The Philippines’ premier industry association of fintech startups and unicorns Fintech Alliance.PH welcomed the enactment of the Internet Transactions Act as an additional protective layer for consumers in the digital space, in line with the thrust of the industry organization to prioritize the safety and welfare of digital Filipino users.
On 05 December 2023, President Ferdinand R. Marcos Jr., signed R.A 11967 entitled “An Act Protecting Consumers and Merchants Engaged in lnternet Transactions,” creating for this purpose the Electronic Commerce Bureau, otherwise known as the Internet Transactions Act (ITA). The new law aims to boost and safeguard e-commerce transactions in the country and is a part of the administration’s legislative agenda aimed at building trust in e-commerce and ensuring the development and promotion of e-commerce in the country.
FinTech Alliance, with over 100 corporate members collectively generating over 95 percent of all fintech and digital financial transactions in the country, issued the statement after the signing of the bill into a law and in time with the rapid expansion of the country’s digital economy.
The annual e-Conomy Southeast Asia report named the Philippine digital economy as the fastest growing in Southeast Asia and is projected to be valued at $24 billion by the end of this year. Meanwhile, the forecast also points towards the digital economy growing to $35 billion by the end of 2025.
Fintech Alliance. PH Founding Chairman Lito Villanueva said that the development is an important step towards creating a digital and financial environment that puts customers at the center through monitoring and encouraging legitimate and safe online shopping activities.
“The fintech industry welcomes the swift passage and signing into law of the Internet Transactions Act. It will not only further promote consumer protection and financial education but will also set the standards and institutionalize a code of conduct within the eCommerce ecosystem,” said Villanueva.
“This is a critical component toward a sustainable and inclusive digital economy. We look forward to working with the Department of Trade and Industry (DTI) and Bangko Sentral ng Pilipinas (BSP) particularly on incentivising digital payments to increase adoption by businesses and consumers,” added Villanueva.
The organization expounded that such law is an important platform for e-commerce MSMEs and emerging players to gain and sustain public trust which will result in strengthened consumer patronage.
DTI Secretary Alfredo Pascual, one of the staunchest advocates of the law, also lauded the passage of the legislation as a critical development towards protecting online consumers.
“The Internet Transactions Act (ITA) is a landmark measure as it comes at a time when online selling and online buying is now our way of life. The Department expresses its gratitude to President (Ferdinand R.) Marcos Jr. for championing the Internet Transactions Act as one of the 20 priority bills of his administration. We are, likewise, grateful for the firm support of both Houses of Congress, particularly to the legislation’s main sponsors,” said Sec. Pascual.
In an official statement, Secretary Cheloy Garafil of the Presidential Communications Office (PCO) conveyed President Marcos’s enthusiastic support for the bill, emphasizing it as “the country’s commitment and readiness to accelerate its development and to embrace the digital economy.”
Fintech Alliance.PH continues to be a significant advocate and consultant for public and private sector affairs that involve e-commerce, digital banking, and the digital economy, and has participated in discussions and regulatory measures that have strengthened the position of the Philippine fintech sector in recent years.