On June 20, 2023, the Bangko Sentral ng Pilipinas (BSP) and SM Store installed the first Coin Deposit Machine (CoDM) at the SM Store in SM Mall of Asia in an effort to increase coin circulation in the Philippines. The SM Stores and SM Markets will have a total of 18 coin machines, with this one being the first.
The BSP-initiated effort seeks to further its Coin Recirculation Program and advance digitalization and financial inclusion. With the use of these devices, SM customers may now easily deposit their coins and add the matching value to their e-wallets, or have the coins turned into vouchers usable at SM Store locations.
“Most of the time, we put our loose change in our wallets, in piggy banks, inside drawers, or worse, used as a washer or thrown away. It is time that we realize that coins are as equally important as our bills and the money we have in our bank accounts and e-wallets. It is our hope that as one SM family, we can help address the looming coin issues in the country by using these CoDMs deployed in our malls,” said SM Retail Vice President for Treasury Jeffrey Ang.
Since December 2005, there have been 11.1 billion coin pieces in circulation, 6.7 billion of which are low-denomination coins, according to the BSP. This brought coins per capita to 121, much exceeding the Association of Southeast Asian Nations (ASEAN) average of 50 pieces. Because coins are not frequently used or circulated, the demand remains unfilled in many parts of the country.
“Hopefully, this will help solve the artificial coin shortage commonly experienced in the provinces. More enhancements are also expected as we roll out this game-changing project. With the support of our partners and stakeholders, the BSP is optimistic that this initiative will significantly reinforce coin circulation in the country for the benefit of the Filipino people,” said BSP Governor Felipe Medalla.
The BSP and SM and other merchants inked a Memorandum of Agreement (MOA) for the deployment of CoDMs in their malls last year. This action marked the beginning of the installation of the first 25 coin-deposit machines in Metro Manila and the neighboring regions.
This is not the first time that SM and the BSP have collaborated. The cashless malling project that SM introduced in 2022 contributed to an increase in digital transactions and furthered financial inclusion in the nation. Customers were able to shop at SM malls and make payments using QR Ph, the nation’s QR code standard.
