BancNet, the clearing switch operator for Philippines’ fund transfer service InstaPay, has collaborated with Mastercard and Vocalink to improve InstaPay’s capabilities.
In order to operate the infrastructure, Mastercard will use an Asia Pacific payments hub leveraging the ISO 20022 messaging format.
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Mastercard said that the infrastructure will offer BancNet users data analytics and anti-money laundering services to aid the detection of mule accounts.
This infrastructure is also said to offer BancNet users cyber security tools.
Bangko Sentral ng Pilipinas, the central bank of Philippines, expects 20% of all payment transactions in the country to be digital by next year.
The latest alliance is said to support this objective.
Bangko Sentral ng Pilipinas deputy governor Chuchi Fonacier said: “With InstaPay, we see greater empowerment of both the public and private sectors.
“Greater efficiencies of electronic payment channels will also bring about an accelerated velocity of payments, increasing economic activities.”
At present, InstaPay primarily supports P2P transactions.
The Vocalink technology will enable InstaPay to support broader consumer payments, government and commercial payments.
Through Vocalink’s technology, one can transfer funds using mobile numbers and email addresses.
BancNet president Cezar Consing said: “BancNet’s use of Mastercard and Vocalink’s technology will turbocharge InstaPay and lay the foundation for the growth of cashless payments in the Philippines.”
