The Bangko Sentral ng Pilipinas (BSP) is reviewing the P10 InstaPay transfer fees charged by GCash and Maya after both e-wallets submitted cost breakdowns to justify their pricing. BSP Deputy Governor Mamerto Tangonan confirmed on Monday, July 20, that the central bank expects compliance with its circular aimed at eliminating fee barriers in the payment system. The review follows a July campaign that prompted at least 14 major banks to offer free InstaPay transfers, while GCash and Maya reduced their fees from P15 to P10 in early July but continue charging for transfers to other institutions.
GCash and Maya Maintain P10 Transfer Fees After Reduction
As of Friday, July 17, at least 14 universal and commercial banks were offering free InstaPay transfers, including BDO, BPI, Metrobank, Landbank, UnionBank, and RCBC. The top biggest banks account for about 90% of transaction volume. GCash and Maya continue to charge P10 for InstaPay transfers to other banks and wallets, while transfers within their respective ecosystems remain free. GCash cut its fee from P15 to P10 effective July 4, while Maya made the same reduction effective July 6.
BSP Reviews Cost Justifications Submitted by E-Wallets
GCash and Maya submitted itemized breakdowns of the costs behind their fees to the BSP. Tangonan told reporters the central bank is examining these submissions. "If they're able to explain it and justify that they're directly associated with switching, so be it," Tangonan said. The BSP will write the institutions with its findings, and the e-wallets may respond with further explanations before the central bank makes a final determination and issues a directive if necessary. Tangonan declined to provide a July or August deadline, stating the process requires an exchange of information and due process.
Tangonan Confirms Expectation of Circular Compliance
When asked directly whether e-wallets would ultimately have to bring their fees down or restructure them, Tangonan stated, "Of course, we expect compliance with the circular." The BSP is wary of regulatory arbitrage, where companies could structure transactions to fall under whichever set of rules favors them. "It is the plumbing of the financial system," Tangonan said. "We don't want to do that in a network. We want to protect the interoperability of the network." He noted that different regulations for different types of players could create difficulties.
BSP Identifies Alternative Revenue Sources for E-Wallets
Tangonan noted that e-wallet apps have evolved beyond basic money transfers, with users accessing savings accounts, loans, merchant services, and other financial products. "There are commercial benefits there. It's not given for free," he said. Payments data can help platforms assess a user's capacity to borrow, with regular salary, discretionary spending, and remaining amounts after expenses producing richer credit profiles than traditional documents alone. As transactions rise with free transfers, e-wallets could use these transaction histories to improve credit assessment and offer more relevant products.
Three Compliance Options Outlined for GCash and Maya
Under the BSP's framework, GCash and Maya have three options. The first is to make InstaPay transfers free or reduce the charge to roughly the direct switching cost while keeping same-wallet transfers free. The second option is to start charging a fee of around P8.50 on GCash-to-GCash or Maya-to-Maya transfers if the additional switch cost is about P1.50, while preserving the P10 transfer fee. "If you want to protect the P10, then you have to raise the transfers within the same institution to, let's say, around P8.50. If you don't want to do that, you bring down your interbank transfer," Tangonan said. The third option is to convince the BSP that expenses beyond the basic switch charge are directly and unavoidably attributable to inter-institution transfers through the submitted cost breakdowns.
FAQ
What did the BSP say about GCash and Maya transfer fees on July 20?
BSP Deputy Governor Mamerto Tangonan confirmed on Monday, July 20, that the central bank expects GCash and Maya to comply with its circular on transfer fees. The BSP is reviewing cost breakdowns submitted by both e-wallets to justify their P10 InstaPay transfer charges.
Why did GCash and Maya reduce their transfer fees in early July?
GCash reduced its InstaPay transfer fee from P15 to P10 effective July 4, and Maya made the same reduction effective July 6. These reductions followed the BSP's July campaign that prompted at least 14 major banks to offer free InstaPay transfers by Friday, July 17.
How does the BSP expect e-wallets to replace revenue from lower transfer fees?
Tangonan noted that e-wallet apps offer savings accounts, loans, merchant services, and other financial products that generate commercial benefits. The BSP also identified that payments data can help platforms assess borrowing capacity and offer more relevant products as transaction volumes increase.
