06-26-2026 
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The Philippines is undergoing a dramatic digital payments expansion—with transaction volumes nearly tripling and total value reaching PHP13.18 trillion (US$214.8 billion in the first five months of 2026—even as the central bank moves to keep transaction fees fair for everyday consumers.
The Philippines’ central bank wants to lower charges for digital transactions
Bangko Sentral ng Pilipinas (BSP) recently lifted a moratorium on increases in transaction fees for two key platforms—InstaPay and PESONet—while introducing new regulations to ensure fairer pricing for digital payments.
The BSP said that the Monetary Board has approved via a June 4 resolution the lifting of the Memorandum No. M-2026-025 on fee increases for InstaPay and PESONET transactions—the country’s official electronic fund transfer services.
“The lifting of the moratorium is grounded in the implementation of zero fees for small merchant payments, and the establishment of a pricing structure for person-to-person electronic fund transfers under the Circular which aims to reduce fees for this segment and provide parameters for responsible pricing and market conduct,” the BSP said.
“Consistent with the BSP’s broader policy direction to promote digital payments, financial inclusion, and innovation, the lifting of the moratorium enables a more responsive and sustainable pricing environment, while ensuring that adequate regulatory oversight and consumer protection mechanisms remain firmly in place.”
The new rule will take effect alongside the BSP Circular No. 1238, issued on June 17, and seeks amendments to the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities.
Under the new circular, BSP-supervised financial institutions (BSFIs) must established a reasonable and fair market-based pricing mechanism for digital payment services. In addition, it also explained that fees for electronic payments must be lower than those for manual or over-the-counter (OTC) transactions, given the automation and cost-effectiveness of digital payment channels.
Following the Memorandum No. M-2018-013, issued in March 2018, BSFIs must still disclose fees for digital payment services. They are also required to submit additional documentation to justify the pricing for fees deemed unreasonable after a review of their periodic disclosures.
The news comes amidst calls from Finance Secretary Frederick Go to cut interbank transaction fees to as low as PHP2 ($0.033).
“Here in the Philippines, I get upset when I see that the transaction cost can go as high as PHP50. But I think the normal is between PHP10 to PHP20,” he said during a recent briefing. “Digital payment should be fast, secure, convenient, and affordable. We’ve been talking to them (the BSP) about this. We want to level the playing field.”
Go revealed that he is in discussions with industry stakeholders to explore ways to reduce costs, noting that consumers should pay only for switching fees.
“I believe the BSP has the same sentiment on how to bring down transaction costs,” he added.
The Philippines sees rapid growth in digital payment transactions
Digital payment transactions via PESONet and InstaPay increased by PHP13.18 trillion ($214.8 billion) in the first five months of 2026, with transaction volumes tripling as more Filipinos turn to digital solutions for their daily payments. As of May, the combined transactions through PESONet and InstaPay jumped by PHP4.05 trillion ($66 billion), or 44.4%, compared to PHP9.13 trillion ($148 billion) in the same period last year, according to the latest data from BSP.
The total value of transactions processed through digital payment systems continues to grow, pushing the transaction volume to 3.48 billion in the first five months of 2026, a sharp increase from 1.21 billion during the same timeframe last year.
Transactions through PESONet reached PHP6.62 trillion ($107 billion) from January to May, marking an increase of PHP1.56 trillion ($25 billion), or 30.7%, compared to PHP5.06 trillion ($82 billion) in 2025. The volume of PESONet transactions also grew by 12.6%, reaching 52.5 million, up from 46.7 million.
InstaPay posted even stronger growth, with transaction values rising by PHP2.5 trillion ($40 billion) year-over-year to PHP6.56 trillion ($106 billion) from PHP₱4.06 trillion ($66 billion), representing an increase of over 60% compared to the same period in 2025. The volume of InstaPay transactions nearly tripled this year, soaring from 1.16 billion in 2025 to 3.43 billion.
PESONet and InstaPay were first introduced as automated clearinghouses in December 2015. They are part of the BSP’s National Retail Payment System (NRPS) framework.
The surge came following last week’s BSP lifting of its five-year freeze on digital transfer fees. With the lift, lenders can adjust the pricing for Philippines’ primary electronic fund channels, removing the ceiling the BSP had put in place by 2021.
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