Digital fund transfers in the Philippines have jumped 10 to 50 percent since banks and e‑wallet providers reduced or waived interbank transfer fees, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto Tangonan said.
The increase followed the implementation of BSP Circular No. 1238, which took effect on July 4 and requires banks, e‑wallets, and other payment service providers to adopt reasonable, fair, and market‑based pricing for retail digital fund transfers. Under the new rules, fees for person‑to‑person transfers between different institutions cannot materially exceed those for transfers within the same institution, with the only permissible difference being the switch cost, estimated at around 1.50 pesos, charged by clearing operators.
Major banks and e‑wallets moved fast. The Bank of the Philippine Islands permanently waived InstaPay and PESONet charges starting July 1, and Rizal Commercial Banking Corporation began offering free InstaPay transfers on July 4. Philippine National Bank and BDO joined the waivers on July 10 and July 9, respectively. E‑wallet providers GCash and Maya simultaneously lowered their InstaPay fees from 15 pesos to 10 pesos per transaction.
Tangonan said that beyond higher transaction volumes, banks reported new customers opening digital accounts after the fee reductions took effect. Institutions that had not yet complied were called in to explain their fee structures, though the BSP said it would not impose immediate penalties.
The circular is part of a broader effort to accelerate the digitalization of the Philippine payments system. The central bank had lifted a five‑year moratorium on InstaPay and PESONet fee adjustments through Memorandum No. M‑2026‑025, issued June 17, but paired the move with strict cost‑based pricing that effectively pushed most retail transfer fees toward zero.
The BSP had acknowledged earlier concerns that the Philippines might miss its target of converting 60 to 70 percent of retail payments to digital channels by 2028, with digital payments accounting for roughly 57 percent of retail transactions in 2024. Officials now say the fee reductions could help the country stay on track to meet the 2028 goal.
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