The Bangko Sentral ng Pilipinas (BSP) has issued updated guidelines for entities seeking to register as operators of payment systems (OPS), replacing requirements established nearly seven years ago.

In a memorandum signed by BSP Deputy Governor Mamerto E. Tangonan, the central bank outlined a three-phased evaluation process for OPS registration. The phases include verification of applicant eligibility, assessment of legal documents, and review of business models before certificates are issued.

The new guidelines supersede the registration and notification requirements previously set in September 2019 under BSP Memorandum No. M-2019-023.

"All applicants shall conduct a self-assessment to determine the applicability of OPS registration under RA (Republic Act) No. 11127 and BSP Circular No. 1049," the central bank stated.

"As part of this process, applicants are expected to verify the completeness and adequacy of all documentary submissions and ensure full compliance with applicable regulatory requirements prior to filing their application."

Under the updated framework, applicants must submit documents substantiating their legal existence and authority to operate, along with a presentation deck covering all key aspects of their business plan.

The business plan should include detailed descriptions of services, the exact date payment services commenced in the Philippines or a target launch date for new entities, end-to-end transaction flows and settlement processes, principal agreements with clients or partners, and sample terms and conditions for users, among other requirements.

The BSP also introduced a three-month cooling-off period for applications that are returned, denied, or withdrawn. Applicants must wait until this period lapses before filing a new application.

However, reapplications must "satisfactorily address" the noncompliance issues that led to the initial rejection, the central bank noted.

Applicants are additionally required to designate an authorized representative for all communications. Any change in this appointment must be reported to the BSP within five business days.

All applications and communications must now be submitted via e-mail to the BSP's Payments Supervision and Licensing Department, replacing the dedicated online portal established in 2019.

The BSP specified that submission files must be sent as direct e-mail file attachments. Applications using shared drives, cloud-based folders, or private file storage links will be rejected.

OPS — except for banks and nonbank financial institutions operating as electronic money issuers — must pay a one-time, nonrefundable registration fee of P20,000 for the issuance of their registration certificate.

The updated framework builds on the regulatory foundation established by RA No. 11127, the National Payment Systems Act, and BSP Circular No. 1049, its implementing rules, which together govern the oversight and supervision of payment systems in the Philippines. The revisions come as the country's digital payments ecosystem continues to expand, with the central bank tracking sustained growth in both the number of registered OPS and the volume of digital transactions.

As of July 24, a total of 314 OPS were registered with the central bank. — Katherine K. Chan