In the Philippines, the two major electronic funds transfer (EFT) services for online bank-to-bank transfers are PESONet and InstaPay. What are the differences between the two and which one should you choose?
You’ve probably experienced going to the bank, filling out a deposit slip and waiting in line for an hour just to deposit money to a friend or loved one’s bank account. Fortunately, you no longer have to go through all that effort to transfer money to another bank account.
With EFT services like InstaPay and PESONet, transferring money from one bank to another is a breeze. You only need an online banking account and a computer or mobile phone with an Internet connection to send money to a local bank account.
Electronic fund transfer (EFT) services allow a bank to transfer money to another bank electronically or digitally, so long as both banks are part of the same EFT network. Think of an EFT service as a direct line between two different banks. The EFT service acts as a “middleman” that handles and facilitates the transfer and movement of money from one bank to another.
Thanks to EFT services such as PESONet and InstaPay, you don’t have to go to the bank to deposit money to someone else’s bank account. You can simply login to your online banking account, enter your recipient’s account information, and select your preferred EFT service to complete the process. Mobile wallets like GCash and PayMaya also use InstaPay and PESONet to send and receive money to and from bank accounts.
While InstaPay and PESONet are both electronic fund transfer services and perform basically the same job, there are several differences between the two. These EFT services differ in the length of time it takes for the transfer to complete as well as the daily transaction limits. Transaction fees also differ although these are usually set by the sending bank.
In this article, we’ll discuss what InstaPay and PESONet are, the differences between the two EFT services, and which one to choose depending on your preferences and expectations.
InstaPay vs. PESONet Quick Comparison
PESONet and InstaPay are electronic fund transfer services managed by the Philippine Payments Management Inc. (PPMI), a self-governing body established in 2017 by payment industry participants and supported by the Bangko Sentral ng Pilipinas (BSP).
For a quick comparison of InstaPay and PESONet, refer to the table below:
| InstaPay | PESONet | |
|---|---|---|
| Transaction Fee | Depends on the sending bank | Depends on the sending bank |
| Fund Availability | Almost immediately | Before 11:00 PM on the same banking day if made before 3:00 PM; Next banking day if made after 3:00 PM or during weekends and holidays |
| Service Availability | 24/7, all year round | 24/7, banking days only |
| Maximum Transaction Limit | ₱50,000 per transaction | None, but may depend on the bank |
As you can see, the major differences of the two EFT services are the availability of funds and the maximum transaction limit. InstaPay transfers are available almost immediately, while PESONet funds are available on the same day or on the next banking day if made after the cut-off time. PESONet is ideal for large-scale transfers as it has no transaction limits (depending on the bank) whereas InstaPay only allows up to ₱50,000 per transaction.
What is InstaPay?
InstaPay is an electronic fund transfer (EFT) service that allows customers to transfer money between accounts of InstaPay participating and BSP-supervised banks and e-money issuers (or e-wallets) in the Philippines.
Customers of InstaPay participating institutions with savings, current and e-money accounts can use the InstaPay EFT service to send and receive fund transfers. InstaPay is available 24 hours a day, 7 days a week, including weekends and holidays.
Fund transfers coursed through InstaPay are processed in real-time and funds will become available to the recipient almost immediately. Customers can transfer a maximum of ₱50,000 per transaction although participating banks can set the maximum daily transfer limit per account. The transaction fee is set by the sending bank and is charged to the sender’s account.
InstaPay Features
- Transaction Fee: Depends on the sending bank
- Fund Availability: Almost immediately
- Service Availability: 24/7, all year round
- Maximum Transaction Limit: ₱50,000 per transaction
InstaPay Advantages
- Real-time transfers
- Receive money almost instantly
- Great for urgent, time-critical transactions
- Available any time of the day, even during weekends and holidays
InstaPay Disadvantages
- Can only send up to ₱50,000 per transaction
InstaPay Participating Banks and Transaction Fees
These are the InstaPay participating banks and e-money issuers as of August 12, 2021. Transaction fees are accurate as of June 30, 2021. The list is subject to change without prior notice.
| InstaPay Participating Bank or E-Wallet | Transaction Fees |
|---|---|
| AllBank, Inc. | ₱15 |
| Asia United Bank Corporation | Free |
| Bangko Mabuhay (A Rural Bank), Inc. | N/A |
| Bank of Commerce | ₱10 – ₱25 |
| Bank of the Philippine Islands (BPI) | Free – ₱25 |
| BDO Unibank, Inc. | ₱25 |
| BDO Network Bank, Inc. | Receiver only |
| Binangonan Rural Bank | N/A |
| BPI Direct Banko, Inc., A Savings Bank | Free – ₱25 |
| Camalig Bank, Inc. (A Rural Bank) | Free |
| Card Bank, Inc. (A Microfinance-Oriented Rural Bank) | ₱12 |
| Cebuana Lhuillier Rural Bank, Inc. | ₱15 |
| China Bank Savings, Inc. | Free |
| China Banking Corporation | Free |
| CTBC Bank (Philippines) Corporation | ₱15 |
| DCPay Philippines Inc. (Coins.ph) | ₱10 |
| Development Bank of the Philippines (DBP) | N/A |
| Dumaguete Development Bank, Inc. | N/A |
| Dungganon Bank (A Microfinance Rural Bank), Inc. | ₱10 |
| East West Banking Corporation | Free |
| East West Rural Bank, Inc. | Free |
| Equicom Savings Bank, Inc. | Free – ₱15 |
| G-Xchange Inc. (GCash) | ₱15 |
| Gpay Network PH, Inc. (GrabPay) | Free |
| ING Bank N.V. | Free |
| ISLA Bank (A Thrift Bank), Inc. | Receiver only |
| Land Bank of the Philippines | Free |
| Malayan Bank Savings and Mortgage | ₱15 |
| Maybank Philippines, Inc. | ₱10 – ₱40 |
| Metropolitan Bank and Trust Company | Free |
| Mindanao Consolidated Cooperative Banks | N/A |
| OmniPay, Inc. | N/A |
| Partner Rural Bank (Cotabato), Inc. | N/A |
| PayMaya Philippines Inc. | ₱10 |
| Philippine Bank of Communications (PBCom) | ₱1 – ₱20 |
| Philippine Business Bank, Inc., A Savings Bank | Receiver only |
| Philippine National Bank (PNB) | ₱10 – ₱15 |
| Philippine Savings Bank (PSBank) | Free |
| Philippine Trust Company | N/A |
| Philippine Veterans Bank | Receiver only |
| Producers Savings Bank Corporation | N/A |
| Queen City Development Bank, Inc. | N/A |
| Quezon Capital Rural Bank | N/A |
| Rizal Commercial Banking Corporation (RCBC) | Free – ₱25 |
| Robinsons Bank Corporation (RBC) | ₱1 – ₱25 |
| Rural Bank of Guinobatan, Inc. | Free |
| Security Bank Corporation (SBC) | ₱15 – ₱25 |
| Starpay Corporation | ₱15 |
| Sterling Bank of Asia, Inc. (A Savings Bank) | ₱15 |
| Sun Savings Bank | ₱10 |
| UCPB Savings Bank | N/A |
| Union Bank of the Philippines | Free – ₱30 |
| United Coconut Planters Bank (UCPB) | Free |
| USSC Money Services, Inc. | N/A |
| Wealth Development Bank Corporation | N/A |
What is PESONet?
PESONet is an electronic fund transfer (EFT) service and automated clearing house (ACH) that facilitates the transfer of funds from one account to one or several accounts in different BSP-Supervised Financial Institutions (BSFIs). PESONet is an acronym for Philippine EFT System and Operations Network.
PESONet transactions are processed in bulk and cleared at batch intervals with multiple settlement and clearing cycles within the day. The payee or beneficiary will receive the full amount within the same banking day as long as the transfer was conducted before the 3:00 PM cut-off time. Fund transfers made after cut-off or during non-banking days (i.e. weekends and holidays) will be completed on the next banking day.
Customers can transfer unlimited amounts via PESONet, subject to the maximum limits set by the bank. Transaction fees are also determined by the sending bank or e-money issuer.
PESONet Features
- Transaction Fee: Depends on the sending bank
- Fund Availability: Before 11:00 PM on the same banking day if made before 3:00 PM; next banking day if made after 3:00 PM or during weekends and holidays
- Service Availability: 24/7, banking days only
- Maximum Transaction Limit: None, but may depend on the bank
PESONet Advantages
- Can send unlimited amounts (depending on the bank)
- Great for large-scale fund transfers (e.g. salary payments)
PESONet Disadvantages
- Transfers are not instant and could take up to a day or more
- Not ideal for time-critical transactions
- Only available during banking days
PESONet Participating Banks and Transaction Fees
These are the PESONet participating banks and e-money issuers as of August 12, 2021. Transaction fees are accurate as of June 30, 2021. The list is subject to change without prior notice.
| PESONet Participating Bank or E-Wallet | Transaction Fees |
|---|---|
| Al-Amanah Islamic Investment Bank of the Philippines | ₱55 |
| AllBank, Inc. (A Thrift Bank) | ₱25 |
| Asia United Bank Corporation | Free |
| Australia and New Zealand Banking Group, Ltd. | Free – ₱400 |
| Bangko Kabayan, Inc. (A Development Bank) | N/A |
| Bangko Mabuhay (A Rural Bank), Inc. | N/A |
| Bangko Nuestra Senora Del Pilar, Inc. (A Rural Bank) | N/A |
| Bangkok Bank Public Co. Ltd. | ₱150 – ₱250 |
| Bank of America, N.A. | ₱20 – ₱2,100 |
| Bank of China “Hong-Kong” Limited – Manila Branch | ₱30 |
| Bank of Commerce | ₱10 – ₱25 |
| Bank of Florida, Inc. | ₱50 |
| Bank of Makati (A Savings Bank), Inc. | Free |
| Bank of the Philippine Islands (BPI) | Free – ₱50 |
| BDO Unibank, Inc. | Free – ₱50 |
| BDO Network Bank, Inc. | ₱100 – ₱500 |
| BPI Direct BanKO, Inc., A Savings Bank | Free – ₱50 |
| Camalig Bank, Inc. (A Rural Bank) | ₱20 – ₱500 |
| Cantilan Bank, Inc. | N/A |
| Cathay United Bank Co., Ltd. – Manila Branch | ₱200 |
| Cebuana Lhuillier Rural Bank, Inc. | ₱50 |
| China Bank Savings, Inc. | Free |
| China Banking Corporation | Free |
| CIMB Bank Philippines, Inc. | Free |
| Citibank, N.A | ₱100 |
| Community Rural Bank of Romblon (Romblon), Inc. | N/A |
| Country Builders Bank, Inc. | Free |
| CTBC Bank (Philippines) Corporation | Free |
| DCPay Philippines Inc. (Coins.ph) | Free – ₱5 |
| Deutsche Bank AG | ₱10 – ₱2,000 |
| Development Bank of the Philippines (DBP) | Free – ₱10 |
| Dumaguete City Development Bank, Inc. | N/A |
| Dungganon Bank, Inc. | ₱10 |
| East West Banking Corporation | Free |
| East West Rural Bank, Inc. | Free |
| Equicom Savings Bank, Inc. | Free – ₱15 |
| First Consolidated Bank, Inc. | ₱15 – ₱300 |
| G-Xchange, Inc. (GCash) | N/A |
| Guagua Rural Bank, Inc. | N/A |
| HSBC Savings Bank, Inc. (HSBC SB) | Free – ₱50 |
| Industrial and Commercial Bank of China | N/A |
| Industrial Bank of Korea | ₱200 |
| ING Bank N.V. | Free |
| JP Morgan Chase Bank, N.A. | Free – ₱125 |
| KEB Hana Bank – Manila Branch | $10 – $105 (Php equivalent) |
| Laguna Prestige Banking Corporation, (A Rural Bank) | N/A |
| Land Bank of the Philippines | Free |
| Malayan Bank Savings and Mortgage | ₱50 |
| Maybank Philippines, Inc. | $15 (Php equivalent) |
| Mega International Commercial Bank Co., Ltd. | $10 (Php equivalent) |
| Metropolitan Bank and Trust Company | Free |
| Mizuho Bank, Ltd. – Manila Branch | ₱50 |
| Money Mall Rural Bank, Inc. | N/A |
| MUFG Bank, Ltd. | ₱250 |
| MVSM Bank (A Rural Bank Since 1953) Inc. | N/A |
| PayMaya Philippines Inc. | N/A |
| Philippine Bank of Communications (PBCom) | ₱15 – ₱500 |
| Philippine Business Bank, Inc. | Free |
| Philippine National Bank (PNB) | ₱10 – ₱50 |
| Philippine Savings Bank (PSBank) | Free |
| Philippine Trust Company | Free |
| Philippine Veterans Bank | Free |
| Producers Savings Bank Corporation | ₱100 – ₱500 |
| Queen City Development Bank Inc. | N/A |
| Rang-Ay Bank, Inc. (A Rural Bank) | N/A |
| RBT Bank, Inc. | N/A |
| Rizal Commercial Banking Corporation (RCBC) | ₱10 |
| Robinsons Bank Corporation (RBC) | ₱1 – ₱100 |
| Rural Bank of Digos, Inc. | N/A |
| Rural Bank of Guinobatan, Inc. | Free |
| Rural Bank of Lebak (Sultan Kudarat), Incorporated | N/A |
| Rural Bank of Montalban, Inc. | N/A |
| Rural Bank of Rosario (La Union), Inc. | N/A |
| Rural Bank of Sta. Ignacia, Inc. | N/A |
| Security Bank Corporation (SBC) | ₱20 – ₱50 |
| Shinhan Bank – Manila Branch | ₱100 |
| Standard Chartered Bank | ₱50 |
| Sterling Bank of Asia, Inc. (A Savings Bank) | ₱15 – ₱30 |
| Sumitomo Mitsui Banking Corporation – Manila Branch | ₱250 |
| The Hongkong & Shanghai Banking Corporation (HSBC) | Free – ₱700 |
| Tonik Digital Bank, Inc. | N/A |
| Union Bank of the Philippines | Free – ₱100 |
| United Coconut Planters Bank (UCPB) | Free – ₱150 |
| United Overseas Bank Limited, Manila Branch | Min. ₱775 |
| Wealth Development Bank, Corp. | N/A |
| Yuanta Savings Bank Philippines, Inc. | ₱100 |
PESONet vs. InstaPay: Which One Should You Choose?
InstaPay and PESONet are both trustworthy and reliable fund transfer services backed by the BSP, so your decision to choose your EFT service boils down to a few factors aside from the transaction fee.
If you are planning to transfer more large amounts of more than ₱50,000, you should probably choose PESONet even though the transaction takes longer to complete. You can make the transfer long before the 3:00 PM cut-off time so that the money will be available before 11:00 PM on the same day.
Keep in mind that some banks have transaction limits for PESONet transfers. For example, Metrobank has a ₱200,000 daily maximum limit for online banking transfers. You will have to consult with your bank to know their transaction limits for PESONet fund transfers, and whether these limits are per transaction, per account, or per day.
On the other hand, if you or your beneficiary needs the money right now, your only option is InstaPay since transfers are processed and completed almost instantly. It usually takes less than a minute for the funds to be credited to your beneficiary’s account.
In a nutshell, use InstaPay for small and/or urgent transactions, and PESONet if you have a sizeable amount of money to transfer but you (or your beneficiary) are not in a hurry.
Conclusion
Now that you know the similarities and differences between PESONet and InstaPay, you can make an informed decision on which EFT service to use for your next online fund transfer. You’ll be able to save money on transaction fees and avoid any inconveniences as a result of choosing the wrong EFT service.
For more information about PESONet and InstaPay, visit the PPMI website or email [email protected].
