Banks are dropping transfer fees. Here’s why it took so long.
Major Philippine banks are eliminating transfer fees for InstaPay and PESONet transactions following new central bank guidelines. The move aims to boost the adoption of digital payments, which saw a growth slowdown in 2024.
Why it matters
Reducing transaction costs is a critical strategy for the Bangko Sentral ng Pilipinas to meet its national goal of transitioning the majority of retail payments to digital platforms by 2028.
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MANILA, Philippines – The P10 or P15 transfer fee for moving money between banks is finally disappearing, but why is it only happening now?
As of Friday, July 17, at least 14 universal and commercial banks had waived both InstaPay and PESONet fees for individual customers, according to the Bangko Sentral ng Pilipinas (BSP). The list includes the big players: BDO, BPI, Metrobank, UnionBank, Landbank, PNB, Security Bank, RCBC, China Bank, and EastWest.
The zero-fee wave followed BSP Circular No. 1238, which changed how financial institutions may charge for person-to-person transfers. Basically, if sending money to another account within the same bank is free, then sending it to a different bank should just reflect the additional switch cost. For InstaPay transfers, that switch cost is around P1.50.
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