local government units to extend assistance to small and micro-merchants to facilitate their adoption of digital transaction capability.  —KBK, GMA News