e-peso activity 7th quarterly reportpdf.usaid.gov/pdf_docs/pa00n2b2.pdf · coa commission on audit...

2July 2008 2

E-PESO ACTIVITY

7th Quarterly Report First Quarter, Year Three, October 1 – December 31, 2016

First Submission: January 30, 2017

Prepared for the United States Agency for International Development by Chemonics International Inc. under Contract No. AID-492-C-15-

0001. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International

Development or the United States Government.

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CONTENTS

1. PROGRAM OVERVIEW AND INTRODUCTION .......................................................................... 5

2. ACTIVITY IMPLEMENTATION PROGRESS ..................................................................................... 7 2.1 Progress Narrative ............................................................................................................................. 7 2.2 Implementation Status ................................................................................................................... 13 2.3 Implementation Challenges ........................................................................................................... 21 2.4 PMP Update ...................................................................................................................................... 25

3. INTEGRATION OF CROSSCUTTING ISSUES and USAID FORWARD PRIORITIES ........ 29 3.1 Gender Equality and Female Empowerment ............................................................................ 29 3.2 Policy and Governance Support .................................................................................................. 29 3.3 Public Private Partnerships ............................................................................................................ 30

4. STAKEHOLDER PARTICIPATION AND INVOLVEMENT ........................................................ 32

5. MANAGEMENT AND ADMINISTRATIVE ISSUES ....................................................................... 33

6. LESSONS LEARNED ............................................................................................................................. 33

7. PLANNED ACTIVITIES FOR NEXT QUARTER INCLUDING UPCOMING EVENTS ....... 35 ANNEX 1: Press Coverage and Mentions .......................................................................................... 37 ANNEX 2: Summary of Results to Date by Key Indicator .............................................................. 38 ANNEX 3: CDI Snapshot ........................................................................................................................ 47

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ACRONYMS

ACH Automated Clearing House

AFI Alliance for Financial Inclusion

ATM Automated Teller Machine

ATVI Auto Top-Up Ventures Inc.

BAP Bankers Association of the Philippines

BFA Bankable Frontier Associates

BFP Bureau of Fire Protection

BIR Bureau of Internal Revenue

BLGD Bureau of Local Government Development

BPLS Business Permit and Licensing System

BSP Bangko Sentral ng Pilipinas

BTCA Better Than Cash Alliance

CDI Cities Development Initiative

CEPALCO Cagayan de Oro Electric Power & Light Company

COA Commission on Audit

COWD Cagayan de Oro Water District

DBM Department of Budget and Management

DBP Development Bank of the Philippines

DICT Department of Information and Communications Technology

DILG Department of Interior and Local Government

DOF Department of Finance

DQA Data Quality Assessment

DSWD Department of Social Welfare and Development

DTI Department of Trade and Industry

EBPLS Electronic Business Permitting and Licensing System

EFT Electronic Fund Transfer

EIU Economist Intelligence Unit

FICCO First Community Cooperative

FSIC Fire Safety and Inspection Certificate

G2P Government to Person

GPH Government of the Philippines

ICT Information and Communications Technology

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IFAS Inclusive Finance Advocacy Staff

IMMAP Internet and Mobile Marketing Association of the Philippines

JMU Joint Memorandum Circular

LGU Local Government Unit

M&E Monitoring and Evaluation

MIMAROPA Mindoro, Marinduque, Romblon, and Palawan

MOA Memorandum of Agreement

MOU Memorandum of Understanding

MSME Micro, Small and Medium Enterprises

NATCCO National Confederation of Cooperatives

NBSFI National Baseline Study on Financial Inclusion

NRPS National Retail Payment System

P2G Person to Government

PALECO Palawan Electric Cooperative

PCHC Philippine Clearing House Corporation

PFG Partnership for Growth

PhilPaSS Philippine Payments and Settlements System

POS Point-of-Sale Device

PSA Philippine Statistic Authority

PSMB Payments System Management Body

SGM Settlement Guarantee Mechanism

SME Small and medium enterprises

USAID United States Agency for International Development

USTSP University of Science and Technology of Southern Philippines

USAID / E-PESO FY3-Q1 QUARTERLY

REPORT 5

5

1. PROGRAM OVERVIEW AND INTRODUCTION

Program Name: E-PESO Activity

Activity Start Date And End

Date: March 18, 2015-March 17, 2020

Name of Prime

Implementing Partner: Chemonics International, Inc.

[Contract/Agreement]

Number: AID-492-C-15-00001

Name of

Subcontractors/Subawardees:

Leonine Initiatives

MicroSave Private Ltd.

Major Counterpart

Organizations

Bangko Sentral ng Pilipinas

Department of Budget and Management

Department of Interior and Local Government

Department of Social Welfare and Development

Bureau of Internal Revenue

Geographic Coverage

(cities and or countries) Philippines

Reporting Period: October 1, 2016 – December 31, 2016

The E-PESO Activity is a USAID/Philippines program supporting the objectives of the U.S.-Philippines

Partnership for Growth (PFG), which focuses on addressing binding constraints to achieve sustained, more

inclusive economic growth. With 98% of payment transactions in the Philippines taking place through cash,

promoting a shift to electronic payments (e-payments) represents unrealized potential to promote

inclusive economic growth. E-PESO partners with the Government of the Philippines (GPH) and the

private sector to achieve a rapid, widespread increase in e-payment adoption and usage. Through program

activities, E-PESO’s goal is for e-payments to account for 20% of retail transactions by the year 2020.

To shift from a cash-based economy to electronic, E-PESO supports the development of a lasting, inclusive

economic environment and sets the stage for new financial products to enter the market that explicitly

meet the need of those striving to improve their lives. Enabling access to electronic transaction accounts

will provide the backbone to ensure the majority of Filipinos can use e-payments, which provide a secure

and cost-effective means to access a full range of payment and financial services. This broader range of

financial services can help Filipinos build assets, better withstand economic shocks, and participate more

broadly in the formal economy. E-payments also offer an improved ability to track financial flows in line

with GPH’s thrust towards greater transparency and accountability in financial transactions.

E-PESO builds on the GPH leadership in promoting e-payments as a vehicle for expanding financial

inclusion. Recognized in 2014 by the Economist Intelligence Unit (EIU) as one of the global leaders in

promoting financial inclusion, the Philippines’ successful track record in deepening financial inclusion

mirrors worldwide trends: Countries that institute national financial inclusion strategies tackle poverty at

a higher rate than those that do not. Leading the charge, the Bangko Sentral ng Pilipinas (BSP)’s National

Strategy for Financial Inclusion capitalizes on global trends and focuses heavily on ensuring that the majority

of Filipinos have access to electronic transaction accounts.

USAID / E-PESO FY3-Q1 QUARTERLY

REPORT 6

6

Over the next five years, Filipinos will benefit from new, more affordable and innovative e-payment

products, an increased number of outlets through which to spend electronic money (e-money), improved

transparency and accountability in their transactions with government, and a strong regulatory

environment that protects consumers. The exponential growth in e-payments will stimulate private sector

investment where all adult Filipinos have access to critical financial services and set the stage for a more

inclusive society.

To fulfill PFG goals and E-PESO objectives, the activity focuses on four components:

Component 1: Rapid Adoption of E-payments in Financial Systems. Incentivizing

adoption of e-payments, the activity supports digitization of large-scale payment streams in both

the private and public sectors. E-PESO will provide technical assistance to GPH agencies in

improving their services by expanding the use of e-money and e-payments in government-to-

person (G2P) and person-to-government (P2G) payments. E-PESO also works to bring the

benefits of digital payments to targeted businesses that have national reach or local impact,

including businesses such as those from the fast-moving consumer goods industry that have large

retail payment flows.

Component 2: Infrastructure for E-payments Expanded. To increase the value

proposition to customers using e-payment instruments, E-PESO promotes interoperability among

the various digital finance products, services and players (e.g. mobile devices, ATMs, debit/credit

and stored value cards, electronic fund transfers (EFT), banks, e-money issuers, payment service

providers, e-money agent networks and other financial service providers). E-PESO also supports

the complex array of front-end and back-end providers, backstopping them to connect users as

well as reduce transaction and search costs.

Component 3: Enabling Environment for E-payments Improved. Building trust,

convenience, and security in e-payments, E-PESO supports the BSP in its initiative to establish a

National Retail Payment System (NRPS), intended to rationalize the fragmented payments system

into an interoperable and interconnected one. E-PESO provides technical assistance as BSP

oversees the implementation of the NRPS. The activity likewise provides technical assistance and

training to support BSP in promoting digital security, consumer protection, e-payments

confidence, financial inclusion, and e-payment stability within the broader payment system.

Component 4 (cross-cutting): E-payment Ecosystem Developed in Key Cities

Identified under USAID’s Cities Development Initiative (CDI). Promoting global

knowledge sharing of emerging trends, E-PESO identifies and addresses supply and demand

constraints inhibiting broader e-payment usage, including addressing policy and regulatory gaps. E-

PESO also supports the expansion of e-payment ecosystems with particular focus on key cities

identified under USAID’s CDI.

USAID / E-PESO FY3-Q1 QUARTERLY REPORT

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2. ACTIVITY IMPLEMENTATION PROGRESS

2.1 Progress Narrative

Indicators Year 1

Actual

Year 2

Actual

Year 3

Annual

Target

Y3/Q1

Target for

the Quarter

Y3/Q1

Actual for

the Quarter

Performance

Achieved for

Y3/Q1, Actual

vs. Target (%)

Desired Impact (DI): Efficient, Transparent, and Inclusive Retail E-Payment System Contributing to Broad-

based Growth

Indicator DI 1&2: Increased economic

opportunity,

a. Number of e-payment users(a)(d)

New

Cumulative

b. Percent of population 15 years old and above

who are e-payment users (b)

0

10.9

million

16.1%

0.503

million

11.4

million

16.2%

0.45

million

11.85

million

16.5%

--

--

--

--

--

--

n/a

n/a

n/a

Indicator DI 3: Transparency and efficiency of the retail payment system improved. (This indicator will be tracked under

outcome Indicator 3.1 - Financial regulation refined to manage growth of e-payments.)

Indicator DI 4: More predictable and

reliable financial tools for the poor,

Number of financial products, services

or applications that are

designed/enhanced to meet the needs of

low income clients,

New

Cumulative

0

0

1

1

2

3

0

1

0

1

n/a

100%

Desired Purpose (DP): Scope of E-Payment Usage Reaches Tipping Point for Scale

Indicator DP 1: E-payments

accounting for at least 20% of all retail

payment transactions,

Percent of e-payments accounting for

retail payment transactions

1.03% 2.76% 5.32% -- -- n/a

Indicator DP 2: Growth in the

number of active e-payment users to

reach scale, (c)

Number of active e-payment users,

New

Cumulative

0

6.9

million

--

10.2

million

420k

10.92

million

--

--

--

--

n/a

n/a

Notes:

(a) Baseline for e-payment users refer to registered e-money accounts as of December 2014.

(b) Number of e-payment users over number of Philippine population aged 15 years old and above derived from the

Philippines Statistic Authority (PSA) census projections (http://www.nscb.gov.ph/secstat/d_popnProj.asp, accessed May

17, 2016).

(c) Baseline from Better Than Cash Alliance (BTCA) Philippines Country Diagnostic Study, July 2015. However, yearly

targets are derived from the 2016 Philippine Individual Payments Baseline Study that covers all types of electronic card

instruments (ATM/debit cards, credit cards, pre-paid cards, and e-money cards).


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(d) Baseline from Inclusive Finance Advocacy Staff of BSP as of December 2014. Yearly targets are derived from the

BTCA Philippines Country Diagnostic Study, July 2015, and the 2016 Philippine Individual Payments Baseline Study that

covers all types of electronic card instruments (ATM/debit cards, credit cards, pre-paid cards, and e-money cards).

* Proposed changes to target.

- Philippine Household Survey on Payments renamed to 2016 Philippine Individual Payments Baseline Study

For Indicators DI 1&2, E-PESO used baseline data provided by the Inclusive Finance Advocacy Staff

(IFAS) of the BSP and the Philippine Statistics Authority (PSA) census projections. The data is based

on the number of e-money accounts reported by e-money issuers. It excludes data on ownership and

usage of credit cards, debit cards linked to deposit accounts, as well as prepaid cards issued by entities

that are not supervised by the BSP. However, with the use of E-PESO’s 2016 Philippine Individual

Payments Baseline Study, the data will now include credit cards, ATM/debit cards, pre-paid cards, and

e-money linked cards. Further, Indicators DI 1&2 only have annual targets since the method to track

the indicator is through surveys conducted once every two years by E-PESO. Hence, there is no

quarterly target except for the last quarter.

On the other hand, financial tools referred in Indicator DI 4 are products, services, educational

materials, technology and the like that allows access and use of e-payments by the poor. Indicator DI

4 has a target of two for Year 3. To measure e-payment usage reaching the tipping point for scale,

Indicator DP 1 data is derived from the Better Than Cash Alliance (BTCA) Philippines Country

Diagnostic Study that looked into e-payments transactions across individuals, businesses, and

government. However, targets are derived from the USAID E-PESO 2016 Philippine Individual

Payments Baseline Study and the PSA population projections for 2015 and 2020. Similar to Indicators

DI 1&2, Indicators DP 1 and 2 only have annual targets since the method to track the indicators is

through the 2016 Philippine Individual Payments Baseline Study conducted once every two years.

Hence, there is no quarterly target and results.

Component 1: Rapid Adoption of e-Payments in Financial System

Indicators Year 1

Actual

Year 2

Actual

Year 3

Annual

Target

Y3/Q1

Target for

the Quarter

Y3/Q1

Actual for

the

Quarter

Performance

Achieved for

Y3/Q1,

Actual vs.

Target (%)

Desired Outcome 1: Rapid Adoption of E-Payments in Financial Systems

Indicator 1.1: Adoption of new e-

payment services as

collection/disbursement option in five (5)

national GPH agencies

New

Cumulative

1

1

1

2

1

3

0

2

0

2

--

100%

Indicator 1.2: Adoption of m-money and e-

payments in all cities of PFG CDI and other

cities/municipalities,

Number of CDIs (and other

cities/municipalities) that introduced or

enhanced m-money and e-payment options,

New

Cumulative

3

3

3

6

5

10

0

6

0

6

--

100%

Indicator 1.3: New e-payment

implementation and adoption by 500 (small,

medium, and large) businesses,


9

9

Number of businesses introducing or

enhancing e-payment options as a result of E-

PESO support,

New

Cumulative

4

4

1

5 150

200

15

20

0

5

0%

25%

Indicator 1.4: Over 25,000 people trained

(via consumer education) on the uses of e-

payments and m-money services for

improved household financial management,

Number of people trained (via consumer

education) on the uses of e-payments,

New

Cumulative

272

272

8,876

9,148

7,000

12,000

0

9,148

0

9,148

--

100%

E-PESO continued to support cities under the CDI for Year 3 Quarter 1, such as Batangas City,

Cagayan de Oro City, Puerto Princesa City, Quezon City, Valenzuela City, and Zamboanga City. E-

PESO also continued to expand work on e-payment with new CDI Tagbilaran City.

Quarter 1 of Year 3 continued to see a lag in the adoption of e-payments by target businesses largely

due to their focus on holiday sales and marketing efforts during December 2016, rather than trying

new payment channels. For the rest of Year 3, however, E-PESO will increase its efforts to on-board

businesses in e-payment adoption by working with payment aggregators and small-to-medium financial

institutions (FIs) offering payroll, bills payment, and merchant payment solutions to small and medium

enterprises (SMEs) and businesses in semi-urban and rural areas.

E-PESO is on-track to train people on the uses of e-payments and mobile money (m-money) services

with more than 9,100 people already trained on the benefits and features of e-payments, as well as

the security measures required for its use.

Component 2: Infrastructure for e-Payments Expanded

Indicators Year 1

Actual

Year 2

Annual

Year 3

Annual

Target

Y3/Q1

Target for

the Quarter

Y3/Q1

Actual for

the

Quarter

Performance

Achieved for

Y3/Q1, Actual

vs. Target (%)

Desired Outcome 2: Infrastructure for E-Payments Expanded

Indicator 2.1: Growth of front-end e-

payment infrastructure expanded,

Number of institutions supported by E-PESO

to improve and/or expand their front-end

infrastructure,

New

Cumulative

10

10

8

18

10

30

0

18

1

19

100%

106%

Indicator 2.2: Back-end e-payment

infrastructure strengthened,

Number of institutions supported by E-PESO

to improve and/or expand their back-end

infrastructure,

New

Cumulative

10

10

5

15

10

30

0

15

0

15

--

100%

Indicator 2.3: E-payment infrastructure

gaps identified,


10

10

Number of gap analysis reports at

industry or ecosystem level (a),

New

Cumulative

0

0

3

3

1

3

0

3

0

3

--

100%

Notes: (a) This indicator refers to gap analysis reports done in large scale among industry players or the payments

ecosystem. This does not refer to infrastructure gap analysis done at the firm level or agency level.

* Proposed changes to target.

For Quarter 1, E-PESO continued to actively support the strengthening of front-end and back-end

infrastructures among LGU partners such as Cagayan de Oro City, Puerto Princesa City, Quezon City,

and Zamboanga City. It also assisted University of Science and Technology of Southern Philippines

(USTSP) to develop e-payment methods within their campuses.

E-PESO also supported the expansion of e-payments infrastructure among businesses by looking at

payment agents and establishing partnerships with e-payment providers such as Mynt/Globe Telecom,

Payswitch/ATVI, ECPay, and RuralNet. For example, E-PESO enabled Cagayan de Oro Electric Power

& Light Company (CEPALCO) and Cagayan de Oro Water District (COWD) to work with ECPay

and offer e-payment services through 7-Eleven convenience stores in its franchise area.

During Year 2, E-PESO completed three gap analysis reports on the e-payments landscape, state of

the Philippine agent networks, and survey on payments. For Year 3 Quarter 1, there was no scheduled

gap analysis reports as part of E-PESO’s budget rationalization for the period.

Component 3: Enabling Environment for E-payments Improved

Indicators Year 1

Actual

Year 2

Actual

Year 3

Annual

Target

Y3/Q1

Target for

the Quarter

Y3/Q1

Actual for

the

Quarter

Performance

Achieved for

Y3/Q1, Actual

vs. Target (%)

Desired Outcome 3: Enabling Environment for E-Payments Improved

Indicator 3.1: Financial regulation

refined to manage growth of e-payments,

a. No. of circulars, regulations, and/or

local ordinances refined or clarified to

support e-payment growth

New

Cumulative

b. No. of public-private dialogues to

support strengthening e-payment

environment

New

Cumulative

2

2

7

7

5

7

10

17

5

10

5

20

0

7

0

17

1

8

2

19

100%

114%

200%

112%

Indicator 3.2: Increased competition

among m-money and e-payment

platforms,

Number of policies removed or added

to reduce barriers and encourage

competition (a),

New

Cumulative

0

0

0

0

1

1

0

0

0

0

--

--

Indicator 3.3: Interoperability in the

national payment system achieved (b),

Level of Interoperability


11

11

Batch EFT

Real-time EFT

0

0

4

1

2

2

--

--

--

--

--

--

Indicator 3.4: Increased consumer

awareness and trust in e-payments(c)

,

a. % of population 15 years old and

over aware of e-payments

b. % of population 15 years old and

over that trust the e-payment (d) system

25.6%

52.0%

67.73%

61.46%

69.0%

63.0%

--

--

--

--

--

--

Indicator 3.5: Security measures in e-

payments strengthened,

No. of guidelines developed and forums

held that promote awareness on digital

security best practices or consumer

protection,

New

Cumulative

0

0

1

1

1

4

0

1

0

1

--

100%

Indicator 3.6: Global knowledge-

sharing on e-payments promoted,

a. No. of articles promoting e-

payments

New

Cumulative

b. No. of global knowledge-sharing

events that highlight the Philippines e-

payment environment/players

New

Cumulative

14

14

2

2

18

32

5

7

12

36

1

3

2

34

0

7

0

32

0

7

0%

94%

--

100%

Notes:

(a) Increased competition among m-money and e-payment platforms is a contextual indicator. This indicator refers to

the number of policies removed or added to reduce barriers and encourage competition in e-payments. In collaboration

with the BSP, targets shall be determined after identifying policies that foster competition.

(b) Interoperability in the national payment system achieved is a qualitative indicator. This tracks milestones in the

development of the NRPS. Interoperability is measured through 5 levels: 1) Theoretically interoperable; 2) Technically

interoperable; 3) Functionally interoperable; 4) Interconnected; and, 5) Effectively interconnected as explained by the

Alliance for Financial Inclusion (AFI).

(c) The reason for the significant jump from baseline to year 1 is due to different data sources. Baseline figure is derived

from the National Baseline Study on Financial Inclusion by the BSP with awareness and transparency rating on e-money

and ATMs as a proxy to awareness and trust respectively. However, yearly targets are derived from the Philippine

Household Survey on Payments that covers all types of electronic card instruments (ATM/debit cards, credit cards, pre-

paid cards, and e-money cards). The approach done by the payments study is a more reliable basis for target setting

due to slightly different method used in the baseline study by the BSP. The payments study asked more direct questions

on awareness and trust unlike the BSP financial inclusion study that uses only e-money as a proxy for awareness.

(d) For E-PESO, e-payment targets refer to electronic card instruments used for e-payments. These instruments include

credit cards, ATM/debit cards, pre-paid cards and e-money cards issued by banks and non-bank e-money issuers.

* Proposed changes to targets.

** Year 3 to LOP targets for Indicator 3.6b exceeded. Changes proposed adjusting to higher targets.

Indicator 3.1 looks at the laws, circulars, regulations, and ordinances enacted to support e-payment

growth such as the e-payments ordinance passed by the Tagbilaran City local government unit (LGU)

last November 3, 2016. Often, there are also public-private dialogues supporting efforts to introduce

such rules and regulations. During Quarter 1, E-PESO advocated for increased adoption of e-payments

during a panel discussion about payment innovations at the first Digital Congress: “The Power of X”,

which was held on October 12, 2016 and organized by the Internet and Mobile Marketing Association

of the Philippines (IMMAP). E-PESO also shared with more than 300 local government officials the role

of information and communications technology (ICT), including e-payments, in improving business


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permits and licensing systems (BPLS) in LGUs during the ICT Forum organized by the Department of

Interior and Local Government (DILG) on October 27, 2016.

Additionally, to broaden and increase competition among m-money and e-payment platforms,

Indicator 3.2 refers to the number of policies removed or added that reduce barriers and encourage

competition in e-payments. In collaboration with the BSP, policies that foster competition shall be

identified.

Indicator 3.3 (interoperability in the NRPS achieved) is a qualitative indicator. This tracks milestones

in the development of the NRPS. Interoperability is measured through five levels: 1) theoretically

interoperable; 2) technically interoperable; 3) functionally interoperable; 4) interconnected; and, 5)

effectively interconnected, as explained by the Alliance for Financial Inclusion (AFI). For Quarter 1, E-

PESO supported the BSP, the banks, and the payments industry in forming rules and policies to

establish the real-time EFT automated clearing house (ACH) and the batch EFT ACH and in setting

the agenda towards eliminating consumer barriers to adoption of upcoming e-payment instruments.

This involved the necessary step of assisting in the formation of the Payment System Management

Body (PSMB) where the rules for the payment system will be formed and managed.

Indicator 3.4 (increased consumer awareness and trust in e-payments) shows only annual targets since

the method to track the indicator is through surveys conducted by E-PESO once every two years.

Indicators 3.5 and 3.6 refer to milestones on guidelines, fora, and articles of a cross-cutting nature that

revolve around digital security, consumer protection, and knowledge sharing of best practices.

Activities related to these indicators seek to inform and support regulators, industry players, and the

general public on the latest trends on e-payments.

Component 4: E-payment ecosystem developed in key cities identified under USAID’s

CDI

Indicators Year 1

Actual

Year 2

Annual

Year 3

Annual

Target

Y3/Q1

Target for

the Quarter

Y3/Q1

Actual for

the

Quarter

Performance

Achieved for

Y3/Q1, Actual

vs. Target (%)

2.2.3 Local Government and Decentralization (a)

2.2.3-5 Number of sub-national entities

receiving USG assistance that improve their

performance

New

Cumulative

3

3

3

6

2

5

0

6

0

6

--

100%

GNDR Gender (b)

GNDR-2 Percentage of female participants in

USG-assisted programs designed to increase

access to productive economic resources

(assets, credit, income or employment)

For the year

Cumulative as of the year

85%

85%

72%

73%

50%

50%

--

--

72%

73%

--

--

PPP Public/Private Partnerships (c)

PPP3 Number of organizations (for and not-

for-profit, and government) that have applied

new technologies and/or management

practices due to USG-supported Public-

Private Partnerships (PPPs),

8

5

15

0

0%


13

13

New

Cumulative

8 13 10

30

28 13 46%

Notes:

(a) This standard ‘F’ indicator measures engagement by E-PESO of sub-national entities such as local government units.

This corresponds to custom indicator “Indicator 1.2: Adoption of m-money and e-payments in all cities of PFG CDI and

other cities/municipalities.”

(b) As part of its contract, E-PESO also measures gender impact of the Activity. This indicator measures E-PESO impact

on equitable access to productive economic resources through training and similar programs for both men and women.

(c) This indicator corresponds to the sum of government and private sector partners that have applied new technologies

or management practices as a result of E-PESO supported PPP activities. This is derived from custom indicators “Indicator

1.1: Adoption of new e-payment services as collection/disbursement option in five (5) national GPH agencies”, “Indicator

1.2: Adoption of m-money and e-payments in all cities of PFG CDI and other cities/municipalities,

Number of CDIs (and other cities/municipalities) that introduced or enhanced m-money and e-payment options”, and

“Indicator 1.3: New e-payment implementation and adoption by 500 (small, medium, and large) businesses.”

Overall, efforts by USAID E-PESO to support the adoption of e-payments have not only been far

reaching, but also cross-cutting in the areas of transparency, public-private partnership, financial

inclusion, and gender. Working with Philippine national agencies and LGUs to provide e-payment

options to citizens requires implementing clearly defined processes that promote transparent

government services from the local user level up to the national government level. It forces

practitioners to craft better policies and implement rules as part of the means to automate payment

streams.

To support such activities, technology infrastructure requirements were spelled out and led to public-

private partnerships alongside merchants and payment service providers. This allowed the private

sector to work with the government in building an e-payment ecosystem. This resulted in simplified

and more accessible financial products and payment services enabling financial inclusion and more

equitable gender access to financial services. As a result, E-PESO has already impacted two national

government agencies, six cities, and more than 9,100 trained users of whom 73% are women. This

figure does not yet include the tens of thousands of users already transacting electronically.

2.2 Implementation Status

Component 1: Rapid Adoption of E-payments in Financial Systems

Training of trainers for business permits and licensing system automation

Photo: The first batch of coaches and trainers for the BPLS automation, composed of IT specialists and


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eGovernance focal persons, from the Department of Interior and Local Government, Department of

Information and Communications Technology and Bureau of Fire Protection

Sixty-three representatives from DILG, Department of Information and Communications Technology

(DICT), and the Bureau of Fire Protection (BFP) completed the Coaches’ Training on BPLS

Automation, a key activity in the implementation of the Joint Memorandum Circular (JMC) 01 series

of 2016 and rollout of the DILG’s BPLS Automation Initiative.

The training discussed important reforms to issue business permits, the establishment of a “business

one stop shop”, streamlining efforts to conduct joint inspection teams, the integration of barangay

clearances in the BPLS process, as well as other reforms such as the process for Fire Safety and

Inspection Certificates (FSIC). The DICT discussed the minimum conditions and requirements for

automation and the status of a pilot underway in Tanay, Rizal. Additionally, the E-PESO Activity gave

a comprehensive presentation on the benefits of e-payments to LGUs and taxpayers, the regulatory

basis for e-payments, and an introduction to e-payment solutions. E-payment solutions providers, Land

Bank of the Philippines, Development Bank of the Philippines (DBP), and Mynt, were also on hand to

present their respective solutions and demonstrate user and client experiences. Training participants

included a mix of IT specialists, eGovernance focal persons, and provincial leaders who will deliver the

training to their respective regional LGUs.

Component 2: Infrastructure for E-payments Expanded

Presentation to Land Bank’s marketing team

Land Bank of the Philippines’ (LBP) Cash Management Solutions Department (CMSD) requested

USAID E-PESO and DICT to orient their marketing team on e-payments and the DICT-developed

eBPLS. The orientation session coincided with the annual planning of the CMSD marketers, on

December 14, 2016, at the Land Bank Plaza in Malate, Manila. The team members will be handling the

marketing and implementation of Land Bank’s Electronic Payment Portal (ePP). Thus, a briefer on e-

payment for government fees (nature, definition, legal and regulatory basis and framework, benefits,

P2G e-payment services currently in use, sample workflows and timelines for implementing

streamlining BPLS and setting up e-payment services) and an understanding of the eBPLS was

important.

The team verified the legal basis for e-payment collection (DOF-DTI Department Administrative

Order series of 2006 and 2010 allowing the use of Electronic Payment and Collection System) and the

basis for the validity of electronic official receipts (COA Audit Circular 07 series of 2013).

Land Bank’s presentation on the ePP and other electronic banking services will be part of DILG’s BPLS

Automation Training rollout. The training highlighted e-payments as an integral component of the

streamlining process, allowing taxpayers an end-to-end automated user experience.

Component 3: Enabling Environment for E-payments Improved Settlement Guarantee Mechanism


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In the case of e-payments with instant (or near real-time) clearing, where the payee receives the value

immediately and the payment cannot be unwound, the development of a Settlement Guarantee

Mechanism (SGM) is required to ensure that settlement does occur. The SGM will be a facility within

the BSP that will ensure that a financial institution is able to settle all of its financial obligations due to

retail payment transactions to other financial institutions. The SGM will replace the current processes

where financial institutions may bear the loss in the event that their counterparty is unable to settle

its obligations.

E-PESO submitted to the BSP a report on a recommended action plan in formulating the SGM. During

the onsite visit with the Payments Advisor, E-PESO facilitated the sessions with various BSP

departments to identify viable options and the considerations in adopting the SGM. Although some

preliminary options were identified and discussed with the BSP, further information and analysis would

be required in order to finalize the mechanism for the SGM to be adopted by the BSP with the industry

participants.

Review and Discussion of Relevant Regulations

E-PESO met with various representatives from Supervision and Examination Sector Technical Services

Staff, Anti-Money Laundering Specialist Group, and Core IT Specialist Group in order to clarify

concerns previously raised by industry participants regarding current regulations and discuss the status

of NRPS-related regulations.

NRPS Roadmap and Project Timelines

E-PESO submitted a draft NRPS Roadmap and detailed work plan to the BSP NRPS Core Team for

review and consideration. Although it was intended that the workplan would be presented to the

Monetary Board for approval, along with other NRPS-related policy directives, the presentation to

the MB was postponed to March 2017. In the meantime, the workplan will have to be revised.

Component 4: E-payment ecosystem developed in key cities identified under USAID’s

CDI

Quezon City government opens one-stop shop business registration facility

Photos: (from left) The one-stop-shop facility of the Quezon City government is promoting cashless payments

of business registration fees through ATM/debit cards and GCash m-money wallet. A business owner tries out

the e-payment kiosk.


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The Quezon City LGU’s Business Permits and Licensing Office opened a “One-Stop-Shop Business

Registration” facility streamlining the process for business owners to register their businesses and pay

fees. The facility has a business registration kiosk, which incorporates the seven different national

government requirements and provides a new option to pay the registration fees using e-payments

through BancNet debit cards or GCash m-money service – making it more efficient for businesses to

legally operate and the LGU to regulate industry and recover fees. Additional services for

entrepreneurs, such as financing (via Globe Fuse) and e-commerce solutions (via Globe myBusiness),

are also available at the one-stop-shop.

E-payments’ role in streamlining government processes highlighted in ICT Forum

Photo: USAID E-PESO’s Ecosystem and E-Payment Advisor Anatoly Gusto builds a case for wider adoption of

electronic payments in local government units at this year’s ICT Forum.

More than 300 local government officials across the Philippines gathered at the annual ICT Forum to

examine the role of ICT, including e-payments, in improving business permit and BPLS in LGUs.

Organized by DILG on October 27, 2016 in Manila, the forum reaffirmed the national government’s

thrust to enhance the local business environment by addressing bottlenecks in business registration

and processing, streamlining investment application process, and integrating services of various

government offices. Local officials were introduced to the Joint Memorandum Circular (JMC) 01 Series

of 2016, which advocates for new reforms, standards, and mechanisms in the automation and

computerization of business permit application processes such as online portals and systems,

electronic mail of tax order of payments, e-payments through banks, and online issuance of business

permits. In a presentation, E-PESO highlighted the essential role of e-payments in implementing BPLS

streamlining and cited the national regulations and policies, enabling mechanisms, and requirements

for LGUs to adopt electronic payments for government fees.

Quezon City receives the eGov Awards’ first ever Digital Finance Award


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Photo: The award for Quezon City was accepted by (starting from second to the left) Fredie Abella of the

Communications Coordination Center, Anna Marie Jamilaren of the Business Permits and Licensing Office and Joem

Salazar of the Information Technology Development Office.

Quezon City’s end-to-end electronic services system was awarded the eGov Digital Finance Award during

the 8th ICT National Summit on November 10-11, 2016 in Palo and Tacloban in Leyte. The annual summit

recognizes LGU best practices in utilizing ICT to deliver effective and efficient public services. The first ever

Digital Finance Award was created to encourage more LGUs to develop e-finance and e-payments systems.

The city’s electronic services system covers all aspects of paying local taxes including assessment, payment,

and an official electronic receipt. A first for a Philippine local government, Quezon City’s innovative system

enables anytime, anywhere tax-paying convenience to the city’s real property and business taxpayers.

USAID E-PESO is supporting the Quezon City government in enhancing its e-payments system.

Puerto Princesa City launches e-payment services


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Photo: Puerto Princesa City Mayor Lucilo Rodriguez (from center) and LandBank Assistant Vice President and

Head of Southwest Luzon Branches Group Ma. Cielito Valdivia sign the partnership documents. Looking on

are (standing from left) USAID E-PESO Chief of Party Mert Tangonan, USAID/Philippines Office of Economic

Development and Governance Director Jeffrey Lehrer and Land Bank of the Philippines Branch Head Joey

Rodriguez.

The Puerto Princesa City government declared its commitment to enable the use of e-payment

systems on November 8, 2016 by entering into a partnership with the Land Bank during the

MIMAROPA Investment Conference, held in Puerto Princesa. The signed agreement states that the

city government will use Land Bank’s digital financial services (such as cash card facilities) for the city

government’s payroll, incentives, and other payments to its Job Order employees and project

beneficiaries. It will also offer an online payment option for local taxes and business permits through

Land Bank’s ePP. USAID’s E-PESO facilitated the partnership between the Puerto Princesa City

Government and Land Bank.

Tagbilaran City passes ordinance establishing use of e-payments

The City Council of the local government of Tagbilaran City passed an ordinance that established an

e-payment system for financial transactions within the city government on November 3, 2016. The

ordinance supports the city’s push for Electronic Governance (eGovernance) that will bring about

greater transparency and operational efficiency, and enhance its tax and payment collection. E-PESO

is assisting the city government in integrating e-payments to support its efforts to streamline and

automate tax collection services, including those for business permits and real property taxes. E-PESO

is also facilitating partnerships between the Tagbilaran City Government and financial service providers

for disbursements and other payments such as Development Bank of the Philippines and Land Bank.


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Photos: Electronic copy of the signed city ordinance.

Tagbilaran City holds 1st E-PESO Technical Working Group meeting for e-payment expansion

Photo: USAID E-PESO E-Payment Ecosystem Advisor Jing Gusto facilitates the discussion of the technical

working group as they plan next steps for Tagbilaran City’s priority e-payment initiatives.

In November 2016, USAID E-PESO facilitated efforts to draft and sign an executive order, "Electronic

Payment Systems Ordinance of the City of Tagbilaran" authorizing the use of e-payments for taxes,

fees and other payments to the city. Included in the executive order was the requirement to create

a technical working group, which would lead and monitor the city’s implementation of the executive

order.


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As a result, Tagbilaran City Mayor John Geesnell Yap joined other officers for an E-PESO-facilitated

technical working group kick-off meeting to expand the city’s e-payment solution. Presently, all regular

Tagbilaran city administrative employees are paid electronically (accessible through an ATM card).

However, approximately 500 contractual employees are still paid in cash. The technical working group

plans to update the payroll of contractual workers using prepaid debit cards. The two government

banks, Land Bank of the Philippines and Development Bank of the Philippines were invited to present

their respective e-payment products and services to the group and also clarified some details regarding

their fees, payment reconciliation and settlement, regulatory compliance and reporting. The City is

interested to work with both banks to provide taxpayers with as many payment options as possible.

Pulilan prepares to expand e-payments

Photo: Pulilan Mayor Maritz Ochoa-Montejo (far left) discusses plans to expand electronic payment services

with representatives from the Department of Information and Communication Technology, USAID E-PESO

and private sector partners Globe Telecom and Mynt.

Representatives from the DICT, USAID E-PESO and private sector partners, Globe Telecom and

Mynt, met with Pulilan (Bulacan) Mayor, Maritz Ochoa-Montejo on December 1, 2016 to discuss ways

to expand the municipality’s e-payment services. The municipality has invested in technology solutions

to improve the delivery of government services and is now interested to introduce a citizen’s identity

card to more effectively manage local government services, including local tax payments. The ID

system is a first step towards introducing e-payments more broadly in the municipality. Mayor Ochoa-

Montejo also expressed the need for improved broadband infrastructure and access in Pulilan, which

will likewise facilitate adoption of e-payments services.

Cagayan de Oro City promotes e-payments

The Cagayan de Oro City Information Office (CIO) has started the information dissemination of the

new online payment service through the Mayor's weekly TV and radio shows. Chief Technology

Officer Leonil Mistula was a guest on the shows and explained how to use the latest innovations in

tax collection by the LGU. The CIO also developed flyers for distribution starting December 2016.


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In addition, the City Council passed an ordinance authorizing City Mayor Oscar Moreno to begin using

the Development Bank of the Philippines’ payment services. This will accelerate the city’s initiative to

use Visa and BancNet payments online.

2.3 Implementation Challenges

Component 1: Rapid Adoption of E-Payments in Financial Systems

Some prospective partner national government agencies face budgetary constraints to implementing

processes that include e-payments. Such is the case with the BFP, as they face lack of funding for their

IT department, which prevents them from participating in the eBPLS or including e-payments in the

process.

Online merchants face quite a few other challenges in growing their e-payment acceptance. While

internet-based merchants are typically good starting points for accepting e-payments, some are

convinced that their market still prefers cash; and hence, these online resellers are forced to accept

cash. Lazada Philippines, for instance, an internet-based retailer that controls 85% of the e-commerce

retail market, has shared that 85% of their sales is still done through cash-on-delivery. They have cited

several reasons for this:

There are still very few credit card holders, making them a very small target market for online

retailers.

ATM debit cards present challenges for online purchase, as a majority cannot make online

purchases.

There is no perceived convenience derived from other forms of e-payment from the viewpoint

of the user. M-money, prepaid cards, and other forms of e-money that require a cash-in still

involves a cash payment. The added layer of cashing-in just adds an inconvenience to the user

without really eliminating the use of cash.

Online resellers face difficulty in getting the necessary permits for e-invoices, e-receipts, and

e-withholding tax certificates. Lazada submitted their application to Bureau of Internal

Revenue (BIR) for issuing e-receipts two years ago and has not yet received the approval.

Customers still find the cash-on-delivery mode the safest and most hassle-free arrangement.

If the item delivered is not satisfactory, they can simply refuse to pay. They do not have to go

through the process of requesting a refund or reversal had they settled through e-payment.

Merchants also face a high merchant discount rate from credit card acquirers for online

transactions. Cash payments do not entail cash flow issues unlike credit card collections which

have settlement schedules to follow.

In addition, some enterprises, such as electric cooperatives, do not find strong business incentives to

modernize their IT capabilities in general, and e-payments in particular. For them, the cost-benefit

advantage of automating their processes is unclear. This is a consistent behavior among monopolies

where cost reduction and customer service quality may not be among the top priorities as their costs

may be passed onto consumers who cannot select another service provider as they do not exist.

However, utility companies are among the best opportunities for encouraging e-payment adoption by

consumers because their services are regular, non-discretionary needs.

Finally, some government policies discourage adoption of e-payments by government agencies due to

the following:


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Monopoly of government banks over government depository accounts. Currently, government

agencies are constrained to deposit their funds to Authorized Government Depository Banks

(AGDB), which are principally Land Bank and Development Bank of the Philippines. However,

these banks have limited e-payment services to enable the government agency’s collection

through e-payment instruments, such as credit/debit card payments online or via a POS.

Unwillingness to pay e-payment collection fees. Standard market practice is for Electronic

Payments Service Providers (EPSPs) to charge fees known as merchant discount rates (MDR)

to the biller for e-payments. Currently, the government is unwilling to bear such fees and

passes these “convenience” fees onto the payers, which discourages payers from adopting e-

payments. It also increases the complexity of settlement between the EPSP and the

government agency thereby limiting EPSPs to large players such as the big banks and telcos.

Fire Code mandating BFP to collect FSIC. FSIC, which totals 10% of the business permit fee, is a

pre-requisite for LGUs to issue business permits and it is common practice for the BFP to

collect the FSIC fee separately from the LGUs’ business permit fee. While an increasing

number of LGUs are already accepting e-payments for business permit fees, payers are

discouraged to use it since they still need to go to the city/municipal hall to pay the FSIC fee.

Component 2: Infrastructure for E-payments Expanded

One of the key challenges in e-payment adoption for government and businesses has been the lack of

automated back-end systems that can readily integrate with e-payment platforms. Other challenges to

infrastructure expansion in e-payments include poor connectivity, relatively high-cost of transaction

devices, and inadequate back-end systems to accept and track payment transactions. Nevertheless,

working with channel managers of agent networks and enabling them with mobile phones and mobile

point of service (POS) devices can expand the reach of e-payments to more areas of the Philippines

previously unreached or under-reached.

Following the Philippine Agent Network Assessment study, E-PESO also noted the following challenges

for non-bank electronic money issuer agents:

Awareness, adoption, and usage of non-bank e-money remains limited. Only 25.6% of the

population is aware of e-money agents; and out of those aware, only 26.7% have actually used

them.

While service providers target both urban and rural clients, access points are largely located

near pre-existing financial access points such as banks, ATMs, and pawnshops thus limiting

impact.

Non-bank e-money issuers face competition from remittance service providers, payment

aggregators, etc. offering a similar set of products and services. They have been unable to

develop and communicate an effective value proposition that differentiates them from other

service providers.

Agents report inadequate support of field level operations. Service providers could benefit

from more robust systems of field management, monitoring and supervision, and liquidity

management. However, non-bank EMIs are developing systems to address field management

issues in a more proactive way.

Lastly, distribution models for digital financial services include having institutional partnerships, cash-

in cash-out agents, unmanned networks such as ATMs, and existing infrastructure of banks and financial

channels such as POS devices. However, the level of financial services access is low in the Philippines


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with only 75.37 access points per 100,000 adults, compared to more than 180 for Pakistan and more

than 400 for Tanzania and Uganda.1

As a result, e-money has not expanded beyond urban or peri-urban areas with existing infrastructure

due to no significant differences in terms of time and cost savings. However, there are encouraging

developments on the expansion of distribution networks such as consolidation among ATM switches,

move towards back-end interoperability among banks, and renewed focus on field management by e-

money issuers that promise improved access.

Component 3: Enabling Environment for E-payments Improved

One of the major challenges under this component has been that internal BSP resources are

constrained. The BSP has had only one full-time member of the NRPS Core Team who manages the

project, while the rest of the team members have been sourced from other units and hence cannot

devote their full-time to the NRPS. During Quarter 1, the BSP finally addressed this issue by allocating

additional two (2) full-time staff and available resources to specific outputs and programs for maximum

impact for the rest of Year 3.

Also, in building the NRPS, despite various dialogues, discussions, and presentations to industry

participants, there is an impression among private sector players that NRPS still refers to the

infrastructure of the system. As result, there remain misunderstandings on the nature and purpose of

the NRPS. This was addressed by the BSP through additional in depth discussion between the BSP

NRPS Core Team and the Bankers Association of the Philippines (BAP).

In further discussions with other stakeholders, the following concerns were also identified:

Commercial banks continue to be protective of their current business models and practices. These

were manifested in the issues and concerns raised with the BSP during dialogues particularly on

areas pertaining to prospective policies to be formalized by the BSP on the payments (i.e

beneficiary receives full amount of funds transfers / remittances; swift turnaround time of crediting

transactions to the beneficiary);

There is limited appreciation on the scope of the proper governance that BSP is asking the

payments industry to establish. BSP wants to ensure that there is a common body that will establish

the rules for access and clearing but financial institutions can continue to compete with each other

on the basis of their markets and products. For the commercial banks, they would prefer that

governance of the payment systems continue to be bundled with the ownership of clearing switch

operators (instead of segregating the functions as prescribed by the BSP). This position was

expressed by recommendations to the BSP on alternative governance models to consider. For the

thrift and rural banks however, they are very emphatic on wanting to have more seats in the PSMB

Board despite very limited clearing volume contribution.

Given these issues and concerns, particularly on setting up the PSMB, the BSP decided to shift its

strategy by prioritizing the formation of the Batch EFT and real-time low value credit push ACH

agreements. The establishment of these ACHs will help the BSP in encouraging government agencies

to use electronic payments as a viable and preferred option for disbursements and collections.

The NRPS team has encountered difficulties providing recommendations on identified policies and

circulars due to a lack of legal basis, thus delaying development or approval of such policies or circulars.

1 Philippine Agent Network Assessment Study, 2016.


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Until the National Payment Systems Act has been passed by the Philippine Congress, BSP has limited

legal basis. However, E-PESO continues to assist the BSP in identifying the necessary regulations and

giving inputs for consideration. Most of the identified policies or circulars that need to be issued should

be consistent with NRPS principles and objectives. However, this affects multiple units, departments

and/or groups within the BSP, thus necessitating more consultations and review with these units, which

in turn contributes to the overall lengthening of turnaround time for circular issuance.

Lastly, on government disbursements, current BSP discussion partners at the Department of Budget

and Management (DBM) and Department of Finance (DOF) expressed concerns over the principle

that the sender or payer must shoulder the cost for the e-payment. Such principle is in conflict with

the current disbursement practice that any related costs are passed on to the beneficiary.

Component 4: E-Payment ecosystem developed in key cities identified under USAID’s

CDI

LGU partners with e-money collection services for government fees all report low usage and adoption

rates. Consultation with the respective LGU teams point to lack of awareness of existing e-payment

options among end users.

The seasonal nature of government transactions is another factor contributing to the slow adoption

of existing e-payment options. Field visits revealed that payment of local taxes or permits do not occur

frequently within a year, thus making it difficult to nurture familiarity and confidence in the payment

channels. LGUs may be influential and have the power to convene others to use e-payment services;

however, when the services remain unused by the broader payment ecosystem (i.e., the private sector

and businesses, utility companies, etc.) uptake and usage of e-payment options for infrequent LGU

collections will most likely be limited. Payments for local government taxes and fees are expected to

ramp up only from January to March of each year.

Another challenge is lack of digital payment readiness of other national agencies/offices that have

functions and responsibilities devolved to LGUs. For example, collaboration needs to be pursued with

the BFP, which separately collects fees and issues official receipts for those paying local business

permits.

While local government services play an important role in supporting e-payment ecosystems in cities

and municipalities, the main engine for driving e-payment adoption still rest with broader “strategic

alliances” within the community. In this regard, E-PESO, while supporting LGUs to set up e-payment

services, is now targeting the local private sector and utility services with high frequency payments to

promote the adoption of e-payment and collection for various types of more regular financial

transactions.

For new partner CDI cities, many factors can affect the degree of success of e-payment adoption and

implementation. Each LGU faces unique challenges, which can involve the presence of poor

infrastructure, lack of coordination, and policies that hinder e-payments adoption. Therefore, the

following are some key learnings for successful CDI engagement:

Multi-level Organizational Commitment. The initiative for e-payment adoption is a trailblazing effort

in an LGU. This often involves the Mayor as a champion supported by the City Council. The Mayor

and LGU ensure that this process is endorsed to the Administrator/Chief of Staff, and

implemented by a committed project team composed of key LGU departments (IT, Treasurer,


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Assessor, and the Business Permit Licensing Officer - BPLO). Working together, this becomes a

driving force for positive change within the LGU and a testament to innovation in public services.

Hardware and System Upgrade. LGUs need to invest in hardware facilities and system upgrades to

avoid downtimes, improve performance, stability, and security of applications. Reliable hardware

and software facilities are prerequisites for e-payment portals to connect with the LGU.

Preparatory Agreements and Testing. Delays in implementation occur due to prolonged forging of

agreements and extended user experience testing phase. This back and forth of the document

requirements and MOU's lengthen the launch of the activity. Therefore, use of generic templates

for agreements and orientation of key LGU personnel need to be done early to expedite the initial

process of LGU onboarding.

2.4 PMP Update

During Quarter 1, E-PESO continued to discuss with USAID proposed changes to the M&E Plan,

particularly the targets for the Activity as detailed below in light of reduced budget allocations:

Indicators Year 1

Actual

Year 2

Actual

Year 3

Target

Current LOP

Target

Proposed New LOP

Target

Indicator DP 1: E-payments

accounting for at least 20% of all retail

payment transactions,

Percent of e-payments accounting for

retail payment transactions

1.03% 2.76% 3.42% 20.0% 8.14%

Indicator 1.2: Adoption of m-money and

e-payments in all cities of PFG CDI and

other cities/municipalities,

Number of CDIs (and other

cities/municipalities) that introduced or

enhanced m-money and e-payment

options,

New

Cumulative

3 3

3 6

4 10

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Indicator 1.3: New e-payment

implementation and adoption by 500

(small, medium, and large) businesses,

Number of businesses introducing or

enhancing e-payment options as a result

of E-PESO support,

New

Cumulative

4 4

1 5

95 100

500

300

Indicator 1.4: Over 25,000 people

trained (via consumer education) on the

uses of e-payments and m-money

services for improved household financial

management,

Number of people trained (via consumer

education) on the uses of e-payments,

New

Cumulative

272 272

8,876 9,148

2,852 12,000

20,000

16,000

Desired Outcome 2: Infrastructure for E-Payments Expanded


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Indicator 2.1: Growth of front-end e-

payment infrastructure expanded,

Number of institutions supported by E-

PESO to improve and/or expand their

front-end infrastructure,

New

Cumulative

10 10

8 18

5 23

50

30

Indicator 2.2: Back-end e-payment

infrastructure strengthened,

Number of institutions supported by E-

PESO to improve and/or expand their

back-end infrastructure,

New

Cumulative

10 10

5 15

5 20

50

30

Indicator 3.1: Financial regulation refined

to manage growth of e-payments,

a. No. of circulars, regulations, and/or

local ordinances refined or clarified to

support e-payment growth

New

Cumulative

2 2

5 7

3 10

30

13

With funding cuts, E-PESO will not be able to conduct full market research/assessment for Year 3,

interventions with some private sector partners will be foregone, and product development by many

financial institutions may be delayed. With reduced funding, E-PESO cannot:

1. Fully staff and undertake necessary trips;

2. Hire most consultants;

3. Provide the same level of commodity support to partners; and,

4. Sponsor study visits to hasten policy reforms.

This has a domino effect on LOP targets. For example, Indicator 1.3 is reduced to 300 due to significant

reduction in budget affecting support activities to address the indicator. These activities require a level

of scale that are cost intensive due to manpower and material support, thus translating to:

1. Significantly reduced trips outside of Metro Manila;

2. Removal of marketing support budget for partners, limiting interventions to technical

assistance; and,

3. Hiring freeze of additional regional personnel as area coordinators.

However, the following indicators are being considered for Year 3 due to better policy clarity from

the BSP and other government partners and after discussions with the Mission:

Indicators Year 1

Actual

Year 2

Actual

Year 3

Target

Current LOP

Target

Proposed New LOP

Target

Desired Outcome 3: Enabling Environment for E-Payments Improved Indicator 3.2: Increased competition

among m-money and e-payment

platforms,

Number of policies removed or added to

reduce barriers and encourage

competition, (a)

0

0

1


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New

Cumulative 0 0 1 5 5

Indicator 3.3: Interoperability in the

national payment system achieved, (b)

Level of Interoperability

Batch EFT

Real Time EFT (InstaPay)

0 0

4 1

2 1

4 4

4 4

Notes:

(a) Increased competition among m-money and e-payment platforms is a contextual indicator. This refers to the number

of policies removed or added to reduce barriers and encourage competition in e-payments. In collaboration with the

BSP, targets shall be determined after identifying policies that foster competition or reduce barriers to competition.

(b) Interoperability in the national payment system achieved is an indicator based on qualitative research. This tracks

milestones in the development of the NRPS as measured through 5 levels: 1) Theoretically interoperable; 2) Technically

interoperable; 3) Functionally interoperable; 4) Interconnected; and, 5) Effectively interconnected as explained by the

Alliance for Financial Inclusion (AFI). By Year 3, interoperability scores shall be disaggregated by use case to track

various e-payment modes.

In addition to the above custom indicators, E-PESO continues to track the standard indicators

below, including two new ones, for reporting and linking to the overall Country Development

Cooperation Strategy (CDCS) of the Mission and to overall development efforts of the USG.

Standard Indicators Year 2

Actual

Year 3

Target LOP Target

GNDR Gender

GNDR-2 Percentage of female participants in USG-assisted

programs designed to increase access to productive

economic resources (assets, credit, income or

employment)

For the year

Cumulative as of the year

72% 73%

50% 50%

50% PPP Public/Private Partnerships

PPP3 Number of organizations (for and not-for-profit, and

government) that have applied new technologies and/or

management practices due to USG-supported Public-

Private Partnerships (PPPs),

New

Cumulative

9 13

7 20

30

More so, the Mission has requested additional new standard indicators to be added beginning

October 2016, which are listed below.

Standard Indicators Year 3

Target LOP Target

EG.4.2-1

Total number of clients benefiting from financial services

provided through USG-assisted financial intermediaries,

including non-financial institutions or actors (a)

New

Cumulative

2,852 12,000

16,000


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EG.4.2-2

Number of financial intermediaries serving poor

households and microenterprises supported by USG

assistance (b)

New

Cumulative

1 2

5

Notes:

(a) Derived from number of people trained (via consumer education) on the uses of e-payments

(b) Direct count of financial intermediaries including banks, microfinance institutions, and cooperatives

In terms of submissions and pending items, E-PESO completed and submitted the final drafts and

datasets of the following to USAID during Quarter 1:

a. Year 3 Work Plan;

b. Year 2 Annual Report;

c. USAID E-PESO Policy Matrix;

d. Open Data compliance (ADS 579).

In order to comply with ADS 579, E-PESO submitted raw data of the completed individual payments

baseline survey to the COR for approval. After approval, E-PESO submitted the data sets to the USAID

Development Data Library (DDL) through the USAID Open Data team in December 2016.

Additionally, the following items previously communicated and submitted to USAID are for approval

or comment:

a. MOAs/MOUs

E-PESO is following through with USAID on pending Memorandum of Agreement (MOA) or

MOU documents with private sector partners. Once completed, these serve as references

for anticipated data quality assessments (DQA) or audits.

b. M&E Plan

As discussed with the COR, E-PESO submitted recommendations to USAID for revisions to

targets of indicators so the M&E Plan can be revised accordingly.

Lastly, upon the request of Bankable Frontier Associates (BFA), E-PESO socialized the RegTech for

Regulators Accelerator (R2A) program to the broader financial technology community in the

Philippines. R2A partners with leading financial sector regulators and innovators to pioneer the next

generation of digital supervision tools and techniques. A short list of identified financial technology

players was submitted to BFA on December 23, 2016. The R2A program is funded by the Bill & Melinda

Gates Foundation, Omidyar Network, and USAID and implemented by BFA and Rockefeller

Philanthropy Advisers.


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3. INTEGRATION OF CROSSCUTTING ISSUES AND

USAID FORWARD PRIORITIES

3.1 Gender Equality and Female Empowerment

During Quarter 1, E-PESO continued to maintain a respectable percentage of women trained to

increase access to productive economic resources such that 73% of those cumulatively trained by the

Activity are women. This high percentage is due to the fact that many of the cooperative members

are women entrepreneurs.

GNDR Gender

GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to

productive economic resources (assets, credit, income or employment)

As of December 31, 2016 Male Female Total % Male % Female

Cumulative 2,495 6,653 9,148 27% 73%

3.2 Policy and Governance Support

E-PESO activities in the payments industry have been challenging due to behavioral biases and

inefficient market practices built in the Philippines through the decades. However, E-PESO’s work on

helping the GPH shift its payments streams to e-payments has been boosted by more supportive

bureaucrats, faster project implementation, and quicker issuance of needed policy changes.

E-payments highlighted in Mindanao Development Authority briefing

Undersecretary and Executive Director of the Mindanao Development Authority (MinDA) Janet

Lopoz led a briefing on December 8, 2016 at SMX Lanang in Davao City for various government,

development and private sector partners including USAID’s E-PESO Activity. She emphasized the

national administration’s strategy to support the growth of the next wave of highly urbanized cities in

Mindanao - through the Mindanao Development Corridors. These corridors are transportation and

logistics channels that spur economic development and are supplemented with education and health

initiatives. Undersecretary Lopoz sought the assistance of USAID’s E-PESO Activity to expanding

electronic payment services in Western Mindanao. E-PESO is currently engaged with Zamboanga City

LGU to promote e-payments. The city is Western Mindanao’s economic, educational, and political

center.

Support for BSP

With emerging banking industry support for the NRPS, E-PESO continues to assist the BSP in

organizing public-private dialogues and helping the BSP’s NRPS technical working group tasked with

developing the rationale, framework, and policies supporting e-payments in the Philippines. The BSP

has completed its NRPS Roadmap, which targets the signing of an MOU with industry participants to

organize the PSMB and the signing of an MOA with the PSMB by 2017.

While the PSMB is being organized, the BSP has decided to oversee and regulate industry actions,

particularly the formation of prioritized ACH agreements, including InstaPHay (real-time low value

credit EFT) and batch EFT credit. In the case of InstaPHay ACH, the BSP has conducted working group


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30

sessions to initiate discussions on the formulation of rules. In the case of batch EFT credit ACH, the

BSP has consulted with Philippine Clearing House Corporation (PCHC), the current clearing service

operator for batch EFT, as inputs to the expected transition of the current agreements to an ACH

agreement consistent with NRPS principles. To support the settlement risk management for retail

payments, the BSP has also initiated the development of a security guarantee mechanism, a facility

within BSP to ensure that a participant’s obligations are settled with certainty and finality.

In terms of policy, the BSP has identified several regulations to address issues hindering e-payments.

Currently, a circular that stipulates the beneficiary of a credit transfer receives the full amount, is

scheduled for Monetary Board approval. Other regulations identified, and to be incorporated in

regulation updates to be issued in new circulars include: immediate or same day credit to beneficiaries

of fund transfers; interbank fund transfers should be made available in all electronic channels; BSP’s

recognition of the PSMB as a self-governing body (after the signing of the MOA with the PSMB); and

instructions to transition the current arrangements for batch EFT into ACH agreements. The BSP has

met with top officers and senior executives of various industry participants to further clarify the NRPS

and BSP’s expected actions from the industry.

Support to BIR

E-PESO has been providing technical assistance to the BIR in implementing e-payment options for tax

collection, including assistance on the implementation of mobile and online payment channels to

promote transparency, accountability and efficiency in tax collection. On the part of taxpayers, e-

payment is more convenient, secure, and less costly as compared to over-the-counter payments. As

a result, apart from GCash of Globe Telecom, E-PESO and BIR are working with PayMaya (formerly

Smart E-Money, Inc.), the other major m-money provider in the country, to expand mobile tax

payment services.

3.3 Public Private Partnerships

Besides individual agencies of government and the private sector, USAID E-PESO is building an e-

payments advocacy campaign together with industry associations and national government agencies

with the launch of an online community and industry resource portal (www.ePayPilipinas.com) to

advocate for greater adoption of e-payments in the Philippines. During Quarter 1, E-PESO continued

this advocacy by participating in public fora.

Photo: USAID E-PESO Activity’s Digital Infrastructure and Interoperability Advisor, Vicente Catudio (second

from left) shares the initiatives of the E-PESO Activity to work with partners and promote electronic

payments on a panel focusing on payment innovations at the Digital Congress: “The Power of X” conference.

E-payments initiatives highlighted at Digital Congress

http://www.epaypilipinas.com/


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E-PESO advocated for increased adoption of e-payments during a panel discussion about payment

innovations at the first Digital Congress: “The Power of X”, which was held on October 12, 2016 by

the Internet and Mobile Marketing Association of the Philippines. Other speakers included local

financial technology (fintech) players such as Abra, DragonPay, OmniPay, Payoneer, Paynamics and

Mynt and the commercial bank Unionbank, who jointly discussed their respective initiatives to

promote e-payments in the Philippines. They also discussed challenges to wider adoption, including:

(1) that e-commerce customers overwhelmingly prefer to pay cash-on-delivery; (2) there is a low

number of credit card users in the Philippines; (3) many ATM/debit cards are not enabled for online

transactions; and (4) the common practice of buying load for m-money “e-wallets” with cash instead

of electronic fund sources. Panelists also observed that micro, small, and medium enterprises (MSMEs)

are not likely to adopt e-payments because the costs to them are prohibitive, ranging from 3 to 4

percent per transaction, and a settlement turnaround time of several days. This constricts MSME

operations, which need to recover payments much faster due to their limited working capital. Poor

internet connectivity in the Philippines also prevents reliable acceptance of digital payments or engage

in e-commerce.

Financial inclusion initiatives highlighted at 11th Philippine Forum

The Philippine government’s efforts to advance financial inclusion and inclusive growth were

highlighted at the 11th Philippine Forum on November 8, 2016 in Davao City. USAID E-PESO

showcased the role of e-payments in increasing financial inclusion during a panel session on “Financial

Inclusion: from dream to reality,” along with speakers from Oxfam and Rural Bankers Association of

the Philippines. The panel discussed e-payment adoption in USAID E-PESO’s partner cities, including

Quezon City and Cagayan de Oro City, and common barriers to accessing financial products and

services. The forum convened participants from local and regional financial institutions to listen and

interact with key government officials and private sector partners.


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Photo: The 11th Philippine Forum, held for the first time in Davao City, was well attended by representatives

from various sectors.

4. STAKEHOLDER PARTICIPATION AND

INVOLVEMENT

Demonstrating the increasing acceptance on the advantages and benefits of e-payments, E-PESO

witnessed active stakeholder participation and involvement in its activities in Quarter 1. One highlight

is the Quezon City Local Government’s Business Permits and Licensing Office, which opened a “One-

Stop-Shop Business Registration” facility that streamlines the process for business owners to register

their businesses and payment fees. The facility has a business registration kiosk that incorporates seven

different national government requirements and provides a new option to pay the registration fees

with electronic payments using (BancNet) debit cards or (GCash) m-money service – making it more

efficient for businesses to legally operate and the local government to regulate businesses and recover

fees. Additional services for entrepreneurs such as financing (via Globe Fuse) and e-commerce

solutions (via Globe myBusiness) are available at the one-stop-shop.


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5. MANAGEMENT AND ADMINISTRATIVE ISSUES

A comprehensive review of the E-PESO Activity’s Year 3 work plan was conducted to align the

implementation schedule with an anticipated reduction in funding for the 2017 fiscal year. While annual

funding was pending, E-PESO’s implementation was managed by carrying out cost-efficient activities

mainly in Metro Manila, to control spending. This allowed E-PESO to manage Quarter 1 activities

starting from a small surplus of funds, saved from cost efficiencies realized in Year 2. It also facilitated

the continuation of critical NRPS and CDI technical work while Year 3 funding obligation was delayed.

Based on the likelihood that E-PESO will experience an additional funding reduction of 15-20 percent

from Year 2, the Activity delayed the hiring of six long-term staff, and thus has already taken steps to

mitigate functional gaps on the team. Component 2 Team Leader, Vicente Catudio resigned in

December 2016; and through technical prioritization discussions with USAID, it was decided to

postpone hiring his replacement.

On the other hand, E-PESO’s VAT exemption certificate (VEC) expired on December 17, 2016 and

the project was still awaiting a new VEC by the end of the quarter. In December, the Activity took

the initial steps to decrease the size of its project office space to match the scale of staffing levels, and

sought financial estimates from architectural contractors to do related renovations.

6. LESSONS LEARNED

In various events, E-PESO not only shared lessons, it also learned from fellow practitioners. This

allowed participants to leverage their experiences and for E-PESO to understand the challenges faced

in the field for e-payment adoption.

IMMAP Summit – Digital Congress 2016: The Power of X

E-PESO participated as one of the panelists/speakers for the Payment Innovations track at the Internet

and IMMAP’s first digital congress called The Power of X on October 12, 2016. The panel included

fintech players like Abra, DragonPay, OmniPay, Payoneer, Paynamics and Mynt. The discussion

centered on the different initiatives of the panelists to promote el-payments in the country, the

challenges posed by consumers’ preference for cash payment (cash-on-delivery) for e-commerce

transactions and the barriers to adoption of electronic payments by MSMEs.

Following are the key highlights from the panel discussion:

E-commerce customers prefer to pay cash on delivery (about 80% of e-commerce transactions)

due to its convenience of not having to go through the refund process in case they don’t accept

the goods. Only very few people have credit cards (about 2%-3% of population) and that debit

cards (local card brand) largely do not work today in a number of online transactions. Using m-

money is also inconvenient since customers will have to cash-in first before they can pay. Inter-

bank EFT (from a bank account) is also not offered by banks and moving funds from one bank to

another bank is costly and/or inconvenient.

MSMEs are not likely to adopt e-payments in their businesses for payment collection purposes.

Merchant discount rates are high (or monthly POS rental if minimum transaction volume is not


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met) ranging from 3% to 4% (in some cases as high as 5%) for online transactions. In addition,

settlement turnaround time of T+1 or T+2 is not suited for MSMEs since their turnover is almost

daily given limited working capital. Lastly, MSMEs have connectivity issues given the poor internet

infrastructure in the country, thus limiting their ability to do e-commerce and accept e-payments.

DILG ICT Forum

Highlights from the ICT Forum include:

In a report of the National Competitiveness Council (NCC) on the competitiveness ratings of the

Philippines in the annual Ease of Doing Business Report released by World Bank-IFC, the Philippines

moved up four positions from No.103 last year to No. 99 this year. The report compares business

regulations and processes in 190 economies around the world and measures 10 basic steps involved

in a typical life cycle of a business enterprise.

Of the 10 indicators measured in the report, the Philippines improved in areas such as Protecting

Minority Investors (up 18 from No. 155 to No. 137), Dealing with Construction Permits (up 14

from no. 99 to No. 85), Paying Taxes and Social Services (up 11 from No. 126 to No. 115), and

Enforcing Contracts in court (up 4 from No. 140 to No. 136). These are not significantly large

improvements, but they are nonetheless movements in the right direction.

On the other hand, there was a drop in four indicators: Getting Credit (from No. 109 to No.

118), Starting a Business (from No. 165 to No. 171), Getting Electricity (from No. 19 to No. 22),

and Resolving Insolvency (from No. 53 to No. 56)

Recommendations put forward during the forum included: 1) continue to streamline and simplify

processes, 2) legislate amendments to some existing laws and to create new laws to support ease of

doing business, and 3) take more government procedures online.

In relation to the third recommendation, DICT’s presentation dwelt on its e-BPLS, a DICT-developed

online application that allows LGUs to process business applications electronically. Apart from

discussing the technical features of the system, DICT also shared their partnership with fintech

company Mynt and authorized government depository banks Land Bank of the Philippines and

Development Bank of the Philippines to integrate e-payments facility into eBPLS.

It was also shared that 53 LGUs signified their commitment to enroll in BPLS automation under the

DILG-DICT-DTI JMC 01. The LGUs committed to organize technical working groups to oversee the

implementation of BPLS streamlining, participate in reform activities organized by the three

departments, prepare and implement requisite local ordinances, provide hardware to facilitate

automation, equip their staff with the necessary skills through training and orientation, develop

databases on BPLS-generated data, and comply with e-BPLS readiness requirements. E-PESO is now

working with nine of these LGUs that are part of the CDI.

BPLS Streamlining/LGU P4 Code Yearend Debriefing

The DILG’s Bureau of Local Government Development (BLGD) convened partners for a year-end

debriefing on BPLS streamlining and the Public-Private Partnership for the People Initiative for Local


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Governments2 (LGU P4) initiatives. The debriefing was held on December 19, 2016 at the DILG

NAPOLCOM Center in Quezon City.

BPLS streamlining is in line with the government’s drive to improve competitiveness and ease of doing

business, as outlined in Joint Memorandum Circular (JMC) 01 Series of 2016. JMC 01, jointly issued by

DILG, DTI, and DICT, which introduces new reforms, standards, and mechanisms and advocates for

automation and computerization of business permit application processes such as online portals and

systems, electronic mail of tax order of payments, e-payments through banks, and online issuance of

business permits.

During the debriefing, BLGD presented the roadmap for 2017 and announced that the BPLS

Automation Initiative has an allocated PHP15 million budget. Major activities include:

• BPLS automation policy development;

• Coaching and mentoring on BPLS automation to 145 municipalities/cities; and,

• On-line Help Desk on BPLS automation set-up.

USAID E-PESO was invited to be part of the BPLS Automation Technical Working Group, along with

the Union of Local Authorities of the Philippines (ULAP), National ICT Confederation of the

Philippines (NICP), and DICT. In October 2016, E-PESO gave a presentation that highlighted e-

payments for LGU fees as an essential link in streamlining the issuance of business permits and licenses.

E-PESO will develop the e-payments module, which will be a part of the standard training materials

and will participate in the Training of Trainers, scheduled for the second quarter of calendar year 2017.

7. PLANNED ACTIVITIES FOR NEXT QUARTER

INCLUDING UPCOMING EVENTS

During the next quarter, E-PESO will prioritize improving the enabling environment for e-payments

(Component 3), supporting the adoption and growth of e-payments in the existing set of CDIs and

other USAID partner LGUs (Component 4), and driving e-payment usage by national government

agencies with large payment streams including the DSWD’s conditional cash transfer program

(Component 1).

To achieve E-PESO’s objective of accelerating the shift to digital payments for broad-based economic

growth, having an efficient, digital and interoperable financial market infrastructure is foremost. E-

PESO is thus focused on support to the BSP in implementing its NRPS plan and operationalizing the

ACH agreements on batch EFT and low-value real-time credit push according to the principles

embodied in the NRPS Framework. E-PESO will also support the BSP in guiding the payments industry

to set up the PSMB, an industry association intended to self-regulate clearing operations, promote

consumer protection. E-PESO will further assist the BSP through technical assistance provided by a

2 LGU P4 or Public-Private Partnership for the People Initiative for Local Governments will serve as the vehicle for private

sector participation in the provision of infrastructure and social services that will be carried out by the local government.

The public-private partnership can be forged through the following schemes, among others: Build-and-Transfer (BT); Build-

Lease-and-Transfer (BLT); Build-Operate-and-Transfer (BOT); Contract-Add-and-Operate (CAO); Develop Operate-and-

Transfer (DOT); Rehabilitate-Operate-and-Transfer (ROT); Concession; Joint Venture (JV); Lease or Affermage;

Management Contract using or without LGU funds; Service Contract using or without LGU funds; Divestment or Disposition;

Corporatization; Incorporation of a Subsidiary with private sector equity; Gratuitous Donations.


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team of experts with experience in payment systems and supplemented by an international payments

system expert subcontracted through Leonine Initiatives. While the PSMB is being organized, E-PESO

shall provide technical advice to the BSP, who shall oversee and regulate industry actions particularly

the formation of prioritized ACH agreements.

Additionally, E-PESO will continue driving e-payment adoption and usage in the market through three

approaches: (1) supporting national government agencies with large payment streams to switch

disbursements to e-payment instruments and/or to expand e-payment collection options; (2) assisting

business solutions providers (e.g. computerized accounting systems, payroll systems, school

information systems, etc.) to integrate e-payments into their products for use by businesses, and; (3)

building e-payment ecosystems in CDIs and other USAID partner cities (specifically Batangas, Iloilo,

Cagayan de Oro, Puerto Princesa, Zamboanga, Tagbilaran, Quezon City, Valenzuela and Pulilan) in

partnership with the LGUs, private sector, utility firms, agent networks and e-payment service

providers. These approaches will be led by the E-PESO technical team experienced with payment

technology, business development, operations management, change management, and training and

research. E-PESO anticipates an average of two regional trips per month in addition to limited remote

consumer financial education and promotion support. E-PESO will also continue to work with the

partner LGUs to increase usage of their existing e-payment solutions and integrate additional payment

channels, in particular online and mobile payments, to provide more alternatives for their constituents

in paying local government taxes, permits and other fees.

E-PESO will also continue to support the expansion of vital agent networks by linking them into the

e-payment ecosystem in partner cities. In anticipation of a more inclusive NRPS, E-PESO will support

the participation of qualified smaller financial institutions in the payments system to enlarge the

network of e-payment users and deliver digital payments even in rural areas. E-PESO will assist value-

added service providers with the technology to link these smaller-scale institutions to payment clearing

operators. The E-PESO technical team will also initiate work with payment innovators to develop

sustainable low-tier merchant POS solutions and a more efficient bill payment solution using electronic

bills presentment and payment .

Lastly, with support from key partners, E-PESO will build awareness and advocate for e-payments to

the broader public through the ePay Pilipinas web portal and associate social media channels. The

Activity will provide information products and conduct knowledge sharing activities that convey best

practices and improve the capability of organizations and individuals to adopt e-payments.

The activities proposed for the quarter reflect USAID’s guidance that E-PESO’s funding levels will be

lower than originally anticipated.

USAID / E-PESO FY3-Q1 QUARTERLY REPORT 37

ANNEX 1: Press Coverage and Mentions

No press coverage or mentions during the quarter.


ANNEX 2: Summary of Results to Date by Key Indicator

Indicator DI 4: More predictable and reliable financial tools for the poor

Number of financial tools developed for the poor

Year 1 Quarter 4 (July – Sept 30, 2016)

- DSWD financial literacy tool and distribution of ATM/debit cards

Indicator 1.1: Adoption of e-payment services as monetary transaction (collection/

disbursement) option in five (5) national GPH agencies

Year 1 Quarter 4 (July 1 – Sept 30, 2015)

- Department of Social Welfare and Development (DSWD)

Year 2 Quarter 3 (Apr 1 – June 30, 2016)

- Bureau of Internal Revenue (BIR)

Indicator 1.2: Adoption of m-Money and e-payments in all cities of PFG CDI and other

cities/municipalities

No. of CDIs (and other cities/municipalities) that introduced or enhanced m-Money and e-payment

options


- Cagayan de Oro City

- Pulilan, Bulacan

- Zamboanga City

Year 2 Quarter 2 (Jan 1 – Mar 31, 2016)

- Batangas City

- Quezon City


- Valenzuela City

Indicator 1.3: Increased e-payment implementation and adoption to 500 (small,

medium, and large) businesses

Number of businesses introducing or enhancing e-payment options as a result of E-PESO support

Year 2 Quarter 1 (Oct 1 – Dec 31, 2015)

- Cagayan de Oro Electric Power & Light Company (CEPALCO)

- Cagayan de Oro Water District (COWD)

- Zamboanga City Water District (ZCWD)

- Palawan Electric Cooperative (PALECO)

Year 2 Quarter 4 (Jul 1 – Sept 30, 2016)

- University of the Visayas (UV)

Indicator 1.4: Over 25,000 people trained (via financial education and literacy) on the

uses of e-payments and m-Money services for improved household financial

management

No. of people trained (via financial education and literacy) on the uses of e-payments


- DSWD – MCCT Davao del Norte (3 females)

- NCR – MCCT Training QC, 7/24/15 (13 females, 1 male)

- NCR – MCCT Training Manila, 8/8/15 (185 females, 18 males)


- E-payments Technology & Innovations for Business, Puerto Princesa City and local chambers

of commerce, 9/29 – 9/30 (31 females, 21 males)


- FICCO Training, 3/19/16 to 3/20/16 (# of males, #females; 8,846 trained)

Indicator 2.1: Growth of front-end e-payment infrastructure expanded

No. of institutions supported by E-PESO to improve and/or expand their front-end infrastructure



- Puerto Princesa City

- Pulilan (Bulacan)

- Zamboanga City

- Cagayan de Oro Electric Power and Light Company (CEPALCO)



- Puerto Princesa Water District (PPWD)


- Auto Top-Up Ventures Inc. (ATVI)


- Batangas City

- Quezon City

Year 2, Quarter 3 (Apr 1 – Jun 30, 2016)

- OmniPay

- Mynt


- Valenzuela City

- BIR

- Mindanao University of Science & Technology (MUST)


Year 3 Quarter 1 (October 1 – December 31, 2016)

- PayMaya

Indicator 2.2: Back-end e-payment infrastructure strengthened

No. of institutions supported by E-PESO to improve and/or expand their back-end infrastructure



- Puerto Princesa City

- Pulilan (Bulacan)

- Zamboanga City

- Cagayan de Oro Electric Power and Light Company (CEPALCO)



- Puerto Princesa Water District (PPWD)


- Auto Top-Up Ventures Inc. (ATVI)


- Batangas City

- Quezon City



- BIR

- Mindanao University of Science & Technology (MUST)


Indicator 2.3. E-payment infrastructure gaps identified

Number of gap analysis reports at industry or ecosystem level


- E-payments Landscape


- Philippine Individual Payments Baseline Survey

- Philippine Agent Network Study

Indicator 3.1: Financial regulation refined to manage growth of e-payments

a. No. of circulars, regulations, and/or local ordinances refined or clarified to support e-payment

growth

Year 1 Quarter 4 (Jul 1 – Sep 30, 2015)

- Zamboanga City Council Resolution No. 1067 issued last Sept 15, 2015

- Puerto Princesa Executive Order 15 Series 2015 issued last Sept 21, 2015


- 2016 National Expenditure Program, Section 76 (supports adoption and compliance to e-

payments in all government transactions)

- Puerto Princesa City Council Ordinance passed last December 2015


- BIR Regulation 3-2016 issued last March 23, 2016


- Joint Memorandum Circular 01-2016 issued last August 30, 2016

- Tagbilaran City Executive Order 23 Series of 2016 issued last Sept 21, 2016

Year 3, Quarter 1 (October 1 – December 31, 2016)

- Tagbilaran City Ordinance No. 21-16 issued November 3, 2016

b. No. of public-private dialogues to support strengthening e-payment environment

Year 1 Quarter 3 (Apr 1 – Jun 30, 2015)

- NATCCO General Assembly (May 23-24, 2015)


- Launch of the National Strategy for Financial Inclusion (July 1, 2015)

- Dialogue of Queen Maxima and Philippine banking industry and other players (July 2015)

- Microfinance Council of the Philippines Inc. (MCPI) Annual Conference (July 2015)

- DILG Regional ICT Forum – Mindanao (September 3, 2015)

- DILG Regional ICT Forum – Luzon (September 16, 2015)

- DILG Regional ICT Forum – Visayas (September 22, 2015)

- Chief Information Officers Foundation Forum (September 30, 2015)



- Philippine Agent Network Study Launch (October 26, 2015)

- Remittance for Development Council Meeting (November 6, 2015)

- NEA-Electric Cooperatives Consultation Session (November 26, 2015)

- Launch of the NRPS (December 9, 2015)

- BSP-CEOs Conference Meetings (December 2015)

Year 2, Quarter 2 (Jan 1 – Mar 31, 2016)

- SURGE Stakeholder's Forum - Batangas City (January 19, 2016)

- SURGE Stakeholder’s Forum - Tagbilaran City (January 26-27, 2016)

Year 2, Quarter 3 (Apr 1 – Jun 30, 2016)

- Innovative Strategies for Development Summit 2016 (June 8-10)

- CDO MSME Business Forum, Cagayan de Oro City (June 10-11)

- Impact of M-Money in the Bottom of the Pyramid Summit (June 17)


- Digital Congress: “The Power of X” organized by IMMAP (October 12, 2016)

- Information and Communications Technology (ICT) Forum organized by DILG (October 27,

2016)

Indicator 3.5: Security measures in e-payments strengthened

No. of guidelines developed and forums held that promote awareness on digital security best

practices or consumer protection

Year 2, Quarter 2 (Jan 1 – Mar 31, 2016)

- FICCO Training, 3/19/16 to 3/20/16 (2,455 of males, 6,421 females; 8,876 trained)

Indicator 3.6: Global knowledge-sharing on e-payments promoted

a. No. of articles promoting e-payments

Year 1 (March 18 – Sept 30, 2016)

Philippines pushing for cashless society, but it’s a long way off

April 25, 2015 | techinasia.com

https://www.techinasia.com/philippines-cashless-

society/?utm_source=search&utm_medium=web&utm_campaign=%2Fphilippines-cashless-

society%2F

MVP pushes digital payments to fast-track financial inclusion in Philippines

July 27, 2015 | The Philippine Star (philstar.com)

http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-

financial-inclusion-philippines

USAID, LGU to launch E-PESO activity

August 3, 2015 | Daily Zamboanga Times

http://zamboangatimes.ph/top-news/15657-usaid-lgu-to-launch-e-peso-activity-.html

Smart cites digital payment’s relevance

August 11, 2015 | The Daily Tribune

http://www.tribune.net.ph/business/smart-cites-digital-payment-s-relevance

Prepaid cards for cash transfer distributed to street families, indigenous people, etc.

August 12, 2015 | philnews.com

http://philnews.com/headlines/2015/headline_news_0813ag.htm

https://www.techinasia.com/philippines-cashless-society/?utm_source=search&utm_medium=web&utm_campaign=%2Fphilippines-cashless-society%2F



http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-financial-inclusion-philippines

http://www.philstar.com/business/2015/07/27/1481268/mvp-pushes-digital-payments-fast-track-financial-inclusion-philippines

http://zamboangatimes.ph/top-news/15657-usaid-lgu-to-launch-e-peso-activity-.html

http://www.tribune.net.ph/business/smart-cites-digital-payment-s-relevance

http://philnews.com/headlines/2015/headline_news_0813ag.htm


More convenient: Prepaid cards distributed to CCT beneficiaries

August 13, 2015 | moveon.ph

http://www.moveon.ph/more-convenient-prepaid-cards-distributed-to-cct-beneficiaries/

Beng, USAID launch e-PESO system in ZC

August 28, 2015 | Daily Zamboanga Times

http://zamboangatimes.ph/top-news/15930-beng-usaid-launch-e-peso-system-in-zc.html

Zambo, USAID launch E-PESO program

August 28, 2015 | Zimnet New

http://www.zimnet.com/archives/1195-Zambo,-USAID-launch-E-Peso-program.html

Zamboanga Mayor Beng Climaco lauded for dynamic leadership

August 28, 2015 | Mindanao Examiner

http://mindanaoexaminer.com/zamboanga-mayor-beng-climaco-lauded-for-dynamic-leadership/

Program to help PH achieve 20-fold increase in e-payments

August 31, 2015 | Mindanao Times

http://mindanaotimes.net/program-to-help-ph-achieve-20-fold-increase-in-e-payments/

USAID cites Zambo’s role as engine of growth

September 1, 2015 | Zamboanga Today Online

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-

of-growth-.html

USAID launches E-PESO project in Zambo

September 2, 2015 | pia.gov.ph (Philippine News Agency)

http://news.pia.gov.ph/article/view/2831441184029/usaid-launches-e-peso-project-in-zambo

‘E-PESO Activity” in Zamboanga

September 22, 2015 | The Manila Times Online

http://www.manilatimes.net/e-peso-activity-in-zamboanga/220104/

ULAP co-organizes conduct of LGU ICT FORUM Mindanao Leg in Cagayan de Oro City

September 2015 | ulap.net.ph

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-

of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti


Microsoft enters partnership to promote e-payment

October 22, 2015

http://www.tribune.net.ph/business/microsoft-enters-partnership-to-promote-e-payment

USAID lauds PHL for improving e-payment infrastructure

BusinessMirror November 18, 2015

http://www.businessmirror.com.ph/usaid-lauds-phl-for-improving-e-payment-infrastructure/

City gears for e-Peso project take-off

Zamboanga Today December 29, 2015

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-

off.html

http://www.moveon.ph/more-convenient-prepaid-cards-distributed-to-cct-beneficiaries/

http://zamboangatimes.ph/top-news/15930-beng-usaid-launch-e-peso-system-in-zc.html

http://www.zimnet.com/archives/1195-Zambo,-USAID-launch-E-Peso-program.html

http://mindanaoexaminer.com/zamboanga-mayor-beng-climaco-lauded-for-dynamic-leadership/

http://mindanaotimes.net/program-to-help-ph-achieve-20-fold-increase-in-e-payments/

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-of-growth-.html

http://www.zamboangatoday.ph/index.php/top-stories/20938-usaid-cites-zambos-role-as-engine-of-growth-.html

http://news.pia.gov.ph/article/view/2831441184029/usaid-launches-e-peso-project-in-zambo

http://www.manilatimes.net/e-peso-activity-in-zamboanga/220104/

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti

http://ulap.net.ph/index.php/en/program-updates/news-updates/379-ulap-co-organizes-conduct-of-lgu-ict-forum-mindanao-leg-in-cagayan-de-oro-city-with-dilg-blgd-dost-icto-and-dti

http://www.tribune.net.ph/business/microsoft-enters-partnership-to-promote-e-payment

http://www.businessmirror.com.ph/usaid-lauds-phl-for-improving-e-payment-infrastructure/

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-off.html

http://zamboangatoday.ph/index.php/top-stories/22054-city-gears-for-e-peso-project-take-off.html


Zamboanga City set to launch e-Pesos project

Sunstar Zamboanga December 31, 2015

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-

pesos-project-449526


USAID to hold two-day caravan for market vendors

Mindanao Daily News | February 18, 2016

http://www.mindanaodailynews.com/usaid-to-hold-two-day-caravan-for-market-vendors/

USAID, CDO speed up market stall payment via e-Bayad Tour

pia.gov.ph | February 23, 2016

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-

via-e-bayad-tour-

M-money, other e-payment options featured at QC

e-Bayad Tour caravan

quezoncity.gov.ph | March 2016

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-

options-featured-at-qc-e-bayad-tour-caravan


QC, USAID conduct e-Bayad Tour Caravan

Philippine Information Agency | April 7, 2016

http://news.pia.gov.ph/article/view/231459994344/qc-usaid-conduct-e-bayad-tour-caravan-

BIR, GCash relaunch e-filing, payments tie-up

The Manila Times | April 12, 2016

http://www.manilatimes.net/bir-gcash-relaunch-e-filing-payments-tie-up/255703/

BIR, Globe relaunch mobile income tax payment system

The Standard | April 12, 2016

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-

system.html

BIR, Gcash relaunch first e-tax filing and payment system in PH

Manila Bulletin | April 13, 2016

http://www.mb.com.ph/bir-gcash-relaunch-first-e-tax-filing-and-payment-system-in-ph/

BIR, GCash relaunch first e-tax filing, payment system

SunStar | April 13, 2016

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-

payment-system-467732

Philippines’s tax bureau taps mobile payment tax collection

Enterpriseinnovation.net | April 19, 2016

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-

collection-177741850

Globe's GCash adapted for tax payment

Telecom Asia | April 19, 2016

http://www.telecomasia.net/content/globes-gcash-adapted-tax-payment

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-pesos-project-449526

http://www.sunstar.com.ph/zamboanga/local-news/2015/12/31/zamboanga-city-set-launch-e-pesos-project-449526

http://www.mindanaodailynews.com/usaid-to-hold-two-day-caravan-for-market-vendors/

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-via-e-bayad-tour-

http://news.pia.gov.ph/article/view/2601456209389/usaid-cdo-speed-up-market-stall-payment-via-e-bayad-tour-

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-options-featured-at-qc-e-bayad-tour-caravan

http://quezoncity.gov.ph/index.php/recent-news/1994-mobile-money-other-electronic-payment-options-featured-at-qc-e-bayad-tour-caravan

http://news.pia.gov.ph/article/view/231459994344/qc-usaid-conduct-e-bayad-tour-caravan-

http://www.manilatimes.net/bir-gcash-relaunch-e-filing-payments-tie-up/255703/

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-system.html

http://thestandard.com.ph/business/203492/bir-globe-relaunch-mobile-income-tax-payment-system.html

http://www.mb.com.ph/bir-gcash-relaunch-first-e-tax-filing-and-payment-system-in-ph/

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-payment-system-467732

http://www.sunstar.com.ph/cebu/business/2016/04/13/bir-gcash-relaunch-first-e-tax-filing-payment-system-467732

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-collection-177741850

http://www.enterpriseinnovation.net/article/philippines-tax-bureau-taps-mobile-payment-tax-collection-177741850

http://www.telecomasia.net/content/globes-gcash-adapted-tax-payment



2016 International Conference on Development: Oca, 6 Others Banner CDO Delegation To

International Confab on Urban Development

www.kagay-an.com | July11, 2016

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-

delegation-intl-confab-urban-development/

QC shares best practices in electronic payment at USAID international conference

Philippine Information Agency | July 14, 2016

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-

payment-at-usaid-international-conference

Digital Commerce Expo Set To Revolutionise the Philippines This September 6-7

Yahoo Finance | August 17, 2016

http://finance.yahoo.com/news/digital-commerce-expo-set-revolutionise-020000870.html

Digital Commerce Expo Set To Revolutionise the Philippines This September 6-7

Korea IT Times | August 22, 2016

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-

september-6-7

Advocates seek to boost e-payments growth by 2020

Rappler | September 6, 2016

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-

pilipinas

b. No. of global knowledge-sharing events that highlight the Philippines e-payment

environment/players


- Cards & Payments Philippines 2015, Manila, Philippines (September 2-3, 2015)

- G-20 Responsible Finance Forum, Istanbul, Turkey (September 2015)


- Mondato Summit Asia, Manila, Philippines (October 20-22, 2015)

- Financial Times - Citibank Asia Pacific Financial Inclusion Summit, Manila, Philippines

(October 26-29, 2015)


- Innovative Strategies for Development Summit 2016, Crowne Plaza Hotel, Ortigas Center,

Pasig City (June 8-10, 2016)


- 2016 International Conference on Urban Development, Sofitel Plaza, Pasay City (July 12-13,

2016)

- Cards and Payments 2016, SMX Mall of Asia, Pasay City (September 6-7, 2016)

2.2.3 Local Government and Decentralization

2.2.3-5 Number of sub-national entities receiving USG assistance that improve their

performance

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-delegation-intl-confab-urban-development/

http://www.kagay-an.com/2016-international-conference-urban-developmentoca6-banner-cdo-delegation-intl-confab-urban-development/

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-payment-at-usaid-international-conference

http://news.pia.gov.ph/article/view/231468403099/qc-shares-best-practices-in-electronic-payment-at-usaid-international-conference

http://finance.yahoo.com/news/digital-commerce-expo-set-revolutionise-020000870.html

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-september-6-7

http://www.koreaittimes.com/story/61582/digital-commerce-expo-set-revolutionise-philippines-september-6-7

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-pilipinas

http://www.rappler.com/technology/features/145402-advocates-seek-epayments-growth-epay-pilipinas




- Pulilan, Bulacan

- Zamboanga City


- Batangas City

- Quezon City


- Valenzuela City

PPP Public/Private Partnerships

PPP3 Number of organizations (for and not-for-profit, and government) that have applied new

technologies and/or management practices due to USG-supported Public-Private Partnerships (PPPs)



- Pulilan, Bulacan

- Zamboanga City

- Department of Social Welfare and Development (DSWD)


- Cagayan de Oro Electric Power & Light Company (CEPALCO)





- Batangas City

- Quezon City


- Bureau of Internal Revenue (BIR)


- Valenzuela City


EG.4.2-1

Total number of clients benefiting from financial services provided through USG-assisted financial

intermediaries, including non-financial institutions or actors

EG.4.2-2

Number of financial intermediaries serving poor households and microenterprises supported by

USG assistance


- Land Bank of the Philippines


GNDR Gender

GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to

productive economic resources (assets, credit, income or employment)

Male Female Total % Male % Female

Year 1

DSWD – MCCT Davao del Norte - 3 3 0% 100%

NCR – MCCT Training QC, 7/24/15 1 13 14 7% 93%

NCR – MCCT Training Manila, 8/8/15 18 185 203 9% 91%

E-payments Technology & Innovations for

Business, Puerto Princesa City and local

chambers of commerce, 9/29 – 9/30

21 31 52 40% 60%

Year 1 Total 40 232 272 15% 85%

Year 2

FICCO Training, 3/19/16 to 3/20/16 2,455 6,421 8,876 28% 72%

Year 2 Total 2,455 6,421 8,876 28% 72%

Cumulative 2,495 6,653 9,148 27% 73%


ANNEX 3: CDI Snapshot

Puerto Princesa Iloilo City Tagbilaran City Cagayan de Oro Zamboanga Quezon City Valenzuela City

Implementation

Challenges Lack of system/

infrastructure e-

readiness on the

part of the LGU:

the city just

acquired a new

system; they are

still in the process

of completing data

migration

LGU back-end

system has no

module/ platform

yet on e-payments;

system developer

has no prior

relationship/

engagement with

any e-payment

service provider

Getting policies enacted can take

sometime.

In the case of Iloilo, soliciting the comments

from concerned parties on the MOA

between the LGU and their partner bank

(DBP) on online payments and having

proposed revisions reviewed/approved has

taken more than three months.

In the case of Tagbilaran City, it also took

several months before the City Ordinance

and the Executive Order creating the LGU

project team was finally approved.

Lack of E-PESO

physical

presence due to

budget

constraints

Prioritization

of the

business

process

automation

and GIS over

the

payments

system

Promoting P2G services already available

require complementary and continuous

effort by public (LGU) and private

(service providers) sectors.

E-PESO conducted three and two runs of

the eBayad Tour in Quezon City and

Valenzuela City, respectively. Despite the

campaign, customer awareness and usage is

still low. For instance, while mobile

transactions increased by 220+% from

2015’s transaction volume, they only

account for 2% of Quezon City’s total real

property tax transactions. Clearly, there

remains a lot to be done to promote

awareness and induce usage. The efforts by

the LGU in promoting the services via the

existing touch points (social media

accounts, alerts, mailers, flyers, posters,

announcements during recurring events

e.g. general assemblies, ceremonies etc.)

can be complemented with existing

marketing efforts by the service provider

via existing touch points (cash-in cash-out

agents, frontline staff especially personnel

who handle account openings, alerts,

mailers, flyers, and posters). Collective

effort via existing touch points is not only

cost effective, as this requires very minimal

marketing investment, it is also sustainable

and continuous.


Puerto Princesa Iloilo City Tagbilaran City Cagayan de Oro Zamboanga Quezon City Valenzuela City

Policy and

Governance

Support

There are now

more city

councilors who

are supportive of

implementing e-

payments.

The Mayor,

Department

Heads, and

the City

Council are

supportive of

e-payments.

LGU can enact a

local ordinance that

gives taxpayers who

opt to pay digitally a

discount/incentive.

LGU can enact a

local ordinance

that gives

taxpayers who opt

to pay digitally a

discount/incentive

Lessons

Learned

It is critical during

onboarding to

provide support/

coordination work in

helping LGU system

developers connect

with e-payment

service providers.

In both LGUs, lack of E-PESO physical

presence to make constant follow-ups might

have contributed to the delay. While phone

calls, emails or SMS messages have worked in

most instances, face-to-face follow-ups are

sometimes necessary to humanize

development efforts.

E-PESO physical

presence is

important to keep

the momentum on

our side.

Strengthened

personal

relationships

with the

technical

working group

is important.

(See implementation challenges, can also

be seen as lessons learned)

Planned

Activities for

Next Quarter

1. Full

implementation of

disbursement of

benefits of

contractuals/health

workers via Land

Bank Cash Cards.

2. E-PESO to follow

up on USAID

approval on the

proposed partnership

agreements between

USAID and local

utility firms.

3. E-PESO to carry

out support activities

for expansion of local

utilities' collection

services through

online and mobile

channels.

1. Support LGU in

the adoption of

online and card

payments for

business permit fees;

card payment for

market fees.

2. Explore e-payment

options for schools.

3. Work on the

development/conduct

of activities relating

to awareness

building, trial and/or

usage of e-payment

solutions for women

entrepreneurs as

part of the LGU's

activities for

Women's Month

(March).

1. Provide

inputs/technical

assistance in setting

up online debit and

credit card payment

for real property and

business taxes.

2. Work on the

development/conduct

of activities relating

to awareness

building, trial and/or

usage of e-payment

solutions for women

entrepreneurs as

part of the LGU's

activities for

Women's Month

(March).

1. Expansion of the

LGU online

payment to

accommodate

Mastercard.

2. Implement

mobile payment

for CEPALCO and

COWD.

3. Implement

online loan

payment

collections for

FICCO members.

4. Implement

payment-enabled

student IDs with

USTSP.

1. Re-

engagement of

the private

sector and

utilities to

adopt e-

payments.

2. Conduct of

Training of

Trainors for

the LGU.

3. Full

implementatio

n of the online

payment

system for tax

collection of

the LGU.

1. Conduct targeted

marketing and

promotion focused

on niche taxpayers

(condominium

owners,

homeowners

associations, market

vendors

associations).

2. Support LGU in

setting up credit card

payments.

3. Enhance collection

of taxes to include

miscellaneous fees

(amortization for

social housing, traffic

violation, etc.).

1. Conduct

targeted marketing

and promotion

focused on niche

taxpayers

(homeowners

associations,

market vendors

associations).

2. Propose

issuance of

electronic official

receipts for online

and mobile

payments and

provide technical

inputs in outlining

procedures and

technical set-up of

service.


U.S. Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3524

www.usaid.gov

http://www.usaid.gov/

e-peso activity 7th quarterly reportpdf.usaid.gov/pdf_docs/pa00n2b2.pdf · coa commission on audit...

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