BSP pushes lower digital payment fees

MANILA — The Bangko Sentral ng Pilipinas is moving to make digital transactions more affordable by requiring fairer and more transparent fees for electronic payments.

In a press release dated June 28, the BSP said Circular No. 1238, issued on June 17, requires fees for person-to-person e-payments across banks, e-wallet operators, and other payment service providers to be not materially different from fees charged for transfers within the same institution.

Transfers within one bank or e-wallet are often free, so any pricing difference should mainly reflect fees paid to network switch operators, including BancNet for InstaPay and the Philippine Clearing House Corp. for PESONet.

BSP-supervised financial institutions must also prepare an analysis of their costs in delivering electronic payment products and services, which the central bank may require during oversight activities.

BSP Governor Eli M. Remolona Jr. said, “Lower fees will encourage more Filipinos and businesses to use and benefit from digital transactions. The BSP sees this as a step toward making digital transactions even more mainstream. At the same time, greater adoption can help improve efficiency across the payments system, reducing costs for everyone.”

The circular responds to findings from the BSP’s Consumer Expectations Survey in the fourth quarter of 2025, which showed that one in three Filipino consumers consider high fees a leading barrier to using digital payments more frequently.

The new rules come after the BSP lifted a moratorium on fee increases for InstaPay and PESONet transactions, with the central bank tying the change to Circular No. 1238’s requirement that fees be reasonable, transparent, and aligned with actual costs.

The circular amends the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities, or RFMPAA.

It also amends the RFMPAA to expand transaction points where users can make digital payments, a move aimed at accelerating the growth of the country’s digital payments ecosystem.

Under the circular, micro businesses such as sari-sari stores will be allowed to open accounts using the National ID or any official document.

The BSP said this would help more micro businesses accept digital payments and access other financial services.

Micro businesses covered by the policy include end users who use either a merchant or personal account to accept electronic fund transfers and meet the definition of micro-enterprises under the Magna Carta for Micro, Small and Medium Enterprises, or Republic Act No. 9501, and other related rules.

The monthly aggregate gross receipts of micro merchants must not exceed PHP 250,000.

An official document, as defined under Section 904 of the Manual of Regulations for Banks and Section 904-Q of the Manual of Regulations for Non-Bank Financial Institutions, is “any document or information reduced in writing which the covered person deems sufficient to establish the client’s identity.”

For small or informal merchants, this may include the National ID of the proprietor and documents or information showing the existence of the business, such as barangay permits, self-attestation, digital storefronts, social commerce profiles, or sustained wallet activity.

The BSP has been pushing wider adoption of digital payments as part of its broader financial inclusion agenda, with earlier digital payments roadmaps targeting a shift of at least half of retail payment transactions to digital channels and broader access to transaction accounts among Filipino adults.