PESONet vs. InstaPay: Which Electronic Fund Transfer Service to Choose?

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 make use of 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:

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.

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 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].