MICROCAPITAL BRIEF: Land Bank of Philippines Announces Bayadload E-Payment Service for Mandatory Government Contributions

The Land Bank of the Philippines (LBP), a government bank specializing in serving farmers and fishermen, has announced that it will partner with Smart Hub, a subsidiary of Filipino telecom Smart Communications, to offer a new e-payment channel called “BayadLoad” to allow household workers or their employers to make mandatory government contributions using their mobile phones. This comes in the wake of the “Kasambahay” Law (Household Worker Law), which was passed in 2012 and requires employers of household workers to make monthly payments to the Home Development Mutual Fund (Pag-IBIG Fund), Philippine Health Insurance Corporation (PhilHealth) and the Social Security System (SSS).

According to LBP Chief Executive Officer Gilda Pico, the service is expected to reduce congestion in bank branches.

The BayadLoad service will be compatible with Smart, Talk’N Text and Sun phone service providers and will allow workers to make payments using short message service (SMS) text messages without being charged an SMS fee by their phone service provider.

The service is expected to be made commercially available in May 2013 pending final approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines.

By Makai McClintock, Research Associate

Sources and Additional Resources

FutureGov Article, “Philippine Gov’t Bank to Enable E-Payment for Household Workers,” http://www.futuregov.asia/articles/2013/may/06/philippine-government-bank-launch-e-payment-channe/?buffer_share=41c43&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer%253A%252BJvowens%252Bon%252Btwitter

MicroCapital, July 5, 2012, “MICROCAPITAL BRIEF: Indonesia: Banks Introduce Rabu Microsavings Program at Indonesian Banking Expo (IBEX),” https://www.microcapital.org/microcapital-brief-indonesia-banks-introduce-rabu-microsavings-program-at-indonesian-banking-expo-ibex/

MicroCapital, May 7, 2012, “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) May Broaden ‘Special’ Program for Distressed Rural Banks as 3rd Straight Quarterly Rise Brings Bad Loan Ration to 10%,” https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-may-broaden-special-program-for-distressed-rural-banks-as-3rd-straight-quarterly-rise-brings-bad-loan-ration-to-10/

MicroCapital, February 21, 2012, “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Tightens CAMELS, Other Requirements for Banks Offering Agricultural Microfinance Loans in the Philippinse,” https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-tightens-camels-other-requirements-for-banks-offering-agricultural-microfinance-loans-in-the-philippines/

MicroCapital, November 3, 2010, “MICROCAPITAL EVENT: Mobile Money Transfer Asia Pacific Conference and Expo, Manila, Philippines, January 17-20, 2011”, https://www.microcapital.org/microcapital-event-mobile-money-transfer-asia-pacific-conference-and-expo-manila-philippines-january-17-20-2011/

MicroCapital, October 6, 2009, “MICROCAPITAL EVENT: Mobile Money Transfer (MMT) APAC Conference & Expo, December 8-9, 2009, Manila, Philippines, Sponsored by Obopay”, https://www.microcapital.org/microcapital-event-mobile-money-transfer-mmt-apac-conference-expo-december-8-9-2009-manila-philippines-sponsored-by-obopay/

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