EVERY WASTED MINUTE while waiting for a taxpayer’s turn to be served in government offices translates to missed opportunity to raise revenue.
At the Senate, a legislative proposal had just been filed in an apparent effort to digitalize payments in all government offices.
In filing Senate Bill 2330, or the proposed eBayad Act, the proponent — Senator Bong Go cited the urgent need to make government transactions faster, more accessible, and more accountable through the wider use of secure and interoperable digital payment systems.
By expanding digital options for government payments and collections, the proposed measure aims to reduce long queues, unnecessary travel, and delays experienced by people paying government fees or receiving salaries, assistance, and other public funds.
Go however clarified that cash payments would remain available, giving citizens more ways to complete their transactions based on needs and circumstances.
The proposed measure also seeks to improve public service delivery, strengthen transparency, reduce reliance on cash, and expand financial inclusion through digital technology.
“Marami na pong Pilipino ang gumagamit ng online banking, e-wallets, at iba pang digital payment platforms. Kailangan nating tiyakin na ligtas, maayos, at madaling gamitin ang mga sistemang ito, lalo na sa mga transaksyon sa gobyerno,” Go was quoted in a statement sent to the media.
Data from the Bangko Sentral ng Pilipinas showed that digital payments accounted for 52.8% of retail payment transactions by volume in 2023, exceeding the BSP’s 50% target under its Digital Payments Transformation Roadmap. The continued growth of electronic wallets, online banking, QR payments, and other financial technologies reflects the increasing public use of digital services.
Under the bill, national government agencies, government corporations, local government units, state universities and colleges, local universities and colleges, and other covered institutions would be required to use digital disbursement for payments involving goods, services, salaries, wages, allowances, honoraria, cash assistance, and other government expenditures.
Government entities would be allowed to credit funds directly to a recipient’s transaction account through interoperable electronic fund transfers and other appropriate facilities.
The bill also provides a recovery mechanism for failed digital disbursements. During calamities or emergencies when electronic transactions may be disrupted, non-digital payout channels may still be used to ensure continuity in the delivery of assistance and other government payments.
For government collections, covered agencies would be required to offer digital payment options alongside cash for taxes, fees, tolls, imposts, and other public revenues. These systems must use secure and interoperable payment solutions compliant with the National Retail Payment System Framework and the National Payment Systems Act.
“Hindi po nito inaalis ang cash payment. Ang layunin natin ay dagdagan ang pagpipilian ng mamamayan at gawing mas mabilis at convenient ang pagbabayad, habang pinoprotektahan ang kanilang pera at personal na impormasyon,” Go said.
To strengthen accountability, covered government agencies and merchants accepting digital payments would also be required to issue electronic official invoices, receipts, or equivalent digital proof of payment. These documents would be recognized as valid proof of payment, subject to applicable accounting, audit, and tax regulations.
The digital trail generated by these transactions is also intended to improve record-keeping, reduce opportunities for errors and irregularities, and make it easier to verify how public funds are collected and disbursed.
The measure also directs local government units to develop monetary and non-monetary incentives encouraging merchants to adopt digital payment systems. Particular consideration would be given to small and micro-merchants such as market vendors, sari-sari store owners, tricycle operators, and food stall owners who may need technical assistance and capacity-building support.
Go said financial digitalization must remain inclusive and should create more opportunities for small businesses without imposing unnecessary burdens on merchants and ordinary consumers.
“Dapat hindi mapag-iwanan ang maliliit na negosyante, vendors, drivers, at iba pang ordinaryong manggagawa. Kailangan may sapat na tulong, training, at abot-kayang sistema para makasabay sila sa digital economy,” he said.
The bill authorizes graduated pricing or the removal of service charges for micro-payment transactions, subject to rules to be determined by the BSP after consultation with merchants and the payment services industry. It also directs concerned agencies to improve internet availability and affordability to support the digitalization of financial transactions.
To address cybersecurity and privacy risks, the proposed law requires payment systems to integrate security and data protection into their design and operation. Payment service providers would be required to protect personal and sensitive information, respond to customer concerns, comply with reporting obligations, and cooperate with COA audits involving public funds.
The proposal retains the constitutional authority of the COA to examine, audit, and settle accounts involving government funds, including funds handled by private payment providers. All digital government transactions under the bill would remain subject to post-audit.
The bill provides a tiered transition period based on the operational readiness of each government agency, with full transition not exceeding three years from the issuance of implementing guidelines. Agencies capable of adopting the system earlier may do so within a shorter period.
Violations of the proposed law and related BSP regulations may be punishable by a fine ranging from PhP200,000 to PhP2 million, imprisonment of two to ten years, or both, without prejudice to penalties under existing laws.
“Ang digital payment system ay dapat mabilis, transparent, at ligtas. Kapag naging maayos ang pagpapatupad nito, mababawasan ang pila, mapapabilis ang serbisyo, at mas magiging madali para sa mamamayan ang pakikipagtransaksyon sa gobyerno at mga negosyo,” Go quipped.