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The Bangko Sentral ng Pilipinas (BSP) has confirmed that the Philippines is making significant strides in linking up with Project Nexus, a standardized multilateral network designed to connect domestic instant payment systems globally.
According to Deputy Governor Mamerto Tangonan, the central bank is currently focusing on building and testing the system’s infrastructure. He also noted that the Philippines is advancing faster than some of its peers.
‘A Bit Ahead’: Establishing the Singapore Entity
Tangonan revealed that the operational groundwork is already well underway.
“We are a bit ahead of participating central banks because we have already hired the key executives and established the company in Singapore. They are now running it, and we’ve selected a technology operator, so the platform is currently being built.”
Mamerto Tangonan, Deputy Governor, Bangko Sentral ng Pilipinas
What is Project Nexus
Initiated by the Bank for International Settlements (BIS) Innovation Hub, Project Nexus aims to standardize the way different countries’ instant payment systems “talk” to each other.
- The Goal: To replace the complex web of bilateral agreements with a single, unified network.
- The Target: Tangonan shared that the platform is expected to go live by mid-2027.
Linking Instapay to the World
Once operational, Project Nexus will enable 24/7, fast, low-cost, and transparent money transfers between the participating nations. The initial wave includes:
- Philippines (InstaPay)
- Malaysia (DuitNow)
- Thailand (PromptPay)
- Singapore (PayNow)
- Indonesia (BI-FAST)
- India (UPI)
Economic Impact
The BSP views this connectivity as crucial by citing the massive growth of digital payments locally:
- Transaction Volume: In 2025, electronic fund transfers hit a record ₱24.74 trillion, a 42% increase from 2024.
- GDP Share: The combined value of e-payments now accounts for roughly 90% of the Philippine Gross Domestic Product (GDP).
“I want to be clear about why [cross-border connectivity] is important for our country. Through Project Nexus, we are linking InstaPay with the fast payment systems of five other major economies in the region.”
Mamerto Tangonan, Deputy Governor, Bangko Sentral ng Pilipinas
Recent BSP News
In efforts to combat scams and related offenses, the BSP signed information-sharing agreements with three government agencies, namely the NBI, CICC, and SEC, to allow lawful sharing of confidential financial account information to support investigations related to the said fraudulent activities.
On the other hand, it issued a memorandum urging all regulated entities to conduct appropriate due diligence, exercise heightened caution and vigilance, and apply enhanced scrutiny when dealing with VASPs.
In terms of digitalization, the BSP confirmed that it will soon release a shortlist of contenders for four new digital banking licenses. It also emphasized that the entry of foreign-backed players could introduce much-needed competition to the country’s growing digital banking industry.
This article is published on BitPinas: BSP: Philippines ‘Ahead’ in Race to Connect InstaPay with World’s Payment Systems
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