BSP Expects More Banks to Eliminate InstaPay Fees as New Digital Payment Rules Take Effect

 

The Bangko Sentral ng Pilipinas expects more banks to remove or reduce InstaPay transfer charges in the coming days as the country's updated electronic payment pricing framework begins to reshape the digital banking landscape.

BSP Governor Eli Remolona Jr. said additional financial institutions are likely to announce lower or zero transfer fees shortly after the implementation of Circular 1238. The forecast follows recent decisions by Bank of the Philippine Islands and Rizal Commercial Banking Corp. to offer free InstaPay transfers to eligible users on their digital banking platforms.

According to Remolona, the BSP anticipates further announcements within days as banks align their pricing with the regulator's new guidelines. The initiative is expected to accelerate digital payment adoption by making online fund transfers more affordable for consumers.

Lower costs are expected to encourage more Filipinos to use electronic payment channels. Payment networks become increasingly valuable as participation grows, much like a transportation system that becomes more efficient when more routes and passengers are connected. Reducing transfer fees removes one of the remaining barriers that discourages frequent digital transactions.

The trend is already extending beyond traditional banks. GCash reduced its InstaPay transfer fee from P15 to P10 starting July 5, while Maya will implement the same P10 fee beginning July 6. These adjustments reflect a broader industry response as financial institutions adapt to the BSP's revised pricing framework.

Among the banks making significant changes is RCBC, which has introduced free person-to-person InstaPay transfers across its digital platforms beginning July 4, subject to specific conditions.

Customers using the RCBC Pulz app can transfer funds to other banks, digital wallets, and participating financial institutions without paying transfer fees for up to 30 transactions each month. Each transaction must be worth at least P100. Once the monthly allocation is exhausted or if a transfer falls below the minimum amount, the standard P10 fee will apply.

Meanwhile, users of DiskarTech, RCBC's financial inclusion platform, will continue enjoying unlimited free InstaPay transfers without any minimum transaction amount or monthly cap. The bank said the move supports its objective of making digital financial services more accessible while promoting wider adoption of cashless payments across the country.

RCBC also emphasized that lowering transaction costs is part of its long-term strategy to provide practical and affordable digital banking solutions for Filipino consumers.

The BSP's new pricing framework, introduced through Circular 1238 under the National Retail Payment System, requires banks and payment service providers to adopt electronic transfer fees that are fair, reasonable, and supported by the actual cost of delivering the service.

The circular also strengthens consumer protection by limiting excessive pricing differences. Fees for sending money to another bank or e-wallet should generally remain comparable to transfers within the same institution, except for legitimate switching costs incurred during processing.

In addition, the BSP requires electronic payment charges to remain lower than over-the-counter or manual transaction fees. The regulator also mandates that recipients of person-to-person transfers receive the complete amount sent without deductions.

BPI has likewise expanded its fee-free digital banking services. Effective July 1, the bank permanently removed transfer charges for both InstaPay and PESONet transactions made through the BPI mobile app. Before the change, customers paid P10 for InstaPay transfers and P50 for PESONet transactions. Verified VYBE users also continue to enjoy free transfers to other banks and e-wallets.

As more financial institutions respond to the BSP's updated regulations, consumers can expect increased competition in digital banking services. The growing number of fee-free transfer options could further strengthen the country's transition toward a more efficient and accessible cashless payment ecosystem.