The Bangko Sentral ng Pilipinas (BSP) has lifted its freeze on fee hikes for InstaPay and PESONet transfers, putting new rules in place to keep digital payments fair and cost-based.
Under Circular No. 1238, banks and payment providers must set fees based on actual costs. Off-us transfers, or those between different institutions, can’t be priced much higher than on-us transfers, except for direct switch costs.
Safeguards are in place. Person-to-person transfers must be received in full without deductions. Electronic payment fees must stay lower than manual or over-the-counter transactions. Small merchant payments will remain free.
The BSP is also opening the door for qualified banks and e-money issuers to run digital financial marketplaces. To qualify, providers need an advanced license, at least ₱1 billion in capital, and three unaffiliated providers in their marketplace.
Digital transactions continue to climb. Combined InstaPay and PESONet transfers hit ₱13.1 trillion in value and 3.5 billion in volume as of May 2026, up 44% year-on-year. In 2024, digital payments made up 57.4% of retail transactions, with a government target of 60–70% by 2028.
Finance Secretary Frederick Go also wants to cut transaction costs from ₱10–50 down to ₱2–5 per transfer, achievable if switching fees drop to around ₱1.50.
Also Read: BSP makes it easier for small and informal merchants to use digital payments
With these changes, BSP expects wider adoption of digital payments, stronger financial inclusion, and more affordable cashless transactions for everyday users.
