The financial technology (fintech) sector in the Philippines is booming. From 2021 to 2024, the number of fintech companies increased by over 50%, from 216 to 335, according to figures from Startup Genome* and Fintech News Philippines.**

As tech founders and startups come pouring in, there’s one requirement that can make or break their venture: registration as an operator of payment system (OPS).

What exactly is an OPS and why is the Bangko Sentral ng Pilipinas (BSP) requiring it? And are non-fintech companies exempted?

Let’s get into it.

Content Summary

✅ The National Payment Systems Act empowers the BSP to create regulations that foster trust and stability in payment systems in the country.

✅ Any entity offering an e-wallet, payment gateway, remittance service, or even a point-of-sale solution is considered an operator of payment system.

✅ An OPS engaging in merchant acquisition activities must specifically apply for a merchant acquisition license.

✅ Businesses that are not yet cleared to legally operate in the Philippines cannot register as an OPS.

Why it matters to register as an OPS

According to the National Payment Systems Act (R.A. 11127), operators of payment systems must be duly registered with BSP.

Any entity offering an e-wallet, payment gateway, remittance service, or even a point-of-sale solution is considered an operator of payment system.

BSP Circular No. 1049 (Series of 2019) states that an OPS performs any of the following functions:

• Maintains a platform that enables payments or fund transfers, regardless of whether the source and destination of accounts are maintained within the same or different institutions.
• Operates systems or networks that enables payments or fund transfers to be made through the use of a payment instrument.
• Provides a system that processes payments on behalf of any person or the government.
• Performs such other similar activities, as may be determined by the Monetary Board.

Are merchant acquisition activities covered?

According to Circular No. 1198 (Series of 2024), an OPS that intends to engage in merchant acquisition must secure a Merchant Acquisition License (MAL).

Additionally, an OPS that’s granted MAL will be classified specifically as OPS-MAL and considered compliant with all the regulations of OPS registration.

Here’s how BSP defines some of the key terms relating to MAL, based on the Circular:

• Merchant acquisition: “The service of accepting and processing payment transactions on behalf of a merchant under an agreement, resulting in a transfer of funds to the merchant.”
• Merchant payment acquisition activities (MPAA): “Refers to the set of services provided to a merchant to receive payment for sale of goods and/or services. In general, services include merchant acquisition; providing the means to accept various payment instruments and collect, secure, transmit and process payment information; and providing support services related to the payment.”

How to get an OPS license from the BSP

Below is a broad overview of the registration process. Take note that BSP may request additional documents, depending on the nature of your business activities.

1. Confirm you qualify as an OPS

First, do a self-check. If your business involves payment facilitation, you probably qualify.

If your company does any of the following then you’ll need to be registered as an OPS or OPS-MAL:

• Handles payments between users or merchants
• Provides digital wallets or fund transfer tools
• Operates a remittance or cash-in/cash-out network
• Offers payment gateway or merchant acquisition services

2. Confirm business registration status

The OPS application registration form will ask for details on your business structure (e.g. sole proprietorship, partnership, corporation, etc.)

Make sure that you are already registered with relevant government agencies (e.g. Securities and Exchange Commission), so you can provide copies of your incorporation documents.

Otherwise, you’ll need to first make sure you are legally permitted to do business in the Philippines.

3. Prepare your OPS documents

Next, you’ll need to prepare the following:

• BSP Form 1 (can be found in Annex 1 of Circular 1049)
• Business plan detailing your payment services and target market
• Business registration documents (such as a valid business permit and SEC Certificate of Registration)
• Additional requirements for OPS-MAL:
  • Merchant acquirers are also required to provide proof of capital (minimum of ₱5 million)
  • customer due diligence policies
  • Transaction monitoring
  • Dispute resolution process

4. Submit your application to BSP

As of writing, BSP’s OPS online registration portal is down. For now, registrations can be sent to [email protected].

A Provisional Certificate of Registration (PCOR) will be provided after submission confirmation.

PCOR validity is usually around three months from the date of issuance — unless otherwise stated. On or before the expiration of the PCOR, you’ll be informed about the result of OPS registration.

5. Pay the fees

Once your OPS registration is approved, you’ll be asked to settle a ₱20,000 fee to secure your Certificate of Registration from BSP. Banks and electronic money issuers are exempt.

Mere submission of application requirements should not incur any fee.

6. Await final approval

Once the BSP confirms your payment and does a final review of all documents, you’ll receive your final COR. This officially recognizes your business as a registered payment system operator in the Philippines.

Ongoing due diligence after OPS registration

To maintain their OPS license, registered entities must fulfill these reporting obligations:

• Report significant changes to the BSP (e.g., company name, officers, ownership structure)
• Submit routine transaction and compliance reports
• Maintain strong internal controls to protect against cybersecurity threats and other potential risks
• Compliance with policies relating to anti-money laundering and countering the financing of terrorism (AML/CFT)
• Additional reporting for OPS-MAL:
  • Quarterly transaction reports as it relates to MPAA
  • Annual audited financials
  • Notice of change in average monthly value of collected funds to be transferred to merchants that would change license category (as needed).

All in all, there’s quite a bit of compliance work to do after registering as an OPS.

But with official recognition from BSP, you’ll be in a strong position to boost legitimacy with potential investors and build customer trust and confidence.

Secure your OPS license with Loft

If you’re building a payment-enabled product or platform in the Philippines, getting your OPS license isn’t just a regulatory box to tick — it’s a strategic business advantage.

Do you have more questions about OPS registration with BSP? Let’s hear them!

And if you’re looking to register your business in the Philippines without going through all the hassle yourself, we can definitely help.

Send a quick message using the form below.

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Footnotes:

* Ecosystem Startup Genome | Building world-class startup ecosystems

** Fintech Philippines Report 2024 – Fintech News Philippines