2. The Philippine EFT System Operations Network (PESONet)
After being appointed as the Clearing Service Operator for PESONet and with the support of the BSP, PPMI, the PESONet ACH and the industry as a whole, volume of transactions in PESONet grew more than double as it continues to climb with the government agency’s (Social Security System) decision to use the facility to disburse via DBP, pension and other benefits to its members.
2.1. Transaction Volume of PESONet
From an average of about 1.2 million transactions per month in the 1st quarter of 2020, the transaction volume in the 2nd quarter rose to an average of 2.8 million monthly despite the onset of community quarantine as the general banking public shifted to electronic payment means. Transaction volume rose further to an average of 3.2 million monthly in the 3rd quarter and settled at an average of 5.1 million monthly transactions in the last quarter.
Looking at the five-year chart below, seen clearly is the consistent and significant growth of PESONet volume over the years, almost doubling the figures the following year. From 12.1 million transactions in 2019, PESONet volume posted 203.9% increase in 2020 by recording 36.8 million transactions by the end of 2020. This is a double increase rate compared to 2019 where it recorded a 100% increase from 2018’s volume of 6.1 million.
2.2. Transaction Value of PESONet
Parallel to the volume trend, PESONet transaction value likewise grew consistently over the years. In the 1st quarter of 2020, transaction value recorded a monthly average of ₱138.3 billion. PESONet recorded a monthly average of ₱206.6 billion in the 2nd quarter while the community quarantine was in effect, followed by ₱268.2 billion in the 3rd quarter. In the last quarter of 2020, the average monthly value of PESONet settled at ₱317.2 billion.
On the annual basis, PESONet continue to grew significantly, likewise registering its largest increase of 121.2% in 2020. From a 56.7% increase recorded in 2019, transaction value of PESONet rose to ₱2.8 Trillion in 2020 from ₱1.26 Trillion of the previous year.
3. Philippine Domestic Dollar Transfer System (PDDTS)
3.1. Real-Time Gross Settlement/Payment versus Payment
The PDDTS High Value Transfer System (HVTS) was successfully launched on August 17, 2020. PDDTS HVTS processes both Real-Time Gross Settlement (RTGS) and Payment versus Payment (PvP). There are 47 banks participating in the RTGS/PvP system as of year-end 2020. From the initial launch until the year end, there were a total of 168,241 transactions amounting to $318.7 billion processed in the PDDTS HVTS (both RTGS and PvP), broken down as follows:
3.1.1. Transaction Volume
Since PCHC started operating the PDDTS HVTS, volume posted 168,241 transactions; 116,867 of which are RTGS; 2,268 are Cross-Border and 49,106 are PvP transactions.
3.1.2. Transaction Value
The aggregate amount of US$318.7 billion processed under PDDTS HVTS is distributed as follows: $50.6 billion from RTGS; $57.6 billion from Cross-Border; and $210.6 Billion from Payment vs. Payment.
3.2. Batch End of Day (EOD) Netting
3.2.1. Transaction Volume
Despite the down trend of remittances in the last 2 years (2018 and 2019), volume of transactions in 2020 recorded an upward trend. Though the increase in number of transactions may seem insignificant, this retail channel was also used to send transfer USD to local beneficiaries. As can be seen below, transaction count rose to 9% or about 10,300 compared to the previous year. While 2019 recorded 114,765 PDDTS EOD transactions, 2020 transaction count reached 125,018.
3.2.2. Transaction Values of PDDTS
Unlike the transaction volume however, transaction value of PDDTS continued to experience a downward trend. From an aggregate value of $1.79 billion in 2019, value declined further to $1.73 billion in 2020. This is understandable since one major reason is that pandemic affected economies worldwide and many OFWs lost their jobs disabling them to send substantial remittances back home.
4. Payment Application Secure Version 5 (PAS5)
With the imposition of travel bans, international trades likewise slowed down significantly affecting importation activities. The overall annual drop of 16.6% in transaction volume is remarkable. The following sections show how the volume of transactions behaved on a monthly basis.
4.1. Monthly Transaction Count
Starting high similar to the previous year, payment transaction count for custom duties fell even before the imposition of travel ban and community quarantine that forced transport industries to limit trips to essentials.
From 104,583 payment transactions in January 2020, payment transactions fell 36% in February. While such is not unusual as seen from patterns of previous years, the transaction trend continued to fall despite an insignificant increase in March. After registering the lowest volume in May 2020 (even lower than 57,551 transactions recorded in February 2014), payment transaction was able to recover in June. From 57,261 count recorded in May, transaction count rose to 77,226 in June or about 35% higher from previous month. Transaction count continues to follow the usual pattern of collection but only managed to hit previous records in months of September and December.
4.2. Monthly Transaction Values
Transaction values on the other hand demonstrated a similar pattern. Transaction value of custom duties fell in February, slightly went up in March then fell continuously in April and May. It similarly recovered in June and followed the usual collection pattern but did not surpass recorded collection from previous years.
The aggregate collection for 2020 only reached ₱44 billion compared to ₱50 billion in 2019, which is 15% less compared to the previous year.
4.3. Distribution of Transaction Volume
Looking at the distribution, Manila International Container Port garnered 42% of the transaction volume numbering around 399,000, followed distantly by Ninoy Aquino International Airport at 16% or around 153,400 transactions, zooming to third is Port of Manila with 14% or around 133,900 transactions, 4th is Port of Davao at 9% or around 91,200 transactions and 5th is Port of Cebu with 6% or around 54,100 transactions. The rest of the ports cornered 13% of the total transaction volume which is around 129,000.
4.4. Distribution of Transaction Value
Of course transaction value does not reflect a similar trend. The rest of the ports that did not top in terms of transaction volume nevertheless posted the highest. Other Ports garnered 38% of the entire transaction value or around ₱192.4 billion followed by the top collection port, Manila International Container Port getting 27% of the entire transaction value or around ₱138.2 billion. Port of Batangas got 17% share or around ₱85.2 billion, followed by Port of Manila getting 8% or around ₱39 billion, closely followed by Ninoy Aquino International Airport at 6% or about ₱30 billion and finally, Port of Subic, getting 5% share of the total transaction value or around ₱28.1 billion.
5. PCHC Payments Gateway (PayGate)
For the PayGate which is still on its infancy stages, we see an almost steady growth in 2020. As of year-end 2020, there are still three banks that are actively using the platform for eGov. It is expected though that with one of the biggest banks launching its eGov platform in 2021 and with the marketing push being undertaken by current participating banks, it is expected that the volume will increase exponentially by the end of next year. Following are the charts depicting the monthly volume and value of transactions that were sent via PayGate:
5.1. Transaction Volume Processed Under PayGate
5.2. Transaction Value Processed Under PayGate