Higala, the pioneering Inclusive Instant Payment System in the Philippines, has closed a funding round led by 1982 Ventures and with continued support from existing investors Talino Ventures and Chemonics.

Real-time payments volumes exceeded 2.6 billion transactions per month in 2023^[1], yet large parts of the country still face hurdles to access. Since its introduction last year, Higala has been expanding financial access across the country, connecting more rural banks, thrift banks, commercial banks, and electronic money issuers to its network. With the volume of Philippines real-time payments is projected to grow at 18.5% CAGR between 2022 and 2027^[2], and Higala is reducing on-ramp barriers and lowering the cost of real-time payments for businesses and individuals alike.

“Higala’s innovative approach to inclusive instant payments is directly aligned with our vision of using fintech to change lives,” said Scott Krivokopich, Managing Partner at 1982 Ventures. “Winston Damarillo and Vice Catudio are an incredible team with a proven track record in building core payments infrastructure and we are proud to partner with Higala in launching a modern payments rail, which will make the Philippines' 5 billion monthly transactions faster, cheaper, and available to all sectors of the economy.”

“This funding milestone will allow Higala to accelerate the roll-out of services across its already robust ecosystem, which now includes an instant payment system, a platform bank, and an extensive network of collaborators who are all committed to improving financial system resilience and advancing the adoption of digital banking,” Higala CEO Winston Damarillo.

Platform banking, new banks in the network

Slated for launch in the second quarter of this year, Higala’s platform banking will enable smaller banks and other financial institutions to offer digital payment services, which is a gateway to their access and participation to instant payment systems.

Recently, Rizal Commercial Banking Corporation (RCBC) has partnered with Higala to provide the core technology to SynerFi, an open payments platform that provides digital payments access to smaller financial institutions in the Philippines.

“Built on modern ISO 20022 native infrastructure, Higala’s network enables its partners to launch new services and reach new segments, while strengthening existing business lines with increased reliability and lower costs,” stated Higala President and Chief Revenue Officer Vice Catudio, adding ,” We’re thankful for the support of our growing list of network partners which include leading commercial banks, electronic money issuers and payments systems operators, who are driving new revenue streams based on system interoperability.”

Some of the banks that are publicly announced as part of Higala’s network include the initial participants to RCBC’s SynerFi service and select rural banks that are part of the RCBC ATMGo network such as Rizal Microbank, Lagawe Highlands Rural Bank, Rural Bank of Cadiz, Rural Bank of Cabatuan, Rural Bank of Ilog, Marayo Bank, Rural Bank of Roxas, Pangasinan Bank, Money Mall Rural Bank, Rural Bank of Kapalong, Rural Bank of Solano, Rural Bank of Lebak, First Philippine Partners Bank, Rural Bank of Matag-ob, Rural Bank of Silay, and Rural Bank of Narciso.

Powered by Mojaloop technology, an open-source instant payment system supported by the Bill & Melinda Gates Foundation, Higala continues to work with partners RCBC, Xendit, FinTech Alliance.Ph, and the Rural Bankers Association of the Philippines.

Damarillo said, “We welcome more collaborators and proponents of financial resiliency in making Higala a beacon of financial inclusion not just in the country but also in the rest of the world.”