Bangko Sentral ng Pilipinas (BSP) has introduced new regulations to reduce digital transfer fees across the Philippines market while guaranteeing zero fee payments for small merchants, as reported by GMA News Online.

Central bank officials issued Memorandum 2026-025 on June 17, 2026, lifting a long-standing pricing moratorium on the InstaPay and PESONet networks.

Circular 1238 provisions within this policy shift dictate that financial institutions cannot charge small merchants for receiving electronic payments.

Regulators aim to accelerate cashless transaction adoption among domestic businesses by removing these processing overheads completely.

Financial institutions must now base interbank transaction charges on actual processing costs or network switch fees.

Regulators established that sending funds to another bank should not cost significantly more than internal transactions.

Rules also mandate that digital transaction charges remain lower than over the counter banking fees.

Senders are now guaranteed that recipients will receive their full transaction amounts without any backend deductions.

“The lifting of the moratorium enables a more responsive and sustainable pricing environment, while ensuring that adequate regulatory oversight and consumer protection mechanisms remain firmly in place,” said Mamerto Tangonan, Deputy Governor, BSP.

Banking firms previously requested a transition period in February 2025 to adapt to the potential elimination of interbank fees.

A final decision regarding the complete removal of interbank transfer costs remains pending with the Monetary Board.

Featured image: Edited by Fintech News Philippines based on an image by FestArt via Magnific.