The Bangko Sentral ng Pilipinas has approved adopting the quick response code on a national scale.
The Bangko Sentra ng Pilipinas (BSP), the central bank of the Philippines, recently announced that the monetary board approved adopting a National QR Code Standard for payments. The nationwide adoption of the quick response code is to ensure interoperability of QR-enabled financial and payment services.
The BSP sees the value in QR codes for transferring money.
QR technology has become the most convenient and cost-efficient method of transferring funds from one account to another, according to the BPS. What’s more, the Central Bank says the use of interoperable QR codes has become an increasing alternative to traditional credit and debit cards.
A quick response code holds all or the majority of the vital information required to authorize a payment transaction (e.g. account name, number, etc.). Since this is the case, using the code reduces the risk of encoding errors.
“Moreover, it is faster and easier to just scan the code than to dip or swipe a card, and sign a charge slip,” said the BSP, The BusinessMirror reports.
For the adoption of a National QR Code Standard, the goal of the BSP is to include the micro and small enterprises onboard the financial solution.
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According to the bank, the merchants need only to print out the code on a piece of paper and display the code for their customers to scan using their smartphone. This system is more cost-effective for businesses than having to invest in electronic data capture equipment like POS terminals.
The Philippine’s National QR Code Standard will be required to align with the international standard.
The recently approved policy for the national-scale QR code standard requires the Philippine Payments Management Inc. (PPMI) to determine the standard in coordination with essential stakeholders, especially the payment service providers, including both banks and nonbanks.
Additionally, to make sure that the country’s QR code payment and financial services are interoperable domestically and internationally, the policy requires that the standard be aligned with the International standard.
In addition to the National QR Code Standard, quick response code use is increasing in the Philippines. Just recently, QR Code Press reported that the first transport ticketing system using these codes was recently launched in the country.