Money transfer companies and banks alike have given us monumental benefits of being able to send to and receive funds from parties from different locations, without meeting them physically.
However, these institutions still require us to do the transactions in person to fill out forms and provide required details of both the sender and recipient to be able to transfer funds from one party to another.
With the power of the Internet and the availability of various mobile apps today, it is no longer surprising that fund transfers can be done online too. It is just a question of security as fraudulent activities are more of a risk digitally.
Bangko Sentral ng Pilipinas (BSP) aims to expose Filipinos more to the advancement of cashless transactions, working towards raising e-payment transactions to at least 20% of total transactions by 2020 compared to just one percent in 2013. Last year, the BSP launched the National Retail Payment System (NRPS), a vision of fast, efficient, secure and reliable retail payment system in the country. And last April, it introduced instaPay, one of two priority automated clearing houses (ACH) in the NRPS framework with BancNet, the country’s sole interbank network, as clearing switch operator.
InstaPay is an electronic fund transfer (EFT) service that offers real-time and low-value electronic money transfers from one account to another using any digital device. The service, which is aimed at removing the need to physically transact at bank branches, will be accessible 24/7 through mobile apps and internet banking facilities provided by participating banks and electronic money issuers.
“The instaPay platform is our initial foray into web service implementations via REST application protocol interfaces (API) secured by tokenization and Public Key Infrastructure (PKI) services. Initially, 32 of our members joined the instaPay ACH as participants in 2017 to provide a real-time electronic payment facility to their clients. instaPay will help advance the financial system’s digitalization under the BSP’s vision of a “safe, reliable and affordable” retail payments system,” BancNet said.
Through this online platform, recipients can get hold of the money almost immediately for free, while senders are secured that their funds are delivered safely at a very low cost.
More Holistic Digital Financial Ecosystem
With instaPay, consumers can make low value electronic fund transfers below P50,000 per transaction, without limits on how many transactions a day. The transactions are allowed between accounts of participating BSP-supervised banks, digital wallets and non-bank e-money issuers in the Philippines.
However, participating banks and money issuers still have varied policies.
The sender will be charged fees depending on the participating financial institution’s pricing strategy. The receiver, on the other hand, will get the full amount transferred without incurring any fees. Both senders and recipients must have accounts with participating financial institutions to be able to use this platform.
Funds transferred via instaPay are received almost instantaneously, 24×7, all year round. This is a notch better than other money transfer companies and bank counters which could have limited availability, as they observe limited operating hours.
Because instaPay is subject to the security standards mandated by the Bangko Sentral ng Pilipinas and BancNet, users are assured that their accounts are protected from fraudulent activities caused by online hacking and the like. instaPay participants are required to comply with regulatory issuances on cybersecurity, including BSP Circular 982, which details the central bank’s expectations for banks and other financial institutions in addressing and mitigating security threats.
However, just like any other funds transfer services, customers sending via instaPay are advised to exercise responsible security practices in providing the correct recipient’s information and amount to be transferred. Customers should check the information carefully before allowing the transaction to proceed.
Funds transfers via instaPay are final. If a customer transferred funds to a wrong beneficiary account, the customer should inform his bank or non-bank e- money issuer as soon as possible.
On the other hand, if a customer received money and does not know where it came from, the customer should call his bank or non-bank e-money issuer immediately and authorize it to return the money to the sender.
Because transactions are done electronically, waiting time is drastically reduced, providing convenience and affordability to customers. Banks and money transfer institutions on the other hand can look at saving money on physical operations.
The adoption of instaPay is expected to push more Filipinos to use online channels for payment transactions.
Instapay is the second clearing house created specifically for e-payments after the Philippine EFT System and Operations Network (PESONet), which settles funds in batches, went live in November last year.
Participating institutions which have sending and receiving services through instaPay are AUB, BDO, China Bank, China Bank Savings, Equicom Savings, Metrobank, PBCOM, PS Bank, Security bank and Union Bank. Those with only receiving services are Bank of Commerce, CTBC Bank, East West Bank, G-Xchange, Land Bank, Malayan Bank, OmniPay, Partner Rural Bank, PayMaya, PNB, Philtrust, RCBC, RCBC Savings, Robinsons Bank, Sterling Bank, Sun Saving Bank, UCPB, and Yuanta Savings Bank.