05-15-2025 
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The Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, is urging financial institutions to adopt a “market-based” and “fair” pricing mechanism for digital transaction fees, in a move aimed at reducing—if not removing—costs for consumers transferring money electronically.
The BSP is currently seeking comments from stakeholders on a draft circular that would guide banks and non-bank financial institutions in setting their fees for electronic fund transfers such as InstaPay and PESONet.
“The pricing mechanism must be adequately supported by an analysis of costs incurred by the BSFI [BSP-supervised financial institution] in delivering electronic payment products and services, which may be subject to validation by the BSP,” the proposal stated. BSP emphasized that these pricing models must not create an imbalance between different users. “The pricing mechanism shall not unduly favor one end-user relative to others,” the draft further noted.
The proposed guidance marks a shift from the central bank’s previous approach, explicitly proposing eliminating fees on small-value personal fund transfers. That provision is no longer part of the current draft.
Although the response of banks to the earlier proposal remains unclear, any effort to bring down digital transaction costs aligns with the BSP’s broader agenda to increase digital adoption and improve financial access across the Philippine population.
According to BSP data, current InstaPay fees range from PHP8 to PHP75 ($0.14 to $1.35) per transaction, while PESONet charges can go as high as PHP600 ($11). Furthermore, the draft circular introduces an added layer of oversight, requiring BSP approval for any increases in existing fees or the introduction of new charges on digital payment services.
Digital payment usage surges as BSP eyes more inclusive system
The BSP’s push for fairer transaction fees comes on the back of rising digital payments across the country. According to the latest central bank data, the share of digital payments in total retail transactions rose to 52.8% in 2023, up from 42.1% in 2022. This means that out of the estimated five billion monthly retail payment transactions in the country last year, over 2.6 billion were conducted through digital channels.
The central bank sees this growth as both an opportunity and a responsibility. By ensuring that fees are aligned with actual service delivery costs, it aims to support further uptake while making financial services more accessible to more Filipinos.BSP governor cites financial sector strength, vows reform continuity
The BSP’s regulatory efforts to improve digital transactions are part of a broader strategy to strengthen the financial system, which the central bank said closed 2024 with strong momentum.
In its report on the Philippine Financial System for the second half of 2024, the BSP highlighted the continued growth of supervised financial institutions, including banks, trust operations, and foreign currency deposit units. These gains, it said, have enabled institutions to keep delivering essential financial services to households and businesses alike.
“BSP’s policy reforms and collaboration, alongside improving macroeconomic and industry outlook, have enabled supervised entities to expand and meet Filipinos’ evolving financial needs,” BSP Governor Eli M. Remolona, Jr. said in a statement. “These efforts support a more resilient financial system.”
The report attributed sector-wide growth to a widening financial services network and advances in digital platforms. These trends, BSP noted, are enhancing customer experiences and increasing the reach of financial services, including to underserved and remote communities.
The BSP also outlined its continued focus on safeguarding the system against financial crime and cyber threats. It spotlighted the rollout of enhanced supervision mechanisms for money laundering and terrorism financing risks, as well as a cyber resilience roadmap and updated regulatory approaches for money service businesses and pawnshops.
Additionally, the lifting of the moratorium on the establishment of digital banks was cited as a forward-looking step, reinforcing the BSP’s commitment to innovation while maintaining oversight.
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