UnionBank makes InstaPay transfers free

Union Bank of the Philippines (UnionBank) on Tuesday announced that it is waiving fees for InstaPay transfers.

“Beginning July 7, InstaPay person-to-person transfers via UnionBank Online will be FREE, making it the newest addition to UnionBank's lineup of ZERO FEE services,” UnionBank said in an advisory.

“Customers can already enjoy zero fees for PESONet transfers, UnionBank-to-UnionBank transfers, bills payments, telco load purchases, and in-store payments via QRPh. With this latest update, InstaPay transfers will also be free for UnionBank Online users,” the bank added.

UnionBank joins LandBank, BPI, and RCBC in eliminating fees for InstaPay interbank transfers.

InstaPay, an electronic fund transfer (EFT) system that enables individuals to transfer funds between banks in real time, was launched by the Bangko Sentral ng Pilipinas (BSP) in 2018.

Under BSP Circular No. 1238, which took effect on Saturday, July 4, any difference between intrabank and interbank transfer fees should reflect only the actual "switch cost," or the cost of processing a transaction through a payment network.

The BSP estimates the switch cost at P1.50 per transaction. This means banks that already offer free intrabank transfers may charge no more than P1.50 for interbank transfers.— MCG, GMA News