How to Become a BSP-Licensed Operator of Payment Systems (OPS) in 2026

A practical guide to BSP OPS registration and the Merchant Acquisition License: who needs it, what to file, what it costs, and what changes after you’re licensed.

By: Phyra Templeton

Merchants

Opportunities

Payment Gateway

Merchant Services

Compliance

• An Operator of Payment Systems (OPS) is any business or Payment Service Provider (PSP) that enables, processes, routes, or manages electronic payments between two or more parties. Under the National Payment Systems Act (RA 11127), these businesses must register with the BSP.
• Basic OPS registration under Circular No. 1049 requires a business plan, SEC documents, and an application submitted to the BSP's Payments Supervision and Licensing Department (PSLD) with a fee of ₱20,000.
• If your platform collects and transfers funds to merchants, you also need a Merchant Acquisition License (MAL) under Circular No. 1198 (procedures in Memo M-2025-002, January 2025).
• The MAL requires a minimum capital of ₱5–10 million and a license fee of ₱25,000–₱60,000, depending on transaction volume.

After registration, expect ongoing obligations: AML compliance, annual audited financials, and merchant settlement within two business days.

 

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The Philippines is one of Southeast Asia’s fastest-developing digital payments markets, with its fintech sector growing by over 50% between 2021 and 2024. And as of August 2026, the BSP had recognized 314 registered Operators of Payment Systems across banks and non-bank entities, with new registrations coming in each quarter.

If your business enables, routes, or processes payments in the Philippines, whether you’re a startup, an e-commerce platform, or a foreign entity serving Filipino customers, there’s a good chance you need to be on that list. 

This guide explains who needs these licences, how the application process works, what documents you'll need, and how many growing fintechs reduce regulatory delays.

 

What is an Operator of Payment Systems (OPS)?

Under Republic Act No. 11127, the National Payment Systems Act, an OPS is any entity that: 

• Maintains a platform or system enabling payments or fund transfers.
• Processes payments on behalf of any person or the government.
• Performs any other similar activity the Bangko Sentral ng Pilipinas (BSP) Monetary Board may determine.

This definition is intentionally broad, with payment gateways, aggregators, facilitators, merchant acquirers, e-wallet providers, independent ATM operators, digital billers, and cross-border remittance platforms all falling within scope. 

Basically, if your product moves money and isn’t purely internal to a single bank or EMI, registration is very likely required.

Note: foreign companies are not exempt. If you’re incorporated abroad but serving Filipino merchants or consumers, the BSP expects you to register even without a domestic office in the Philippines.

 

Do you actually need to register?

Start with a self-assessment. BSP Circular No. 1049 and Memorandum No. M-2019-023 requires entities to determine whether they are OPS before filing anything. The BSP does not decide for you.

Ask one question: Does my platform, at any point, enable, process, or route a payment or fund transfer on behalf of another person? If yes, registration is likely a must.

If you’re still unsure, contact the BSP at bspmail@bsp.gov.ph 

 

How to register as a BSP OPS: New three-phase process

In July 2026, the BSP formalized a new three-phased evaluation for OPS registration, replacing the previous online-portal approach. 

The OPS Registration Process

 

 

If you collect merchant funds, you need an MAL

If your payment business accepts and processes payments on behalf of merchants and then transfers those funds to them, you may need a Merchant Acquisition License (MAL) from the BSP.

In simple terms, merchant acquisition involves handling funds that belong to merchants, not to your own business. Because these transactions involve holding, processing, and settling third-party funds, the BSP requires licensed operators to have the proper governance, risk management, settlement safeguards, and consumer protection measures in place.

That is where the MAL comes in.

 

How the MAL application works

The MAL application, similar to OPS registration, follows three phases starting with determining whether your business model falls within the scope of merchant acquisition and ending with the issuance of the license.

 

How Much Capital Do You Need?

Your minimum capital requirement depends on the average monthly volume of merchant funds handled by the operator:

• Below ₱100 million in average monthly merchant funds → ₱5 million minimum capital
• ₱100 million or more in average monthly merchant funds → ₱10 million minimum capital

This requirement is intended to ensure that an operator has sufficient financial capacity to support its merchant-acquiring activities and manage the risks associated with handling merchant funds.

One important point: an OPS that is granted an MAL is automatically deemed compliant with the basic OPS registration requirements, meaning the MAL effectively covers both the merchant-acquiring authorization and the underlying OPS registration requirement.[3]

If the MAL application is denied, the applicant must wait six months before submitting a new application.[4]

The takeaway: If your payment business does more than simply provide the technology to process transactions—particularly if you receive, hold, process, or settle funds on behalf of merchants—you need to determine whether your activities fall under the BSP's merchant acquisition framework before launching or expanding your operations.

 

OPS Registration vs. MAL: At a glance

 

Ongoing obligations after registration

Getting registered as an OPS is only the beginning. Once licensed, operators must meet ongoing BSP and AMLC requirements, including:

• AMLC enrollment. OPS are covered persons under the Anti-Money Laundering Act and must register with the AMLC, appoint a Compliance Officer, and maintain systems for filing Covered Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs).
• Significant change reporting. Material changes in ownership, leadership, business model, or payment acceptance methods must be promptly reported to the BSP.
• Financial and volume reporting. All OPS must submit annual audited financial statements. OPS-MALs must also submit quarterly Merchant Payment Acceptance Activities (MPAA) statistics and report volume changes that may affect their license category.
• IT risk management. Operators must maintain a risk-based IT Risk Management (ITRM) framework, including appropriate cybersecurity controls and business continuity measures.
• Merchant settlement standards. OPS-MALs must settle merchant funds within two business days and keep these funds in a designated BSFI account, separate from the operator’s own funds.

 

What about foreign-owned platforms?

Foreign ownership does not prevent a company from registering as an OPS. Under Circular No. 1049, foreign-incorporated platforms may still be required to register if they perform OPS activities involving Filipino merchants or consumers, even without a local office in the Philippines. 

Where BSP requirements differ from home-country standards, the stricter requirement applies.

 

Launch fast: Partner first, license later

For startups and platforms, OPS and MAL registration can take two to four months, even when the application is complete and requirements are met.

If you need to launch sooner, one option is to operate through an existing registered OPS partner while working toward your own registration. This can provide a faster path to market without bypassing regulatory requirements.

As payment regulations become more specific, OPS registration should be addressed before processing real customer funds, not after.

AltPayNet is a BSP-registered Operator of Payment Systems and PCI DSS-certified payment technology company operating in the Philippines since 2015. Its existing licensing and compliance framework enables eligible partners to launch payment solutions while pursuing your own regulatory requirements.

 

Frequently Asked Questions

Can I operate before my COR is issued?

Most OPS can begin operations and register within one month of launch. Some cases require BSP clearance before going live. If you’re unsure, register first. CL-2025-021 shows the consequences of unauthorized operation are serious and permanent.

How long does the process take?

Allow two to four months for the full process. PCOR issuance through BSP review to final COR. The PCOR itself is typically issued within days to weeks of a complete application.

Do banks and EMIs register separately?

Yes. Banks and EMIs submit a streamlined notification rather than a full application and are exempt from the ₱20,000 fee.

Is PCI DSS certification required?

Not explicitly under Circular No. 1049, but the BSP’s IT risk management requirements under the MORPS effectively require robust data security. PCI DSS is the recognized standard and is separately required by card networks.

What happens if I miss the one-month window?

The BSP can direct you to stop operating until registration is complete. CL-2025-021 demonstrates the BSP’s willingness to permanently bar entities that operate without authorization.

Does an MAL replace OPS registration?

Yes. An OPS granted a Merchant Acquisition License is automatically considered compliant with OPS registration requirements.