In a vital step towards a cashless economy, the municipality of Bacnotan, La Union, has officially launched the Paleng-QR Ph Plus program at the Bacnotan Public Market last March 8, 2025.
Bacnotan Mayor Divina C. Fontanilla (second from right) and BSP La Union Manager Melody P. Hermosura (rightmost) lead the launch of Paleng-QR Ph Plus program at Bacnotan Public Market
The event, attended by Bacnotan Mayor Divina C. Fontanilla and Bangko Sentral ng Pilipinas (BSP) La Union Manager Melody P. Hermosura, marks the city’s commitment to promoting safer, more efficient digital transactions. Joining them in the launch were BSP Bank Officer Gomer C. Gomez and Bacnotan Vice Mayor Francis L. Fontanilla.
A project of the Bangko Sentral ng Pilipinas (BSP), the Paleng-QR Ph Plus initiative is designed to make everyday transactions more convenient and secure by promoting the use of digital payments through the national QR code system, QR Ph.
This program is also revolutionizing the way Filipinos transact by turning public markets into thriving hubs of digital payment innovation and integrating into local transportation hubs and other business establishments the idea of transacting via digital payments.
As a result, the program is expected to enhance both the ease of doing business and the safety of market transactions in Bacnotan and other regions adopting the initiative.
Paleng-QR PH Plus: Empowering local merchants with digital payments
During the event, GCash also helped the public open e-wallet accounts for QR Ph transactions
The Paleng-QR Ph Plus program was originally developed by the Department of the Interior and Local Government (DILG) in collaboration with the Bangko Sentral ng Pilipinas (BSP). It aims to foster greater use of digital payments — whether through e-wallets or mobile applications — across local markets and public transportation hubs.
With the success of the initial phase, the expanded Paleng-QR Ph Plus version now includes a broader range of participants, such as other business owners, local vendors, and additional forms of local transport not originally covered by the program.
For ordinary Filipinos, this means the convenience of making payments digitally for their daily transactions, eliminating the need to carry or withdraw cash. Digital transactions have the added benefit of reducing health risks associated with handling physical currency, especially in the wake of the COVID-19 pandemic.
The QR Ph initiative
Jointly launched by BSP and the payments industry, the QR Ph initiative aims to create a unified QR code standard that can be used across different banks and e-wallet providers. This interoperability makes digital payments more convenient for both merchants and consumers.
By using QR Ph, transactions can be seamlessly processed between different financial institutions, helping merchants accept payments from a wider customer base, regardless of their choice of bank or e-wallet provider.
To encourage broader adoption, the Paleng-QR Ph Plus program invites local government units (LGUs) to promote cashless transactions in their respective markets. Local officials are encouraged to establish partnerships with financial service providers (FSPs) to ensure the availability of QR Ph-ready payment systems.
As part of this initiative, LGUs like Bacnotan will also host “account opening days,” where market vendors, tricycle drivers, and other local merchants can open transaction accounts to begin accepting digital payments.
For those wondering how they can get involved, market vendors and business owners can look for program banners or posters that signify participating establishments. In addition, LGUs will help guide local vendors through the process of opening accounts by offering technical assistance and financial literacy programs.
BSP’s commitment to financial inclusion
A significant part of the Paleng-QR Ph Plus program is its focus on financial inclusion. For many small businesses and informal workers, the lack of access to formal banking systems has been a barrier to participating in the digital economy.
However, the BSP has made it easier for merchants to join by liberalizing the identification requirements for opening accounts. In cases where traditional IDs may be unavailable, barangay certification can be used as proof of identity. Additionally, the BSP has included the e-PhilID as an accepted form of identification, further expanding access to financial services.
At the launch, GCash, a major e-wallet provider, assisted local residents and merchants in opening e-wallet accounts, ensuring they can participate in the program. This partnership is crucial in making the transition to digital payments more seamless for Bacnotan’s local market community.
With more LGUs expected to adopt the Paleng-QR Ph Plus program in the coming months, the initiative has the potential to revolutionize how Filipinos conduct daily transactions. By integrating digital payments into the everyday lives of local communities, the program aligns with the BSP’s vision of a cashless society that is more inclusive, efficient, and secure.
The launch in Bacnotan is just the beginning of a nationwide movement toward a digital economy. As more municipalities join, the future of digital payments in the Philippines looks brighter, offering more opportunities for businesses and consumers alike to benefit from the convenience and security of cashless transactions.