The Land Transportation Office (LTO) on Wednesday clarified reports about the status of its online payment platform, saying the process of selecting and approving payment service providers remains transparent, competitive and subject to government regulations.
The LTO confirmed in a statement that Paynamics Technologist Inc. has proposed a new partnership with 1Fort City Center, offering a lower service fee of P50 per transaction.
“However, the agency clarified that this new setup is still undergoing evaluation and approval by the Bureau of the Treasury, as required by government financial regulations,” the statement read.
The Department of Transportation earlier directed the LTO to reduce the service or convenience fee being charged to motorists using its online payment system.
The current payment service provider, Paynamics/Goldgate Joint Venture, has been imposing a P60 convenience fee per transaction.
Upon review, the LTO discovered that the memorandum of agreement with Paynamics/Goldgate had expired last Oct. 27, ending a five-year term.
Despite the expiration, the system continues to operate to ensure uninterrupted online services for the public while the agency processes applications for new or renewed payment gateway providers.
At present, Paynamics/Goldgate remains the only active and authorized online payment service provider for LTO transactions.
“However, the agency stressed that the terms of reference (TOR) for its digital system clearly state that there must be multiple payment gateways (plural), ensuring that the system is non-exclusive and open to all qualified applicants,” it said.
Any company that meets the technical and financial requirements may apply to become an LTO payment gateway provider, the agency said.
