In line with the government’s call to boost financial inclusion in the country and for more efficient delivery of public services to citizen beneficiaries, the Development Bank of the Philippines (DBP) has chosen PayMaya as the digital financial services partner for its assistance program, which aims to help farmers improve their livelihood and productivity.
Under the program, farmer beneficiaries will be able to receive payments for produce as well as disbursements from cash assistance from DBP-partner local governments and organizations through their PayMaya-powered ID cards. PayMaya will also be providing the cashless disbursement platform to the partner organizations.
To complete the digital financial ecosystem, PayMaya will enable more businesses – especially in retail, food, fuel, and utility industries – that cater to farmers and their families to accept emerging cashless payment options, including PayMaya QR. It will also mobilize its Smart Padala by PayMaya nation-widest partner branch network to serve as “digital outposts” in the communities so farmers and their families can conveniently add or cash-out funds even in areas without ATMs.
“Giving our farmers much-needed access to financial products to help uplift their livelihood is an important mission for DBP as part of our thrust toward financial inclusion for every Filipino. By employing digital means to deliver crucial financial services to them, we are able to help boost their productivity, increase their yields, improve their lives, and contribute to the growth of the economy as a whole,” said DBP President and CEO Emmanuel G. Herbosa.
“This is financial inclusion at its finest and most relevant, serving the needs of one of the most underserved sectors of our society – our farmers. This project brings important digital financial services to the agriculture sector, serving as building blocks toward the growth of our economy,” said Orlando B. Vea, Founder and CEO of PayMaya.
Empowering farmers in Isabela for financial inclusion
The initial implementation will be targeting rice and tobacco farmers in Isabela Province, with the Provincial Government of Isabela and the Nagkaisang Magsasaka ng Isabela Agricultural Cooperative (NMIAC) as program partners.
Dubbed as the Isabela Prosperity Program, the pilot will cover two sets of farmer beneficiaries: tobacco farmers covered by the Isabela Province Tobacco Farmers Proceeds and rice farmer members of NMI Agri Coop who will benefit from NMI Agri Coop loan with DBP, selling their palay at a premium price under the Expanded Rice Credit Assistance of the Rice Competitiveness Enhancement Fund (ERCA-RCEF).
DBP and PayMaya are partnering with the Provincial Government of Isabela to more efficiently disburse the proceeds of the province’s share in the excise tax collections on burley and native tobacco among farmers in the region through PayMaya-powered ID cards.
“This initiative will help boost not just the productivity but also the competitiveness of farmers in Isabela, as they will be provided with crucial financial services that can help with their farm livelihoods, powered by technology. We thank our partners at DBP and PayMaya for choosing Isabela as the pilot site for this innovative collaboration,” said Rodito T. Albano III, Provincial Governor of Isabela
Likewise, the DBP and PayMaya are working with the NMIAC to more efficiently disburse and buy rice crops at a premium rate from its member-farmers in the province under the Expanded Rice Credit Assistance under the ERCA-RCEF, also via ID cards powered by PayMaya. This is seen as an immediate boost to mitigate the impact of the Rice Tariffication Law, in parallel with a more sustainable program to improve livelihood resiliency.
“Farmers are the lifeblood of our nation, as they help provide food to each family’s table. By empowering them with a financial account where they can conveniently and securely receive funds through our partners DBP and PayMaya, and helping them improve their livelihood, we are ensuring the growth and stability of our nation,” added Ana Cristina Siquian-Go, President of NMIAC.
For her part, Senator Cynthia A. Villar, who is the current Chairperson of the Senate Committee on Agriculture and Food, said: “RCEF is a program we put in place as a safety net for our rice farmers. Our committee, along with the Department of Agriculture and other government departments and agencies, is committed and will prioritize to help our farmers to transition as we implement the Rice Tariffication Law. We will constantly assess the situation, provide urgent solutions, put systems in place, solve problems and most of all, address complaints. The bottomline is, we are all doing our best, but we cannot do everything on our own. Kailangan talaga ang pagtutulungan at pagkakaisa ng lahat.”
The first batch of farmer-beneficiaries received their NMIAC ID cards powered by PayMaya during a provincial launch event last October 12 in Roxas, Isabela. The event was attended by over 4,000 farmer beneficiary members of NMIAC, with Senator Villar and the Department of Agriculture Secretary William D. Dar participating in the activity.
Delivering efficient public service to Filipinos
The program partners will also conduct relevant digital and financial literacy campaigns to spur adoption and build overall financial inclusion in the communities.
By equipping farmers with PayMaya-powered ID cards, they are able to gain instant and convenient access to a “starter” financial account which can help them with their day-to-day transactions. This also provides the gateway for them to avail of other financial products and services.
The partnership also provides DBP and its partners with a seamless, convenient, and transparent means to disburse funds, loan proceeds, and other payments to their partner-beneficiaries, allowing for greater operational efficiencies and security. It also extends the reach of DBP to communities with limited bank branch and ATM presence.
PayMaya is the leader in digital financial services company in the country, uniquely offering the widest range of integrated digital payment solutions for enterprises and consumers. Among its products and services are PayMaya, the country’s most recognized e-wallet and mobile payments app, PayMaya Business with its suite of online and offline merchant solutions, and Smart Padala by PayMaya, the country’s largest digital remittance network. It is the financial technology arm of Voyager Innovations, the leading technology company in the country backed by PLDT, KKR, Tencent, World Bank’s IFC, and the IFC Emerging Asia Fund.