PhilPaSS transactions rise by 22%

PhilPaSS transactions rise by 22%

THE NUMBER of transactions processed and settled through the central bank’s Philippine Payments and Settlements System (PhilPaSS) rose by 22.2% last year after the Bangko Sentral ng Pilipinas (BSP) opened the facility to banks handling the remittances of overseas Filipino workers (OFWs).

The BSP, in its annual report released on Monday, said the number of transactions rose to 916,304 last year from 749,591 in 2009. The value of these transactions climbed as well, to P206.6 trillion from P188.5 trillion.

“The significant increase in the number and volume of transactions stemmed mainly from OFW remittance transactions processed and settled through the PhilPaSS REMIT system,” the central bank explained.

“As of end- Dec. 2010, the total number of OFW remittance transactions was recorded at 112,600 with a corresponding value of P4 billion.”

The PhilPaSS REMIT System, which was launched in October last year, provides safer means of sending remittances to beneficiaries. It does away with couriers that banks tap to transfer remittances to other banks, where beneficiaries maintain accounts. The system also charges lower fees, and is equipped with a feedback mechanism that allows OFWs to trace the status of their remittances.

Remittances rose by 8.2% to a record $18.8 billion last year, accounting for nearly 10% of the country’s gross domestic product (GDP).
“However, average daily transactions for OFW remittances processed and settled through the PhilPaSS REMIT system reached only 667, lower than the target of 6,500 average daily transactions, due to system enhancement being undertaken by banks,” the central bank said.
“Moreover, contracts with tieup remittance partners constrained participating banks from shifting immediately the processing and settling of their transactions through PhilPaSS,” it added.

PhilPaSS is the central bank’s real-time gross settlements system, which faciliates high-value payment transactions between banks through the deposit accounts these banks maintain with BSP. -- ASOA

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