The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) clarified that technical service providers (TSPs) are not currently required to register with the BSP, allowing BSP-supervised institutions (BSIs) to engage TSPs without a registration prerequisite. BSIs remain fully responsible for managing the risks arising from these arrangements, and the BSP may monitor TSP performance through the BSIs they serve. A TSP is defined as an entity providing technical or operational support to BSIs, typically covering services such as enabling form factors, data processing, information technology infrastructure support, authentication mechanisms, and interface solutions. The BSP distinguished TSPs from operators of a payment system (OPS), which are regulated by the BSP, noting that TSPs do not provide clearing and settlement services, do not handle or store funds’ value, and do not define, prescribe, design, control, or maintain a payment system’s operational framework. Accountability for TSP-related activities is reflected in BSP rules on outsourcing, operational resilience, information technology risk management, and merchant payment acceptance, and the BSP linked the role of TSPs to payments digitalisation objectives under the Philippine Development Plan 2023–2028.
Central Bank of the Philippines 2025-08-18
Central Bank of the Philippines clarifies technical service providers do not need to register and supervised institutions remain accountable for related risks
The Central Bank of the Philippines clarified that technical service providers (TSPs) are not required to register with the bank, allowing BSP-supervised institutions to engage TSPs without registration. These institutions remain responsible for managing risks from TSP arrangements, with the BSP monitoring TSP performance through the institutions they serve. TSPs focus on technical support rather than clearing and settlement services, distinguishing them from operators of a payment system.