June 29, 2021
Senator Juan Edgardo “Sonny” Angara
Senate Committee on Banks, Financial Institutions and
Senate of the Philippines
Re: SBN 1764
On behalf of the Trustees , Officers and Members of the Laban Consumer Inc., ( LKI ) a non-profit, non-stock registered entity , we respectfully submit our suggestions and recommendation on SBN 1764.
We are of the opinion that our recommendations may increase the number of consumers to open and maintain bank accounts and are future users of the services of payment service providers and engage in cashless payment transactions.
- LKI proposes that moneys in the possession of the Payment Service Providers should enjoy insurance against all risks of loss, whether total or in part. The insurance shall results in bringing confidence to the security of the moneys of consumers when in the possession of the payment service providers.
- Related to Item 1, the moneys when in the possession of the payment service providers should earn interest income. This proposal will entice consumers to transfer money in the wallet of the payment service providers but knowing fully well that it will earn interest income.
- Payment service providers should be prohibited from collecting transaction fees from the consumers. Any fees that payment service providers could earn should come from banking institutions and remittance centers which will do business with the payment service providers.
- There should be a comprehensive and intensified information sharing and dissemination of the basics and fundamentals of digital payment platforms that are easily understood by the target consumers. It is expected that the regulators will develop and implement such information campaign. Consumer associations across the country, when given the adequate training needs on the merits of digital payment platforms, may be tap to help in the information campaign. .
Thank you very much.
Very truly yours,
Atty. Victorio Mario A. Dimagiba, AB, LLB, LLM