Could Online Bank Transfer Fees be Permanently Waived Soon? The BSP Is Working On It

(SPOT.ph) Looks like you might want to prepare a goodbye to InstaPay and PISONet, as online transfer fees between Philippine banks could be free soon. 

The Bangko Sentral ng Pilipinas has proposed to remove small value transaction fees for electronic fund transfers in a bid for more financial inclusion in the country—a move welcomed by the Bankers Association of the Philippines. If approved, it will cover mobile-to-mobile and QR transactions.

Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said paying P5 to P20 per transaction is significant, especially for small value transactions of less than P500, which is why the BSP is looking to “find a cost-sharing system” between concerned financial institutions.

Among the BSP’s proposed incentives is to lower the reservable liabilities that banks are required to keep with the central bank which cannot be lent out, in exchange for free money transfers.

“We’re literally bribing the banks to subsidize the small transactions,” Medalla said during the Philippine Chamber of Commerce and Industry forum on Monday, February 27. “From what I hear from the BAP, they are receptive to this. I look forward to more and more digital payments, especially the poor using their accounts, which have grown significantly.”

The current reserve requirement ratio is currently at 12% for big banks and 14% for non-banks as of January 3. It seems that the BSP’s "bribery" is working, as BAP President Antonio Moncupa Jr. also expressed his support to waive bank fees. 

“While transfer fees are determined by each bank, and the need to cover cost of technology, infrastructure, cybersecurity, consumer education and charges by the switch operator are imperative, the BAP maintains close collaboration with the BSP and stakeholders to ensure that the ultimate goal of financial inclusion is attained in a way that is efficient and sustainable,” Moncupa was quoted as saying.

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The complete list of bank transfer fees in the Philippines

There’s no official timeline as to when the BSP will be turning this proposal into reality, so we have to continue bearing the cost of online transfer fees for now.

Currently, most banks make use of InstaPay and PESONet for online money transfers, with fees ranging from P5 to as much as P600 for foreign banks. According to BSP, the value of electronic fund transfers via InstaPay and PESONet surged 36% to P955.9 billion in January 2023 compared to last year.

Below is BSP’s list of corresponding transfer fees through digital channels as of December 31, 2022.

Free money transfers are also available for selected banks and non-banks. There’s GrabPay and GPay for InstaPay and CIMB Bank, East West, HSBC, Philippine Business Bank, Tonik Digital Bank, and Union Bank for PESONet.

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