The Bangko Sentral ng Pilipinas (BSP) announced that it will be eliminating fees on certain electronic fund transfers, specifically for personal transactions up to a specified limit and for payments to micro-merchants.
This move is in line with the Financial Products and Services Consumer Protection Act, the National Payment Systems Act, and the New Central Bank Act, aiming to promote greater financial inclusion and accessibility.
The BSP defines “personal transactions” as fund transfers between individuals for personal, family, or household purposes, typically not exceeding ten transactions per week.
However, once this threshold is exceeded, fees may apply.
“Micro-merchants” are defined as businesses with monthly gross receipts not exceeding PHP 250,000.
This initiative is expected to benefit consumers and small businesses by reducing the cost of digital transactions.
These changes will take effect by April 2025, providing payment service providers time to adjust their policies and systems.
Senate President Francis “Chiz” Escudero expressed support for the BSP’s decision, noting that the removal of these fees is long overdue.
He emphasized that while individual transaction fees may seem small, they can add up over time and represent a significant savings for consumers.
Escudero also suggested that raising the thresholds and expanding the coverage of the fee removal would benefit more people and businesses.
He highlighted the rapid adoption of digital payments, pointing out that the share of digital payments in retail transactions has grown to nearly 53% of the total in the country.
Escudero added that by 2023, the number of monthly transactions will surpass 2.6 billion, equating to 3.6 million transactions per hour—a reflection of the nation’s shift to digital payments.
He stressed the importance of zero fees for personal transfers and payments to small businesses, as these measures support grassroots economic growth without costing the government.
The moratorium on fee increases for InstaPay and PESONet transactions will also be lifted once payment service providers demonstrate full compliance with the new regulations.
Featured image credit: Edited from Freepik