Lowering Digital Payment Fees Could Drive Greater Use, RCBC Survey Finds

Lowering fees for digital payments can significantly increase their use, a new survey has found, suggesting that payment pricing affects more than just the cost of a transaction. A survey of 15,000 mobile banking users at Rizal Commercial Banking Corp. (RCBC) showed that users doubled their transactions after the bank reduced its fees to zero. This finding highlights the critical role of pricing strategies in efforts to promote the adoption of digital payments across the Philippines. The Philippine government is actively encouraging the adoption of digital payments to foster a cashless society. However, fees associated with some services can still be a barrier for users. The RCBC survey's results indicate that reducing or eliminating fees can serve as a powerful incentive for individuals, especially those with lower incomes or who conduct frequent small transactions, to transition to digital payment methods. Given that remittances from overseas constitute a significant portion of the Philippines' GDP, the widespread adoption of cheaper and more convenient digital payment methods for these remittances and for everyday domestic transactions is expected to enhance overall economic efficiency. From a financial inclusion perspective, removing fee barriers is also an effective way to bring previously unbanked or underbanked populations into the digital financial ecosystem.