REUTERS

TRANSACTIONS that went through the Bangko Sentral ng Pilipinas’ (BSP) Peso Real-Time Gross Settlement (RTGS) Payment System reached P601.32 trillion in 2025, marking its strongest performance since its launch in 2021.

The value of transactions processed by the Philippine Payment and Settlement System (PhilPaSS) Plus grew by 15.84% to a record high from P519.08 trillion in 2024, the BSP said in its maiden Peso RTGS Payment System report released this week.

Transaction volume also increased by 8.96% to an all-time high of 1.73 million in 2025 from 1.59 million in the prior year.

The BSP said these show “expanding participation and deepening reliance on the system.”

“The year 2025 was marked by further infrastructure enhancements and strengthened resilience, sustaining the growth of economically critical large-value funds transfers, which were safely and efficiently settled through the Peso RTGS Payment System operated by the BSP,” the central bank said.

It attributed the increase in transaction volume to flows related to dollar-peso and government securities (GS) trading, “reflecting a mix of financial market and monetary policy developments, which include exchange rate movements mostly in favor of USD, large GS issuances, and improved liquidity following the BSP’s reserve and policy rate reductions.”

“Meanwhile, the increase in value stemmed from higher bank placements in the BSP’s Overnight Deposit Facility and the quicker turnover of wholesale funds enabled by its enhanced ISF (intraday settlement facility).”

Average daily volume processed via PhilPaSS Plus reached 7,000 valued at about P2.47 trillion. “Meanwhile, daily availment of the ISF averaged P50.60 billion, underscoring the facility’s effectiveness in addressing intraday liquidity needs within the payment system and ensuring the smooth processing of high-value transactions.”

“[B]etween 2021 and 2025, PhilPaSS Plus consistently settled annual transaction values equivalent to 20-30 times the Philippine gross domestic product (GDP), highlighting its systemic importance to the financial sector.”

The central bank said the volume of transactions recorded in the Peso RTGS Payment System has consistently been driven by customer or corporate payments, which account for some 40% of the total

Meanwhile, in terms of value, flows related to the BSP’s monetary operations and peso-dollar trades have been the dominant contributors, accounting for about 78% or P433 trillion annually. Client payments and transactions between participating financial institutions have been among the top contributors in recent years.

The Peso RTGS system also achieved a 99.96% efficiency in 2025, reflecting an average of less than a second speed of settlement and high availability, the BSP said. This was also above the 95% acceptable rate.

While the system encountered connectivity issues encountered in the first half of the year, it achieved 100% efficiency in the last seven months, the data showed.

“This system performance demonstrates operational reliability amidst an uptrend in settlements volume and value,” the BSP said.

“Aside from keeping PhilPaSS Plus in top operating condition, the BSP streamlined its standard operating procedures for local holidays and work suspensions by delivering essential central bank functions, encompassing currency withdrawal and large-value settlement services, as well as open market operations, even during government work suspensions and other disruptive incidents. This initiative bolstered the certainty, reliability, and availability of central bank support, contributing to increased wholesale funding flows, which are vital for the conduct of major economic activities.”

PhilPaSS Plus also onboarded 16 new institutions in 2025 — 12 rural/cooperative banks, two thrift banks, as well as two electronic money issuers. This brought total participants to 265.

“By welcoming new participants, including nonbanks, and deepening engagement through forums and consultations, the BSP has reinforced inclusivity and shared responsibility in shaping the payment system’s future,” BSP Senior Assistant Governor for Financial Markets and Peso RTGS Management Committee Chairperson Edna C. Villa said in the report’s foreword.

“Ahead lie transformative milestones — extending operating hours to near-continuous availability, harmonizing local payments data with global standards, and building cross-border interlinkages. These initiatives will not only enhance domestic markets but also connect our economy more seamlessly to the world, ensuring that remittances, investments, and trades flow through channels that are efficient, transparent, and accessible.”

Ongoing initiatives also include further enhancements to the ISF via the introduction of a daylight credit facility, the development of a policy on participants’ business continuity plans, and digital transformation projects like its Robotics Process Automation Project that streamlines and automates key operational processes, including PhilPaSS Plus User Registration, Virtual Private Network Connectivity, and Smart Card Renewal/Replacement. — A.M.C. Sy

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