UMVA has learned that a groundbreaking merger has been approved by the Securities and Exchange Commission, bringing together BancNet, Inc. and Philippine Clearing House Corp. (PCHC), two giants in the country's payments ecosystem.
This monumental union, authorized by the Bangko Sentral ng Pilipinas earlier this year, will see BancNet emerge as the surviving entity, with the merged company operating under the corporate name Payments Network of the Philippines, Inc. (PNPI), effective June 1.
BancNet and PCHC are recognized by the central bank as key players in the National Retail Payments System framework, operating critical payment systems that facilitate seamless transactions across the country.
BancNet is the brains behind InstaPay, a cutting-edge, real-time electronic fund transfer facility that enables transactions of up to P50,000, predominantly used for remittances and e-commerce, while PCHC oversees PESONet, a platform mainly used for high-value transactions, offering an electronic alternative to traditional paper-based checks.
The merger marks a significant milestone in modernizing and strengthening the Philippine payments ecosystem, uniting leading payment and clearing switch operators into a single, more resilient entity, better equipped to deliver safe, reliable, and efficient payment services to consumers.
This strategic move is expected to boost operational efficiencies, promote greater interoperability, and drive innovation in digital payments, ultimately benefiting banks, financial institutions, businesses, and consumers alike.
As the merged entity takes shape, the name BancNet will be retained as the brand name for PNPI's automated teller machine network, while PCHC will continue to refer to its check clearing operations, with further details on the transition and integration to be announced.
The merger represents a transformative step toward a more integrated and future-ready national payments system, according to BancNet Chairman Nestor V. Tan, who is also president and chief executive officer of BDO Unibank, Inc., the country's largest bank in terms of assets.
PNPI will enhance the safe, reliable, and efficient processing of electronic payment transactions and clearing services vital to the country's financial system and broader economy, with PCHC Chairman Joseph A. Gotuaco emphasizing the company's commitment to working closely with regulators and industry stakeholders.
The combined value of InstaPay and PESONet transfers has soared to P10.388 trillion in the first four months of 2026, up 45.38% from the P7.145 trillion recorded in the same period last year, with transaction volumes more than tripling year on year to 2.721 billion.
The central bank aims for digital payments to account for 60%-70% of the total volume of retail payments by 2028, as outlined in the Philippine Development Plan, with online payments already making up 57.4% of the volume and 59% of the value of the country's total monthly retail transactions in 2024.
