Union Bank of the Philippines will eliminate transaction fees for real-time person-to-person fund transfers through the InstaPay network starting July 7. The Aboitiz family-led lender confirmed the change through an official advisory, dropping a charge that had previously stood at ₱10 per transaction.
The waiver applies to transfers made through the UnionBank Online application, and customers must use the latest version of the app to access the zero-fee rate. It adds to a list of services UnionBank already offers free of charge, including PESONet transfers, transfers between UnionBank accounts, utility bill payments, telco load purchases, and in-store payments through QRPh.
UnionBank’s move follows similar decisions from two of its largest competitors. The Bank of the Philippine Islands (BPI) permanently waived fees for both InstaPay and PESONet transfers across its digital channels starting July 1. Rizal Commercial Banking Corporation (RCBC) adjusted its own pricing on July 4, offering 30 free monthly InstaPay transfers through its RCBC Pulz application and unlimited free transfers through its financial inclusion app, RCBC DiskarTech.
For Filipino bank customers, the changes mean that sending money between accounts at UnionBank, BPI, and RCBC no longer carries the ₱10 to ₱15 fee typically charged per InstaPay transaction at other banks. Customers who rely on interbank transfers for remittances or day-to-day expenses stand to save on fees that previously applied to every transaction.
The fee reductions follow a policy shift by the Bangko Sentral ng Pilipinas, which lifted a five-year moratorium on electronic fund transfer pricing through BSP Circular No. 1238. The regulation gives banks the flexibility to set their own transfer pricing, provided the rates remain fair and market-based in support of nationwide digital payment adoption.
In a Facebook post announcing the update, UnionBank said, “Open a UnionBank Online account now to unlock a suite of useful ZERO-FEE services so you can do A LOT MORE for LESS!”
UnionBank has not indicated whether the zero-fee InstaPay rate will extend beyond its online application to other channels, such as over-the-counter transactions at branches. The bank’s advisory covers digital transfers only as of this writing.
The waiver takes effect July 7, and UnionBank customers using an updated version of the UnionBank Online app will see the fee removed automatically at checkout.
