Manila: State-owned Land Bank of the Philippines (LandBank) and digital payments leader Visa launched a new Government Purchase Card (GPC) on Tuesday, designed to offer government agencies a more transparent, seamless, and efficient payment solution for managing procurement services.
According to Philippines News Agency, LandBank Executive Vice President Marilou Villafranca announced during a briefing at the LandBank office in Manila that the GPC functions as a credit card for government purchases. She emphasized that the card would eliminate manual processes tied to paper-based cash advances and liquidation. "It works like a credit card. Just use your card and then upon billing cycle, the agency will have to pay the entire amount," Villafranca stated.
The GPC will utilize an integrated digital expense management system, set to launch by the fourth quarter of the year, to automate all expense processes from transaction capture and reconciliation to approval workflows and reporting. Villafranca noted that the system would provide transparency from the moment a card is used, with the Commission on Audit having access to monitor spending.
The new LandBank Visa GPC aims to automate procurement-related payments for public sector institutions, covering low-value purchases, government travel spending, and recurring expenses. This transition from traditional cash advances and manual reimbursements to a secure digital payment system will be enhanced by built-in controls, including spending limits and merchant restrictions.
Kris Cuevas, LandBank First Vice President - Retail Banking Group, mentioned that government agencies would determine transaction limits. "It could vary per agency depending on what they require and what they're used to.their spend," she explained.
The Bureau of the Treasury will be among the first to adopt the GPC, as it manages the custody and disbursement of government funds through its 16 regional offices nationwide. LandBank aims to onboard 2,000 agencies by the end of the year.
Visa Philippines country manager Jeffrey Navarro highlighted the partnership's goal to enhance the government procurement process, making it more seamless, secure, and transparent. "This initiative really helps the government in terms of minimizing, if not eliminating manual processes. And the good thing about that is government agencies can now really focus in terms of delivery of service if we minimize a lot of these processes," Navarro said.
