SEC clears BancNet-PCHC merger

THE SECURITIES and Exchange Commission (SEC) has approved the merger of BancNet, Inc. and Philippine Clearing House Corp. (PCHC), bringing together two of the biggest players in the country’s payments ecosystem.

BancNet is the surviving entity in the merger authorized by the Bangko Sentral ng Pilipinas (BSP) earlier this year, the companies said in a joint statement on Tuesday. Effective June 1, the merged entity shall operate under the corporate name Payments Network of the Philippines, Inc. (PNPI).

BancNet and PCHC are identified by the central bank as Operators of Designated Payment Systems under the National Retail Payments System framework.

BancNet operates InstaPay, a real-time, low-value electronic fund transfer facility for transactions up to P50,000 that is mostly used for remittances and e-commerce.

PCHC handles PESONet, which is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks, as well as the Philippine Domestic Dollar Transfer System and Payment-versus-Payment.

“The merger marks a significant milestone in the continued modernization and strengthening of the Philippine payments ecosystem, initiated by the BSP. It unifies the country’s leading payment and clearing switch operators into a single, stronger, and more resilient entity, better positioned to deliver safe, reliable, and efficient payment services for the benefit of consumers,” they said.

“The merger is expected to enhance operational efficiencies, promote greater interoperability, and accelerate innovation in digital payments.”

The name BancNet will be the brand name for PNPI’s automated teller machine network, while PCHC will refer to its check clearing operations.

Details of the transition and integration of the two companies will be announced as they become available.

“The merger represents a transformative step toward a more integrated and future-ready national payments system,” said BancNet Chairman Nestor V. Tan, who is also president and chief executive officer of BDO Unibank, Inc., the country’s biggest bank in asset terms. “By combining the strengths and expertise of BancNet and PCHC, PNPI will be in a stronger position to support BSP’s digital payments transformation agenda for the country and deliver greater value to banks and other financial institutions, businesses, and consumers.”

“PNPI will enhance the safe, reliable, and efficient processing of electronic payment transactions and clearing services that are vital to the country’s financial system and our broader economy,” said PCHC Chairman Joseph A. Gotuaco. “PNPI will continue to work closely with regulators, participating financial institutions, and industry stakeholders in advancing secure, inclusive, and interoperable payment systems for the Philippines.”

The combined value of InstaPay and PESONet transfers amounted to P10.388 trillion in the first four months of 2026, up 45.38% from the P7.145 trillion seen in the year-ago period.

The volume of transactions made through the two payment gateways more than tripled (225.1%) year on year to 2.721 billion in the period from 837.118 million previously.

The central bank wants digital payments to make up 60%-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.

In 2024, online payments made up 57.4% of the volume and 59% of the value of the country’s total monthly retail transactions, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. — Bettina V. Roc