A local Filipino government and the U.S. Agency for International Development have launched a program to enable disbursements and tax payments via mobile phones, according to Business Mirror.

USAID picked Quezon City as its local partner because of its high population density and large number of banks and telcos. Quezon City is said to be the country's tech capital. The city's mayor said mobile payments will add convenience for residents while improving transparency and reducing potential leakage of government funds.

Only 26 percent of Filipinos can access formal financial channels, the site said, and more than one-third of the country's 1,635 municipalities do not have banks.

USAID will provide technical assistance to help the goverment develop the system.

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