The Bangko Sentral ng Pilipinas (BSP) is helping Cabagan, Isabela take a bold step toward digital financial inclusion with the launch of the Paleng-QR Ph Plus program last August 19, 2024. The Paleng-QR Ph Plus program is a joint initiative by the BSP and the Department of the Interior and Local Government that aims to promote electronic payments through the use of QR Ph, the national standard for quick response (QR) codes.
Mayor Christopher A. Mamauag, alongside BSP Tuguegarao Branch Area Director Eva Lynne M. Marcos, led the event at the Cabagan Convention Center, highlighting the transformative potential of QR Ph payments for the local economy.
BSP Tuguegarao Branch Area Director Eva Lynne M. Marcos (right) and Cabagan, Isabela Mayor Christopher A. Mamauag (left) during the launch of Paleng-QR Ph Plus in Cabagan, Isabela
A collaboration between the BSP and the Department of the Interior and Local Government (DILG), the Paleng-QR Ph Plus initiative promotes the adoption of digital payments in public markets, transportation systems, and local businesses.
By using QR Ph, the national standard for quick response codes, the program provides a seamless, secure, and efficient way for residents to engage in e-payments, thereby promoting greater financial inclusion in rural communities.
BSP boosting financial inclusion in Isabela
For the municipality of Cabagan, the introduction of Paleng-QR Ph Plus represents a significant shift in how businesses and consumers conduct transactions. With many small business owners still reliant on cash, the initiative introduces a more efficient and secure means of doing business.
The simplicity of scanning QR codes with mobile phones allows both merchants and consumers to make payments without the need for physical cash, ensuring smoother and faster transactions.
Cabagan, Isabela Mayor Christopher A. Mamauag makes a successful digital payment using QR PH
Mayor Mamauag emphasized the importance of the initiative, saying, “The adoption of QR Ph payments in our markets and public transport systems is a significant step toward modernizing Cabagan’s financial landscape. By embracing this technology, we are ensuring that our local businesses and residents benefit from a more inclusive and accessible financial system.”
As part of the launch, financial service providers (FSPs) assisted residents and market vendors with opening digital transaction accounts compatible with QR Ph. These accounts allow people to participate in the digital economy and reduce their dependence on cash-based transactions.
In a media advisory, the BSP said that digital payments offer a critical step toward financial empowerment in a municipality like Cabagan, where many residents lack access to traditional banking services.
BSP’s commitment to a digital Philippines
The Paleng-QR Ph Plus program forms a key pillar of the BSP’s broader financial inclusion and digitalization agenda. It aligns with the BSP’s goal of transforming 50% of all retail transactions into digital form by the end of 2025. Targeting public markets and transportation systems, the program reaches underserved communities and encourages digital payment adoption where it is most needed.
“BSP’s vision of a digital and financially inclusive Philippines begins at the grassroots level,” said BSP Tuguegarao Branch Area Director Eva Lynne M. Marcos. “By promoting QR Ph in rural areas like Cabagan, we are empowering local businesses, streamlining payments, and ensuring everyone can participate in the growing digital economy.”
Mayor Christopher A. Mamauag and the BSP’s Eva Lynne M. Marcos (center) at the ribbon-cutting ceremony
In Cabagan, the success of Paleng-QR Ph Plus depends on the collaboration of local government units (LGUs), financial institutions, and residents. The BSP and DILG are working closely with the municipality to ensure smooth implementation, providing financial literacy campaigns and technical support for merchants and consumers.
Benefits for local markets and transport
The introduction of Paleng-QR Ph Plus in Cabagan’s public market is expected to have lasting positive effects on the local economy. Vendors who adopt QR Ph will offer customers a faster, more convenient way to pay, which can increase sales and enhance customer satisfaction.
For transport operators, QR code-based payments simplify fare collection, reduce cash handling, and minimize the risk of errors or theft.
Additionally, the program supports the government’s efforts to reduce physical contact in financial transactions, helping to prevent the spread of infectious diseases. As the country continues to recover from the effects of the COVID-19 pandemic, digital payments offer a safer alternative to handling cash, which can carry a risk of contamination.
Looking ahead
With the successful launch of Paleng-QR Ph Plus in Cabagan, Isabela, the BSP is optimistic about the program’s potential to improve the financial lives of Filipinos in rural areas.
By introducing digital payment solutions in public markets and transportation systems, the BSP is working to bridge the financial inclusion gap and foster a more resilient and modern economy.
As more residents, businesses, and financial institutions embrace the convenience of QR Ph, the vision of a truly digital Philippines is becoming a reality — one municipality at a time.
