BSP Summons Banks, E-wallets Over High Transfer Fees

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has summoned several banks and e-wallet operators this week to explain why their electronic fund transfer fees remain high or unchanged, even as more lenders move to waive InstaPay and PESONet charges. BSP Deputy Governor Mamerto Tangonan said the central bank has invited payment service providers that have yet to reduce their fees or whose charges appear high based on the BSP’s initial assessment. Tangonan said the BSP has observed that several institutions have yet to make adjustments, making their current fees appear non-compliant with the central bank’s circular. However, he stressed that the BSP has yet to make a final finding, as the institutions would first be given the opportunity to explain their pricing structures. The meeting is scheduled this week, he said. “Just so we’re on the same page. We’ll give them a chance to explain where they are, why (their pricing mechanisms are) like that,” Tangonan told reporters. The fee waiver comes after the BSP issued Circular 1238, which took effect on July 4 and introduced stricter rules on electronic fund transfer charges. Under the circular, transfer fees must be reasonable, cost-based and transparently disclosed, while small-value merchant payments through QRPh must remain free. Several major banks, including Bank of the Philippine Islands, Land Bank of the Philippines, Union Bank of the Philippines, Rizal Commercial Banking Corp. and Philippine Bank of Communications have already announced lower or waived fees following the issuance of the rules. UnionBank said InstaPay person-to-person transfers through UnionBank Online would be free beginning July 7, making it the latest addition to the bank’s zero-fee services. UnionBank customers already enjoy zero fees for PESONet transfers, UnionBank-to-UnionBank transfers, bills payments, telco load purchases and in-store payments via QRPh. Tangonan said the circular was issued after the BSP conducted a benchmark assessment of the cost structure of electronic fund transfers. Banks and payment service providers incur costs for systems, information technology, fraud management, cybersecurity and customer support. However, Tangonan questioned why same-bank transfers are often free while interbank transfers remain expensive, even though both services use many of the same systems and support infrastructure. He said the circular seeks to ensure that providers allocate common costs across all types of transfers instead of loading most of the expenses on interbank transactions. Off-us transfers refer to fund transfers made from one bank or e-wallet to another bank or e-wallet, unlike on-us transfers, which happen within the same institution. Tangonan said institutions that continue to charge P10 for off-us transfers should be able to justify the gap under the new circular. Asked why some e-wallet operators such as GCash and Maya still charge P10 for transfers, Tangonan said providers should ensure that their pricing is consistent with the circular. He said a provider that wants to charge P10 for off-us transfers would need to show that its same-bank or on-us transfer fee is also around P8.50, reflecting the allocation of shared costs across both types of transactions.