Land Bank of the Philippines plans to use pre-paid cards to distribute the conditional cash transfer program to its beneficiaries.
LandBank which recently partnered with OmniPay Inc. said it plans to use the prepaid card payment system, an upgrade from the present ATM cards in other government projects where it is the disbursing bank, for starters, LandBank handles the payment for agrarian reform beneficiaries.
Under the conditional cash transfer program of the government, P500 cash is given to a family provided that each school-age children attend classes.
It is one of the more successful poverty alleviation program of the government and beneficiaries may increase to up to one fourth of the population, deemed living below poverty line.
Payment through cards helps beneficiaries and cuts chances for corruption. The upgrade to Omnipay cards will help beneficiaries by expanding the network of banks they can withdraw their funds from.
LandBank president and chief executive officer Gilda Pico said the banks partnership with OmniPay will provide customers not only CCT beneficiaries with access to JCB and UnionPay’s extensive network, not just in the country but also in many branch locations and merchants worldwide.
Cardholders will also be able to access their funds in all BancNet, Megalink, Expressnet, and Nationlink ATMs nationwide. It is also capable of handling different currencies such as the Philippine peso, US dollar, Japanese yen, Chinese yuan, Hong Kong dollar, etc.
The prepaid card also has anti-fraud features to ensure the security of the clients’ card details and transaction.
OmniPay was authorized by the BSP to become an electronic money issuer-NBFI. The company was the first to launch the JCB prepaid card product in the Asia Pacific and the first to launch the UnionPay international prepaid card product in the country.
It partners with key institutions from both private and government sectors in line with the company’s mission of financial outreach and sustainability.
“It is a distinct honor for OmniPay to partner with LandBank in complete support of its vision to promote inclusive growth through the delivery of innovative financial services,” said OmniPay Inc. chairman Melito Salazar.
Salazar added that OmniPay is committed to support the bank in providing world-class technology and support for new, innovative digital payments products, thus enabling LandBank to extend card programs to its institutional and corporate clients that are flexible and customizable to their specific requirements.
He also announced that OmniPay will open its network of 1,500 Cash-In Cash-Out locations to all LandBank cardholders with an additional 1,300 locations going live by the first quarter of 2015.