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The Philippines is emerging as a key player in ASEAN’s push to create a more seamless and inclusive cross-border digital payment system, according to a new report released by the ASEAN 3 Macroeconomic Research Office (AMRO).
The report, titled “Powering Payments: The Role of Technology in ASEAN’s Regional Payment Connectivity Initiative,” highlights the country’s growing adoption of fast and interoperable digital payment systems. This positions the Philippines to play an integral role in shaping the bloc’s Regional Payment Connectivity (RPC) initiative, first launched in 2022.
The RPC aims to streamline cross-border payments using technologies such as QR codes and local currency settlements. It currently includes nine ASEAN economies and has expanded its engagement to India, Japan, and Hong Kong.
The Bangko Sentral ng Pilipinas (BSP), a founding member of the initiative, has also been collaborating with regional peers under Project Nexus—a multilateral effort to connect fast payment systems via a hub-and-spoke model.
While the Philippines has yet to implement a live cross-border payment link, it has already adopted ISO 20022 standards for real-time settlement and fast payments, placing it in a good position for further integration.
AMRO acknowledged that widespread implementation faces challenges, including differing regulatory frameworks, incompatible technologies, and inconsistent consumer protections. The report recommends adopting centralized models, enhancing data privacy standards, and investing in emerging technologies such as AI and blockchain to address these hurdles.
Despite these issues, the Philippines’ large overseas population and expanding digital economy make it a strong candidate to benefit from improved cross-border financial services, the report said.
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