The Department of the Interior and Local Government (DILG) is urging local government units (LGUs) to adopt electronic payment and collection systems (EPCS) as a safer, more efficient alternative to cash transactions.
This push supports President Ferdinand Marcos Jr.’s nationwide digital transformation agenda, aiming to modernize government operations. In a recent memorandum circular, the DILG encouraged LGUs to utilize EPCS for collecting local taxes, fees, and other charges, aligning with Executive Order No. 170, s. 2022, which mandates the use of digital payments in government transactions.
The department highlighted that digital payments bring enhanced transparency, greater efficiency, and increased convenience for the public. It recommended LGUs provide secure, accessible, and user-friendly digital payment options by partnering with authorized service providers, including government banks.
Moreover, the DILG emphasized that these efforts should comply with the National Retail Payment System Framework and uphold data privacy standards under the Data Privacy Act. LGUs are also advised to establish clear processes for issuing electronic invoices and billing statements following guidelines set by the Commission on Audit and the Bangko Sentral ng Pilipinas.
While promoting digital payment adoption, the DILG clarified that LGUs must continue accepting cash and other traditional payment methods. The department further encouraged local governments to enact ordinances and policies that support the broader implementation of electronic payment acceptance.
By modernizing payment systems, LGUs can improve service delivery and align with the country’s vision for a more digital government.