Why Are Philippine Banks Suddenly Waiving Transfer Fees?

(SPOT.ph) We’re sure you’ve seen the wave of good news: Your banking app has suddenly stopped charging fees for InstaPay or PESONet transfers. It’s not because banks woke up feeling generous—nor is it because they felt pressured that other banks did so.

This wave of free transfers is actually happening because of a new Bangko Sentral ng Pilipinas (BSP) rule that took effect on July 4, 2026 that makes the old P10 to P50 transfer fees much harder to defend. This was not exactly a surprise move: BSP Deputy Governor Mamerto Tangonan said that banks had requested a two-year transition period to adjust to the removal of interbank transfer fees as early as February 2025. BSP did not give them that long.

Under BSP Circular No. 1238, fees for digital payments must be based on actual processing costs, stay lower than over-the-counter charges, and make sure the receiver gets the full amount sent—no surprise deductions on the other end.

That said, BSP said banks and e-wallets can still charge fees, but they now have to show those fees actually make sense, i.e., the cost of routing the transaction through the payment network. BSP officials said that cost is only estimated at around P1.50 for banks.

In light of this new rule, most Philippine banks have already permanently reduced or removed fees for InstaPay and PESONet transfers.

Also read: Wrong Send? What to Do If You Transfer Money to the Wrong Person

E-wallets are also subject to the same BSP rule, but it's unlikely that they will waive transfer fees completely.

This is because the BSP gives banks a clearer reason to waive the fee. In its pricing memo, the central bank said online payments are generally just a side service for banks, meaning they are able to cover the costs with income from their main products. Think deposits, loans, cards, insurance, investments—the other things banks can still earn from even if your transfer is free.

BPI President TG Limcaoco made a similar point: he said free transfers could bring in more customers and more activity, which could help BPI offer other services.

E-wallets do not always have that same cushion. As mentioned above, the BSP rule still allows payment providers to charge for the actual cost of moving money, which can include the system behind the transfer, security checks, fraud prevention, and customer support.

That helps explain why some e-wallet fees are getting cheaper, but not disappearing entirely. GCash and Maya have already lowered InstaPay transfer fees from P15 to P10 starting July 4 and July 6, respectively. Same-wallet transfers remain free in both apps.

Also read: Banks Can Now Freeze Suspicious Money Transfers Under New BSP Rule