THE Bangko Sentral ng Pilipinas (BSP) is considering the removal of one-time password (OTP) for digital bank transactions, an official said.
BSP Deputy Governor Elmore Capule said OTPs are being abused and sometimes being used for fraud. He said it started to be less effective because technological changes have made it vulnerable to abuses and scams.
“It might not be effective at a certain point. Parang you have a technology which is effective, parang medicine, but over time nag-e-evolve. Ang dami nag-e-evolve,” Capule told reporters.
He added that BSP is now looking at new technologies to secure digital bank transactions and they also urge banks to also study a future-proof ready way that can replace OTPs.
“Banks or institutions should not be happy where they are right now. They have to look at the future because it’s evolving,” he said.
“We are looking at behavior system, things like that. If you can use biometrics, things like that. We want it to be future proof,” Capule added.
He clarified though that removing OTPs may take time and it will not happen in the near future.
Zero transfer fees
The BSP, meanwhile, is still pushing for free or zero transfer fees for digital bank transactions. Currently, transfer fees of PESONet and InstaPay for individuals range from P8 to P25 per transaction.
BSP Deputy Governor Mamerto Tangonan revealed that some banks want to delay this policy saying they are not ready to make lower transfer fees of bank transactions which include sending money from one account to a another account or e-wallet.
“[Banks said] Our business model is not so conducive to that or they say ‘okay we see it coming but we’re not ready yet, give us a bit more time.’ We’re trying to see a balance as much as possible we can bring most of the industry participants towards that. That’s what we are discussing with them,” Tangonan said.
He said if transfer fees are decreased, then it can attract more people… and in the long run, it will also benefit banks as more people will be using the banks’ services.
“The goal is clear. It got to be either low or if not totally free… The most successful instant payments are those where the transaction costs are very low,” he added.
There is not timeline yet when banks will totally agree to the BSP statement on lowering transfer fees or making it totally free. (ABS-CBN News)
