The central bank said proper implementation of the National Retail Payment System (NRPS) would not only promote the financial inclusion efforts of the government but also improve the balance sheets of domestic banks.
“We are pushing for the creation of NRPS because of the savings that could be realized from this,” BSP Governor Amando Tetangco Jr. told reporters in a concluding press briefing for BSP-Bank of International Settlements (BIS) research conference held in Cebu over the weekend.
2013 data from the Better-Than-Cash Alliance showed that of the 2.5 billion payment transactions per month in the country, worth an average total of $74 billion, only 1 percent are done electronically, he said.
Tetangco said study showed that 8.5 percent of earnings of commercial banks could be saved if 99 percent of the 2.5 billion transactions are done electronically.
Also, he said, banks could have a cost savings of 25 percent to 26 percent of invoice processing annually because of NRPS.
This not to mention the reduced cash handling cost, he added.
The system, with a faster payment turnover, could lead to higher economic activities.