Because of the high switching and on-ramp costs that keep thrift banks, rural banks, and microfinance institutions out of payment networks, Higala, as an IIPS, will act as a financial superhighway. There are 400 rural banks in the Philippines, but just 18 of them are now a part of InstaPay, depriving a large number of Filipinos of the advantages that come with using contemporary banking systems.

In the Philippines, there are 400 rural banks, but only eighteen of them are InstaPay members. This draws attention to a major issue: these banks' lack of interoperability. Because of this, financial inclusion's full potential is still barely unrealized, robbing many Filipinos of the advantages that come with using contemporary banking systems.

"Higala will make it possible for financial institutions to participate through our network and contribute to the modernization of our nation's digital financial infrastructures. Vice Catudio, president and CEO of Higala, stated, "Our objective is to increase the inclusivity of banking, particularly for the marginalized populations that have little access to traditional banking services."

By bringing down the cost of real-time payments, Higala encourages inclusiveness and aids financial institutions in setting fair prices for their immediate payments. It also seeks to quickly enable merchants to accept digital payments and to offer inclusive financial solutions to the underbanked.

Catudio explains that through Higala's open payment platform and suite of solutions, they will facilitate the aggressive development and marketing of innovative payment services to both consumers and merchants. This encompasses the integration of solutions such as regulatory technologies like e-KYC and AML-TF monitoring, AI-based risk detection and management, banking microledgers, a payment hub enabling instant fund transfers across participating banks, and a global transaction gateway for remittance.

Higala is also developing a core instant payment system that can work with banks of any size and enable white label app services to transform physical banks into digital banks.

Development that is sustainable
CEO of Talino Winston Damarillo stated, "At Talino, we are committed to the sustainable execution of development that benefits all stakeholders, especially the unbanked." "With Talino and Chemonics providing funding for Higala, we bring together the impact of venture investing and global good to expand the benefits of financial inclusion to segments that need them most."

We are thrilled to start a new chapter in our relationship with Higala, which is evidence of our dedication to financial inclusion and innovation in the Philippines and other emerging markets throughout the world. Chemonics President and CEO Jamey Butcher stated, "Higala embodies our vision for affordable, real-time transactions accessible to all Filipino communities, drawing from three decades of impactful partnerships and success in the economic growth space in the Philippines."

Mojaloop's initial implementation in Asia
Higala makes use of the Mojaloop Foundation's open payment platform. The nonprofit organization is committed to promoting financial inclusion by way of their Mojaloop open-source software. Higala enables smooth connectivity between different financial entities, such as banks, institutions, payment gateways, merchants, and the central bank, through Mojaloop's open payment framework. In financial transactions, this method improves accessibility and affordability.

"Through our partnership with Talino's Higala, we have enabled the groundbreaking implementation of Mojaloop open source software in Asia. This further solidifies the Mojaloop Foundation's dedication to dismantling obstacles and enabling communities via financial inclusion. Paula Hunter, executive director of the Mojaloop Foundation, said, "Together, we're not just revolutionizing payment systems; we're unlocking opportunities, fostering resilience, and building a future where financial access knows no bounds."

Damarillo emphasizes the goal of ensuring everyone is fully banked by reducing the barriers to obtaining bank accounts, minimizing the friction costs associated with digital payments, promoting acceptance among merchants, and empowering all financial institutions to offer these services to their constituents, particularly rural banks.

Backed by BSP and industry leaders

BSP Deputy Governor Mamerto E. Tangonan expresses the BSP's support for ongoing initiatives aimed at enhancing the efficiency of the national payment system and modernizing the Philippines' digital payments infrastructure. This support aligns with their continuous efforts to onboard more users into the digital payments system.

In addition, Tangonan states that the adoption of modern technologies such as artificial intelligence, machine learning, and compliance with global standards like ISO 20022 can assist payment service providers in introducing new services, enhancing customer experience, and ensuring the safety and security of digital transactions.

In addition to the BSP, Higala collaborates and partners with the Rural Bankers Association of the Philippines, Xendit, FinTech Alliance.Ph, and the Rizal Commercial Banking Corporation.

"We are dedicated to providing inclusive, cost-effective, and cutting-edge transaction management and settlement solutions. Higala offers the efficiency and equity necessary to effectively assist the country's transition to complete financial inclusion, according to Catudio.