The Bangko Sentral ng Pilipinas (BSP) has released a draft circular proposing new regulations to reinforce integrity controls in payment transactions.
The proposal comes at a time when digital payments are surging, with QR Ph transactions alone growing exponentially across retail and merchant ecosystems.
What the Draft Circular will Mandate
The draft circular outlines stricter governance requirements for Operators of Payment Systems (OPS), enhanced reporting of operational incidents, and mandatory integration into a centralized merchant database.
With this, BSP’s objective is clear: to build a more transparent, accountable, and fraud‑resistant payments infrastructure that can withstand both domestic and cross‑border risks.
The circular also proposes a temporary suspension of new OPS registration applications while the integrity framework is being implemented. The pause allows BSP to recalibrate oversight mechanisms and ensure that existing OPS are fully aligned with the new standards before admitting new entrants.
For the country, this demonstrates a decisive regulatory stance—prioritizing systemic integrity over rapid expansion. The reforms are not only about compliance but also about resilience.
The central bank recognizes that as digital payments become mainstream, the risks of fraud, cyberattacks, and money laundering increase.
Through strengthened integrity controls now, BSP is situating the Philippines to meet international standards and avoid reputational risks that could undermine confidence in its financial system.
National QR Code Merchant Database
At the heart of the reforms is the creation of a National QR Code Merchant Database, a centralized repository of all QR Ph‑enabled merchants. The database will serve as a single source of truth, ensuring that merchant identities are verified, transactions are traceable, and fraudulent activity can be detected more efficiently.
With consolidated merchant information available, BSP aims to eliminate duplication, reduce anonymity, and strengthen consumer trust in QR payments.
The database also supports interoperability. With QR Ph already functioning as a national standard, the centralized database ensures that merchants across different OPS are uniformly registered and monitored.
This enhances transparency, facilitates regulatory audits, and provides a foundation for advanced analytics to detect suspicious patterns.
In practice, the database will allow regulators to quickly identify merchants engaged in suspicious activity, OPS to streamline onboarding processes, and consumers to transact with greater confidence. It is a structural reform designed to make QR payments not only convenient but also secure.
Relevant Participants of the Reform
The primary participants in this initiative are Operators of Payment Systems (OPS), which include banks, e‑wallet providers, and fintech platforms authorized by BSP.
Merchants who accept QR Ph payments will also be directly affected, as they must be registered in the centralized database. Consumers, while not direct participants, stand to benefit from improved security and transparency.
Regulators such as BSP and the Anti-Money Laundering Council (AMLC) will play supervisory roles, while OPS will be responsible for ensuring that their merchant networks comply with registration and reporting requirements.
The ecosystem thus involves a multi‑layered collaboration between regulators, financial institutions, merchants, and consumers.
BSP recognizes that payment integrity cannot be achieved by regulators alone; it requires active participation from OPS, compliance from merchants, and trust from consumers.
Existing OPS in the Philippines
The Philippines hosts a diverse set of BSP‑licensed OPS. Among the most recognized are:
- GCash (via Globe Fintech Innovations, Inc.)
- Maya (formerly PayMaya Philippines, Inc.)
- AF Payments Inc. (beep card)
- Alipay Connect (Alipay+)
- AsiaPay (PesoPay)
- BancNet, which operates PESONet and InstaPay
These OPS have become household names, driving the adoption of digital payments across retail, transport, and online commerce. Their participation in the centralized database is crucial, as they collectively handle millions of transactions daily.
As these merchants’ data are integrated into a single repository, BSP ensures that these OPS operate under uniform standards, reducing fragmentation and enhancing oversight.
The prominence of OPS like GCash and Maya also emphasizes the importance of consumer trust. These platforms have become gateways to financial inclusion, and their compliance with BSP’s integrity controls will set the tone for the broader ecosystem.
Difference with QR Ph
The centralized database is distinct from the QR Ph network, though closely related.
QR Ph is the national standard for QR code payments, ensuring interoperability across banks and e‑wallets. The centralized database, on the other hand, is a repository of merchant information.
While QR Ph standardizes the technical aspects of payments, the database strengthens the integrity of the ecosystem by ensuring that merchants are properly identified and monitored.
In essence, QR Ph enables seamless transactions, while the database ensures those transactions are secure and transparent. When combined, they form complementary pillars of the digital payments infrastructure.
Why Is BSP Strengthening Control Over the OPS?
BSP’s push to strengthen control over OPS stems from the rapid growth of digital payments and the associated risks.
As transaction volumes rise, so do opportunities for fraud, money laundering, and operational failures. OPS serve as gateways to the financial system, and any weakness in their controls can have systemic consequences.
The central bank aims to prevent integrity breaches, protect consumers, and safeguard the reputation of the Philippine financial system through tightened oversight. The centralized database is a proactive measure, ensuring that OPS operate under uniform standards and that merchant networks are transparent and accountable.
BSP’s proposal also aligns the Philippines with global best practices. International regulators increasingly emphasize transparency and accountability in digital payments, and BSP’s reforms demonstrate the country’s commitment to meeting these standards.
Beneficiaries of an Improved Philippine Digital Landscape
The benefits of BSP’s controls extend across the ecosystem.
Filipino consumers gain greater trust in digital payments, knowing that merchants are verified and monitored. Merchants benefit from streamlined registration and reduced risk of fraud.
OPS gain a more transparent operating environment, reducing reputational risks and enhancing compliance; while regulators benefit from improved oversight and data analytics, enabling more effective monitoring and enforcement.
These reforms depict a step forward for Philippines’ digital finance as they enhance transparency, strengthen consumer protection, and align the Philippines with global best practices in payment integrity.
One-by-one, by building a secure and accountable ecosystem, BSP lays the foundation for sustained growth in digital finance, supporting financial inclusion and innovation.
Economically, with strengthened payment integrity, BSP enhances investor confidence, supports remittance flows, and positions the Philippines as a credible player in the global financial system.
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