The Philippines will receive the first Mojaloop-enabled, including instant payment system

As IIPS, Higala will serve as a financial highway connecting savings banks, rural banks and microfinance institutions that are currently excluded from payment networks due to high switching and connectivity costs. Although there are 400 rural banks in the Philippines, only 18 are currently part of InstaPay, depriving many Filipinos of the benefits that modern banking technologies can provide.

Although there are 400 rural banks in the Philippines, only 18 are part of InstaPay. This highlights a major challenge: the lack of interoperability between these banks. As a result, the full potential of financial inclusion remains largely untapped, depriving many Filipinos of the benefits that modern banking technologies can provide.

“Higala will help modernize our country’s digital financial infrastructures and enable the participation of financial institutions across our network. Our goal is to make banking more inclusive, especially for the underserved populations who have limited access to traditional banking services,” Higala President and CEO Vice Catudio said.

Higala promotes inclusion by reducing the cost of real-time payments, which helps financial institutions price their instant payments appropriately. It also aims to provide inclusive financial solutions for the underbanked and enable merchants to quickly accept digital payments.

“Through Higala’s open payments platform and suite of solutions, we will enable new entrants to aggressively develop and market innovative payment services for both consumers and merchants,” Catudio said. “This includes integrating solutions such as regulatory technologies such as e-KYC and AML.” “TF monitoring, AI-based risk detection and management, bank micro-ledger, payment hub enabling instant fund transfer between participating banks, and a global transaction gateway for remittances,” he adds.

Higala is also developing a core instant payment technology that can support financial institutions of all sizes and transform banks into digital banks through white label app services.

Sustainable development
“At Talino, we are committed to sustainable development implementation that benefits all stakeholders, especially the unbanked,” said Winston Damarillo, CEO of Talino. “With Talino and Chemonics providing financing to Higala, we are combining the impact of venture investments and global goodwill to extend the benefits of financial inclusion to segments that need it most.”

“We are excited to embark on a new journey with Higala, a testament to our commitment to innovation and financial inclusion in the Philippines and other dynamic markets around the world. “Higala in the Philippines embodies our vision of affordable, real-time transactions accessible to all Filipino communities,” said Jamey Butcher, President and CEO of Chemonics.

The first deployment of Mojaloop in Asia
Higala uses the open payments platform of the Mojaloop Foundation, a non-profit organization committed to promoting financial inclusion with its open source software Mojaloop. With Mojaloop’s open payment framework, Higala enables seamless connectivity between various financial institutions including banks, institutions, payment gateways, merchants and the central bank. This approach improves the affordability and accessibility of financial transactions.

“With the groundbreaking launch of open source software Mojaloop in Asia through our collaboration with Talinos Higala, the Mojaloop Foundation reaffirms its commitment to breaking down barriers and empowering communities through financial inclusion. Together we are not only revolutionizing payment systems; “So are we.” Unlocking opportunities, fostering resilience and building a future where access to finance knows no boundaries,” said Paula Hunter, executive director of the Mojaloop Foundation.

“We want to ensure everyone is fully banked by lowering the barrier to obtaining a bank account, reducing the frictional costs of digital payments, encouraging merchants to accept them, and enabling all financial institutions to serve their constituents, especially in rural areas, to make these available to banks,” Damarillo said.

Backed by BSP and industry leaders
BSP Deputy Governor Mamerto E. Tangonan said: “The BSP supports continued efforts to improve the efficiency of the national payment system and contribute to the modernization of the Philippines’ digital payment infrastructure as part of our ongoing efforts to attract more users to the digital payment system to win.”

Tangonan added: “The adoption of modern technologies such as artificial intelligence, machine learning and compliance with global standards such as ISO 20022 can help payment service providers offer new services, improve customer experience and make digital transactions more secure.”

In addition to BSP, Higala’s partners and collaborators include Rizal Commercial Banking Corporation, Xendit, FinTech Alliance.Ph and Rural Bankers Association of the Philippines.

“We are committed to inclusivity, affordability and the innovative approach to transaction management and processing. Higala offers efficiency and equity to fully support the country’s move towards full financial inclusion,” Catudio said.