The Bangko Sentral ng Pilipinas is reviewing banks and e-wallet operators that still charge for InstaPay transfers after much of the industry moved to zero-fee digital fund transfers this month. The check centers on whether those remaining fees comply with BSP Circular No. 1238, which limits how far charges for transfers between institutions can differ from fees for transfers within the same institution.
What the BSP is reviewing
BSP Deputy Governor Mamerto Tangonan said the central bank is examining compliance reports and itemized cost breakdowns submitted by institutions that have not fully removed or sharply reduced interbank transfer charges. The review covers financial institutions and e-wallet providers whose current pricing for off-us transfers may still be above what the circular allows.
Under Circular No. 1238, fees for sending money to another institution should not be materially different from fees for same-bank or same-wallet transfers, except for direct and minimal network switch costs. Those switch costs were estimated at around ₱1.50 per transaction. Because on-us transfers are generally free, the BSP asked providers to explain any remaining markup through detailed cost analysis.
Providers that kept charging
The latest scrutiny comes after several major payment providers, including GCash and Maya, cut InstaPay fees to ₱10 rather than eliminating them altogether. Tangonan said the BSP asked institutions to show how those charges were computed and whether they can be justified under the circular.
He said institutions that do not align with the rule effectively face two options: reduce interbank transfer fees closer to actual switch costs, or charge for same-network transfers as well so that the gap between on-us and off-us pricing is no longer significant.
Tangonan also said financial institutions should look to adjacent services such as lending, investments and insurance for revenue, instead of relying on transaction friction from fund transfers.
Banks that removed transfer charges
A large group of traditional and state-run banks has already shifted to free digital transfers. According to the source report, these banks account for more than 90% of total digital transaction volume.
Bank of the Philippine Islands permanently waived InstaPay and PESONet fees across its main digital platforms starting July 1. RCBC removed InstaPay fees for up to 30 transfers per month on RCBC Pulz and offered uncapped free transfers on RCBC DiskarTech beginning July 4. LANDBANK and UnionBank fully waived retail InstaPay and PESONet charges on July 7.
Metrobank, PSBank, Chinabank and BDO Unibank followed with complete fee waivers across their online and mobile apps on July 9. Philippine National Bank and Security Bank adopted zero-fee digital transfers on July 10. EastWest Bank was scheduled to fully remove InstaPay and PESONet fees starting July 15.
Possible outcomes of the review
The BSP has not yet announced enforcement action, but Tangonan said penalties remain possible after the review is completed. The regulator is now determining whether the remaining charges reflect only permitted minimal switching costs or whether further changes are needed.
The issue also underscores a divide in the market. The source report said standalone e-wallet platforms have argued that transaction-fee income helps support offline agent cash-in networks, while many large banks have already absorbed transfer costs and moved to free services.
The central bank’s review forms part of a broader push for a low-cost and interoperable digital payments environment for consumers and small merchants, with off-us transfer fees under closer regulatory scrutiny as more providers abandon them.
Source: bitpinas.com