THE BANGKO Sentral ng Pilipinas (BSP) is stepping up scrutiny of banks and e-wallet providers that have yet to fully comply with its directive to adopt “reasonable and fair pricing” for fund transfer fees.
The central bank is now reviewing explanations and cost analyses submitted by financial institutions that continue to charge transfer fees despite BSP Circular No. 1238, which aims to make digital payments cheaper and more accessible.
“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,” said BSP Deputy Governor Mamerto Tangonan, who heads the Payments and Currency Management Sector.
While many banks have already eliminated transfer fees, some of the country’s largest e-wallet providers, including GCash and Maya, continue to charge P10 for InstaPay transfers to other banks after reducing—but not removing—the fee.
The BSP circular states that fees for transfers within the same bank or e-wallet should not be materially different from charges for transfers to other banks or platforms.
Before the circular took effect, transfers within the same institution were generally free, while interbank transfers carried a fee. The BSP said institutions may still impose a charge, but only enough to recover the actual switching cost, estimated at around P1.50 per transaction.
To determine whether the remaining fees are justified, the BSP required non-compliant banks and e-wallet providers to submit detailed breakdowns of how their transfer charges were computed.
Tangonan said the reports were submitted last week and are now undergoing validation.
He argued that reducing transfer fees is not only good for consumers but also makes business sense for banks and e-wallet providers by encouraging greater use of digital payments and creating more opportunities to sell other financial products.
“Now that we have reduced the friction in the payments system, funds can now flow more freely within the system. Therefore, any e-wallet provider or bank that can offer consumers better savings products, better credit products, more affordable insurance and investment products will gain more customers,” he said.
According to Tangonan, institutions that have yet to comply face a straightforward choice: either raise fees for transfers within their own platforms so they are no longer materially different from interbank charges, or reduce interbank transfer fees even further.
In the end, he said, the market will decide.
“The consumers have a choice. If you don’t want A, then go to B,” he said.
Tangonan said he is encouraged by the growing compliance, noting that most major banks—representing about 90 percent of total transaction volume—have already lowered or waived transfer fees.
He added that the BSP’s push extends beyond consumers.
The circular also seeks to make it easier for merchants, particularly small businesses, to join the digital payments ecosystem by reducing onboarding requirements.
For the BSP, broader adoption by both consumers and merchants is key to achieving greater financial inclusion.
