The Bangko Sentral ng Pilipinas (BSP) is reviewing explanations submitted by banks and e-wallet providers that have not fully complied with Circular No. 1238, which directs financial institutions to adopt “reasonable and fair” pricing for money transfer fees.
The circular, which took effect July 4, requires that fees for sending money to accounts outside a bank or e-wallet’s own platform should not differ materially from fees charged for transfers within the platform. Any difference should reflect only the actual “switch cost” of processing a transaction through a payment network, estimated at around ₱1.50.
Several major banks have already moved to comply. BPI, LandBank, UnionBank, PNB, Metrobank, BDO, and Security Bank have waived InstaPay and PESONet fees entirely, while RCBC and EastWest Bank have introduced conditional free transfers. GCash and Maya, the country’s two largest e-wallets, have lowered their InstaPay fees to other banks to ₱10, from ₱15, while keeping transfers within their own platforms free.
BSP Deputy Governor Mamerto Tangonan, who heads the BSP Payments and Currency Management Sector, said banks and e-wallets that have not fully complied were asked to submit a report explaining their pricing structure.
“We asked them to give us an explanation or an itemized breakdown on how their fees were constructed. So that we will see if it complies with circular 1238 or if it needs improvement,” Tangonan said.
Tangonan said the reports were submitted last week and that the BSP is now validating them. He said institutions that have not yet complied have two options: raise their intrabank fee so it is not materially different from the interbank rate, or lower the interbank rate further.
“The consumers have a choice. If you don’t want A, then go to B,” he said.
Tangonan said banks and e-wallets can continue to earn from other products, such as loans, insurance, and investment services, even as transfer fees come down. He said the BSP estimates that the majority of big banks, covering around 90 percent of total transaction volume, have already lowered their fees.
The circular also covers merchants, with the BSP working to reduce requirements for small businesses to join the digital payments system as part of its broader financial inclusion push.
