Smart Hub and LandBank partner for BayadLoad

Published October 8, 2013

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Smart Hub, Inc., a subsidiary of Smart Communications, Inc. (Smart) and Land Bank of the Philippines have partnered to provide BayadLoad, a service that facilitates convenient, seamless, secure and accessible alternative payment channel to some 2.5 million kasambahay and about 1.8 million employers to pay for their mandatory monthly contributions to government agencies.

A memorandum of understanding will be signed by Smart Hub and Landbank on May 8 to formalize this milestone undertaking. This initiative is being pursued also in cooperation with USAID-Scaling Innovations in Mobile Money Project and Mercy Corps, an international development organization.

This payment service innovation is timely given the implementation on May 10 of Republic Act 10361, or the Kasambahay Law, that requires employers of domestic household help to remit monthly membership contributions to Pag-IBIG Fund, and premium payments to PhilHealth and SSS.

"With this new service, BayadLoad can be used for their life’s necessities such as provident, social, housing and health insurance coverage. It helps level the playing field in terms of social protection programs especially for those who don’t have access to the formal financial sector,” said Smart Chief Wireless Advisor Orlando B. Vea.

“This innovation in electronic payment services is transformative as it helps change the lives of our kasambahay and other workers by giving them opportunities to save for their future’s security,” said Landbank president and CEO Gilda Pico. "It is also an effective tool to decongest bank branches from the long queues and waiting time.”

BayadLoad is a separate mobile wallet exclusively for micro and low-value government payments that would eventually include services provided by other agencies.

Any kasambahay or employer could load their BayadLoad wallet at any of over one million retailers nationwide. It offers a convenient channel for employers of household helpers (with salaries of less than P5,000 per month) to pay their mandated share contributions monthly.

It addresses issues on tedious cash-in process given the difficulty of household helpers to leave the employer’s premises to do a physical cash-in especially when the employer is out during weekdays. Payment confirmation is as fast as an SMS. BayadLoad does not have expiry date and can be used exclusively for payments only.

Recurring payments to these three agencies can be done using SMS. Instantly, all premiums and membership contributions are credited to the payee agency in near real-time via end-of-day settlement to be done by LandBank. Smart Hub, meanwhile, will be charging a convenience fee in accordance with the Joint Department Administrative Order 10-01.

This alternative payment channel will only be made available to the public upon approval of the Bangko Sentral ng Pilipinas. [END]