Recently, Apple Pay and Google Pay officially received approval from the Central Bank of the Philippines, confirming that their operations in the Philippine market do not require central bank registration permission. Since these two payment platforms only provide technical services and do not involve fund custody, they are not considered payment system operators under the "National Payment Systems Act" and do not need to register with the central bank.
Mamerto Tangonan, Deputy Governor of the Central Bank of the Philippines, stated in a media interview that after confirmation with representatives from Apple and Google, both companies only undertake a "technical service" role in the Philippines, do not directly handle user funds, nor do they set up electronic wallet functions, thus they do not need to register as payment system operators according to relevant regulations.
He added, "They merely read payment credentials, do not hold custody accounts, nor have they signed direct contracts with merchants. This is different from some countries' practices, such as parts of the Apple Pay framework in the United States, which involve handling funds, thus are considered payment system operators. The operational model in the Philippines does not involve fund custody at all."
In other words, should any issues arise in the future, the responsibility will be borne by local banks or electronic wallet service providers. The central bank emphasizes that as technology service providers, Apple Pay and Google Pay are merely auxiliary tools in the payment process, with the real transaction processing and risk management responsibilities being undertaken by the relevant financial institutions.
In recent years, the digital payment market in the Philippines has developed rapidly. Central bank data shows that by 2024, digital payment transactions account for 57.4% of national retail transactions, with the transaction amount even higher at 59%, significantly exceeding the government's established targets.
Eli Remolona Jr., Governor of the Central Bank, pointed out in the "2024 Digital Payment Development Report": "These data indicate that an increasing number of Filipinos are actively adopting digital financial tools, and trust in online payments continues to increase."
With the smooth entry of international payment platforms such as Apple Pay and Google Pay into the Philippine market, the choices for digital payments have become more diverse and convenient. However, the central bank also reminds that although the platforms themselves are not directly regulated, the relevant financial institutions still need to strictly fulfill their risk control duties to ensure payment security.
