State-run Land Bank of the Philippines (Landbank) will stop charging fees for online fund transfers through InstaPay and PESONet starting July 7, the bank announced Monday, becoming the latest lender to eliminate interbank transfer charges this year.
Landbank said the zero-fee policy covers retail clients who send money through its mobile banking app and iAccess platform, including customers of Overseas Filipino Bank. The waiver also extends to retail transactions and person-to-government payments made through QRPh.
“By expanding our zero-fee digital framework from government payments to everyday retail transfers, we want to ensure our banking services directly uplift workers, small business owners and overseas Filipinos,” said Lynette Ortiz, Landbank President and CEO.
The move follows Bangko Sentral ng Pilipinas Circular No. 1238, which took effect July 4 and requires banks to keep transfer fees “reasonable and fair market-based,” tied to the actual cost of processing a transaction through a payment network. BSP has pegged that cost, known as the switch fee, at roughly ₱1.50, meaning banks that already offer free intrabank transfers can charge no more than that amount for interbank transfers.
Landbank had already cut its InstaPay fee for person-to-person transfers to ₱8 from ₱15 and had run a pilot program waiving convenience fees for eligible person-to-government payments through QRPh before Monday’s announcement of a full waiver.
Landbank joins Bank of the Philippine Islands, which permanently removed InstaPay and PESONet fees starting July 1, and Rizal Commercial Banking Corporation, which made InstaPay transfers free starting July 4. RCBC’s policy, however, caps free transfers at 30 per month with a ₱100 minimum transaction amount, charging ₱10 once a client exceeds that limit or transfers below the minimum. GCash and Maya have also lowered their digital fund transfer fees in recent months.
Finance Secretary Frederick Go, who chairs Landbank’s board, has pressed banks to reduce or eliminate digital transaction fees. “Every peso saved on transfer fees is a peso that Filipino families can spend on their daily needs and that businesses can reinvest in growth,” Go said.
InstaPay, the real-time electronic fund transfer system that allows individuals to move money across banks instantly, was launched by the BSP in 2018.
Landbank has not indicated whether its fee waiver will be permanent or reviewed after a set period.
