The Bangko Sentral ng Pilipinas (BSP) clarified that Circular No. 1238 is about cost-based fair pricing, not a rule for zero-fee electronic fund transfers.
The BSP explained that banks and providers are not required to remove fees. Off-us person-to-person transfers are not limited to switch costs, and the circular should not be read as a strict formula.
Industry group FinTech Alliance PH welcomed the move, saying it gives clarity while supporting affordable, secure, and sustainable digital payments.
“We are grateful to the Bangko Sentral ng Pilipinas for this important clarification. Following constructive dialogue between the BSP Monetary Board Members and the FinTech Alliance PH, it is now clear that Circular No. 1238 is a cost-based fair pricing guideline, not a zero-based mandate,” said Lito Villanueva, Founding Chairman, FinTech Alliance PH.
“Affordability remains central to scaling financial inclusion, but it must go hand in hand with safe, reliable, and sustainable digital financial services,” Villanueva adds.
The Alliance added that the framework lets banks, fintechs, and payment providers continue investing in infrastructure, cybersecurity, innovation, and customer experience while keeping consumer protection in place.
FinTech Alliance PH is the largest fintech industry association in the country, with more than 170 members handling 95 percent of retail digital financial transaction volume.
Also Read: QR Ph is now ONE: BSP, PPMI unify QR codes
The BSP’s clarification is expected to build trust in digital payments, ensuring fees remain fair while providers keep services secure and reliable for consumers.
