“WE are inching closer to mandating digital payments in all government transactions.”
This was the statement made by House Majority Leader Ferdinand Alexander “Sandro” Marcos of Ilocos Norte as the House of Representatives approved on second reading a measure that will push government offices to shift more of their payments and collections to safe digital channels, a move aimed at making public transactions faster, more transparent and easier for ordinary Filipinos.
Marcos said House Bill (HB) No. 8468, or the eBayad Act, answers a day-to-day problem many families already feel: delays, long lines and cash-only systems that make even the most basic transactions harder than they should be.
“Hindi dapat nauubos ang oras ng tao sa pila at pabalik-balik na transaksiyon. Through the eBayad bill, we are building a government that delivers faster, cleaner, and more convenient transactions for ordinary Filipinos,” Marcos stressed.
He noted the measure is part of the Legislative-Executive Development Advisory Council’s (LEDAC) Common Legislative Agenda, as the House under the leadership of Speaker Faustino “Bojie” G. Dy III keeps a steady pace in moving priority reforms from committee work to plenary action.
Under the bill sponsored by Manila Rep. Irwin Tieng, Chair of the House Committee on Banks and Financial Intermediaries, covered agencies will be required to use safe, efficient and inclusive digital disbursement for payments of goods and services and other government outlays, including cash assistance, as well as the payment of salaries, wages, allowances and honoraria of employees across national agencies, government corporations, LGUs, SUCs and LCUs, including relevant government offices based abroad.
“The proposed measure, entitled the e-Bayad Act, seeks to institutionalize the use of safe and efficient digital payment systems in financial transactions of the government and merchants. This initiative aligns with the State’s policy in promoting ease of doing business, financial inclusion, and technological innovation in public service delivery,” Tieng said in his sponsorship speech.
“As government and private transactions increasingly move online, the bill seeks to establish clear standards that ensure faster, safer, and more transparent financial processes. Digital payments for government disbursements and collections will reduce delays, minimize risks from cash handling, and enhance compliance with auditing and accounting rules,” Tieng said.
To make the shift workable on the ground, the measure authorizes covered agencies to directly send funds to a recipient’s account through automatic debit arrangements, interoperable electronic fund transfers or other facilities of government-serving payment service providers, so assistance and payments can reach people with fewer steps.
On the collection side, the bill will require covered agencies to offer digital collection as a mode for taxes, tolls, imposts and other revenues, including non-income collections and receipts, while keeping cash as an option, and it also recognizes electronic official invoices or receipts as valid proof of payment, subject to existing accounting, audit and tax rules.
To keep procurement disciplined and consistent across government, the bill creates a steering committee chaired by the Bangko Sentral ng Pilipinas, with key agencies as members, to guide implementation, promote cost-efficiency and transparency in acquiring digital payment solutions and resolve issues that may arise as agencies transition to digital systems.
The measure also gives local governments a role in accelerating adoption among merchants by mandating LGUs to craft ordinances that provide monetary or non-monetary incentives, including reduced fees or other support, and to extend assistance especially to small and micro-merchants like market vendors, tricycle operators and food stalls so they can accept digital payments without being left behind.
To encourage wider use while keeping costs fair, the bill directs the Securities and Exchange Commission and the Bureau of Internal Revenue to craft incentive programs that promote digital payments, prescribes graduated pricing or outright exemption for micropayments as may be set by the BSP in consultation with stakeholders and mandates the BSP to formulate a multi-year roadmap aligned with the e-government master plan, with targets and outcomes for at least five years.
The bill sets a transition period of up to three years, with tiering guidelines to reflect agency capacity, while placing heavy emphasis on security by requiring that data, information and ICT systems used for digital payments be protected at all times, and by laying out duties for payment service providers on security, data privacy, cooperation with COA post-audits and compliance with payment system agreements.
Violations of the measure, its implementing rules and BSP directives will carry penalties, including fines ranging from P200,000 to P2 million and imprisonment of two to 10 years, or both, without prejudice to sanctions under the National Payment Systems Act, while COA will issue pertinent rules for post-audit of digital payments involving government transactions.
A joint congressional oversight committee will monitor implementation as the bill authorizes agencies to budget for the required systems and infrastructure, with releases that may be tied to actual adoption.
The measure was introduced by Reps. Tieng, Bienvenido Abante Jr., Joel Chua, Ernesto Dionisio Jr., Giselle Mary Maceda, Rolando Valeriano, Mikaela Angela Suansing, Ralph Wendel Tulfo, Jocelyn Tulfo, Miguel Luis Villafuerte, Howard Guintu, Agatha Paula Aguilar Cruz, Kenneth Gatchalian, Juan Carlos “Arjo” Atayde, Edvic Yap, Eric Go Yap, Salvador Pleyto, James “Jojo” Ang Jr., Jesus “Jess” Marquez, Franz Pumaren, Eric Olivarez, Brian Raymond Yamsuan, Javier Miguel Lopez Benitez, Ronaldo Puno, Ferdinand “B1” Beltran, Sonny “SL” Lagon, Joseph Kim Yu, Jeyzel Victoria Yu,
Maria Kristina Jihan Glepa, Kristine Singson-Meehan, Eduardo Rama Jr., Patrick Michael Vargas, Reynante Arrogancia, Gerardo “Gerryboy” Espina Jr., Shirlyn Bañas-Nograles, Linabelle Ruth Villarica, Jorge Daniel Bocobo, Henry “Indy” Oaminal Jr., Maria Cristina Angeles, Adrian Salceda, Irene Labadlabad, Felimon Espares, Ryan Recto, Janette Garin, Julienne “Jam” Baronda, Marie Bernadette Escudero, Maria Carmen Zamora, Keith Micah “Atty Mike” Tan, Monique Yazmin Maria Lagdameo,
Romeo Momo Sr., Joseph Tan, Dale Corvera, Charisse Anne Hernandez, John Tracy Cagas, Alexandria “Queenie” Gonzales, Johanne Monich Bautista, Brian Poe, Milagros Aquino-Magsaysay, Patricia Calderon, Nathaniel Oducado, Laarni Lavin Roque, Leonel “Jhong” Ceniza, De Carlo Uy, Gloria Macapagal-Arroyo, Sittie Aminah Dimaporo, Arthur Yap, Jose Manuel Tadeo “Chel” Diokno, Audrey Kay Zubiri, Jude Acidre and Eleandro Jesus Madrona.
