The Bangko Sentral ng Pilipinas (BSP) on June 17 lifted a nearly five-year freeze on digital transfer fee increases through Memorandum M-2026-025 and Circular 1238, clearing the way for payment service providers to adjust fees for InstaPay and PESONet transactions under a new pricing framework. The ban was first implemented in 2021 during the pandemic to sustain the shift to cashless transactions and prevent banks from raising transfer charges. The BSP stated the lifting is grounded in the implementation of zero fees for small merchant payments and aims to reduce fees for person-to-person electronic fund transfers rather than pave the way for higher consumer charges.
BSP Establishes New Pricing Framework for Digital Transfers
Under the new rules, banks and payment service providers must adopt a policy for setting electronic payment fees using what the BSP called a "reasonable and fair market-based pricing mechanism." The BSP stated that fees should not arise from non-competitive agreements and pricing should reflect the actual cost of conducting electronic transfers. The framework requires small merchants to receive digital payments without being charged fees. Currently, institutions charge anywhere from P5 to upwards of P50 for digital transfers, according to a BSP report.
Finance Secretary Go Pushes for P2-P5 Transfer Fees
Finance Secretary Frederick Go is pushing to drop digital transfer fees to as low as P2 to P5 per transaction. "Digital payment should be fast, secure, convenient, and affordable. We've been talking to them (the BSP) about this. We want to level the playing field," Go said, as reported by Inquirer.net. Go acknowledged that the goal is not necessarily to eliminate all fees, stating "You just need one of the big players to drop. Then people have to compete. Then we drop the convenience fees. That will add pressure on agencies that continue to collect high convenience fees."
Banks Cite P22 Cost Per Transfer in Fee Discussions
Banks have argued that customer transfer fees cover multiple cost layers including the switch or network fee paid to process transactions, clearing and settlement costs, cybersecurity, authentication tools, fraud monitoring, customer support, compliance, and digital infrastructure. In 2024, Bank of the Philippine Islands (BPI) president and chief executive officer Jose Teodoro "TG" Limcaoco said BPI's study found that each interbank transfer cost the lender about P22, with BDO arriving at a similar number. Limcaoco proposed a conditional cut in banks' reserve requirement ratio (RRR) in exchange for zero interbank transfer fees.
Landbank Cuts InstaPay Fee from P15 to P8 in May 2026
The government used Land Bank of the Philippines to set a benchmark for lower fees. In May 2026, Landbank cut its InstaPay transfer fee for individuals from P15 to P8, while allowing customers one free InstaPay transfer per day for transactions worth P1,000 and below. Former BSP Governor Felipe Medalla in 2023 had stated the BSP was ready to work with banks on a cost-sharing setup that would exclude small transactions from fees, saying "I promise you, the central bank will be in a greater hurry to cut reserve requirements so you can afford to give those fees."
FAQ
What did the BSP do on June 17 regarding digital transfer fees?
The BSP issued Memorandum M-2026-025 and Circular 1238 on June 17, lifting a nearly five-year freeze on digital transfer fee increases and establishing a new pricing framework for InstaPay and PESONet transactions.
Why did the BSP originally freeze digital transfer fees in 2021?
The BSP implemented the ban in 2021 during the pandemic to sustain the shift to cashless transactions and prevent banks and payment players from raising transfer charges as more Filipinos relied on online channels.
What fees does Finance Secretary Go want for digital transfers?
Finance Secretary Frederick Go is pushing to drop digital transfer fees to as low as P2 to P5 per transaction, stating that digital payment should be "fast, secure, convenient, and affordable."
