BSP rolls out rules for lower digital transfer fees, free payments for small merchants

Filipinos can expect lower digital fund transfer fees soon as the Bangko Sentral ng Pilipinas (BSP) rolled out new regulations that limit such fees and require free processing for small merchant payments in a bid to make digital transactions more affordable.

Under Memorandum 2026-025 dated June 17, 2026, the Monetary Board of the BSP lifted the moratorium on changes to InstaPay and PESONet transaction fees, following the rollout of zero-fee payments for small merchant payments.

The memorandum implements provisions under Circular 1238, which provides that small merchants should not be charged for receiving digital payments to encourage wider use of cashless transactions among businesses.

The same circular also provides that transfers sent to another bank should not be significantly higher than those sent within the same bank, with the only allowable difference being the actual processing “switch cost” or the actual cost of processing the transaction through a payment network.

It also mandates that all digital transaction fees be based on actual processing costs, remain lower than over-the-counter banking fees, and ensure that recipients receive the full amount sent without deductions.

“Consistent with the BSP’s broader policy direction to promote digital payments, financial inclusion, and innovation, 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,” BSP deputy governor Mamerto Tangonan said in the memorandum.

Tangonan said in February 2025 that banks had sought a two-year transition period to adapt to the proposed removal of interbank transfer fees, which remains subject to a Monetary Board decision. —LDF, GMA News