THE BANGKO SENTRAL ng Pilipinas (BSP) has released guidelines for operators of payment systems’ (OPS) application for merchant acquisition licenses (MAL).
All OPS engaged in or intending to engage in merchant acquisition activities are required to obtain authority to do so from the BSP in line with Republic Act No. 11127 or the National Payment Systems Act and BSP Circular No. 1198 released in July last year, which implements the regulatory framework for merchant payment acceptance activities.
Meanwhile, banks and electronic money issuers-nonbank financial institutions that intend to engage in merchant acquisition as part of their normal or allowed business operations need not apply for a separate license.
Under the guidelines outlined in BSP Memorandum No. M-2025-002 dated Jan. 14, all MAL applications and related communications should be done via e-mail with the BSP Payments Supervision and Licensing Department (PSLD).
The guidelines include the prescribed formats for MAL application submissions of OPS, including the related documentary requirements.
The application period has three phases, starting from the determination of the applicant’s eligibility for a MAL, and then the evaluation of the license application, and lastly, the license issuance.
Among the minimum documentary requirements for MAL applications are a business plan, which should include: an overview of the company, including its business model and operational network; profile of the firm’s target markets or clients; proposed products or services and details on the systems supporting these, as well as transaction or process flows; pricing mechanisms and fees; and implementation plans, among others.
Companies should also provide proof of financial capacity, the BSP said. If the average monthly value of collected funds transferred to merchants in the applicable period is less than P100 million, the minimum required capital is at P5 million. For funds worth P100 million and above, firms must put up at least P10 million in capital.
For the evaluation phase, the BSP said firms must submit documents on their compliance with fitness and propriety requirements; risk management policies and procedures covering critical areas like information technology and security, business continuity and operational risk management; and merchant management and protection policies and procedures, including redress mechanisms.
“To arrive at an informed decision, the PSLD may have several requests for information and/or documents/clarifications aside from the abovementioned requirements depending on the completeness and clarity of the responses submitted by the applicant,” the BSP said. “It may also conduct onsite verification of the documents and/or representations submitted.”
“The applicant shall report to PSLD if there are material changes on the information provided during the application process (e.g., organizational restructuring, substantial changes in key management personnel, material variations in the business model/activities),” it added.
Once the MAL is approved, an OPS must pay a licensing fee ranging from P25,000 to P60,000 and submit proof of payment to the BSP. — L.M.J.C. Jocson
