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BSP asks e-wallets, some banks to explain why they are not waiving transfer fees

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Jekki Pascual

ABS-CBN News

MANILA — The Bangko Sentral ng Pilipinas is now reviewing explanations sent by banks and e-wallet firms that have not fully complied with the BSP circular that urged financial institutions to adopt &quot;reasonable and fair pricing&quot; for money transfer fees.While many banks have already announced zero transfer fees, some banks and e-wallet providers have not. Two of the biggest are GCash and Maya, which only cut the InstaPay transfer fee to other banks to P10.Under the circular, transfer fees within the same bank or e-wallet should not be materially different from fees to other banks. Prior to the circular, transfer fees within the same bank or e-wallet were free, but a fee was charged to send money to other banks. The circular added that banks can charge a fee, but only the minimal switch cost, which is just about P1.50 per transaction.BSP has urged banks that did not waive their fees to send a report or justification on their pricing mechanism and a cost analysis to determine why they did not waive their fees.“We asked them to give us an explanation or an itemized breakdown on how their fees were constructed. So that we will see if it complies with circular 1238 or if it needs improvement,” said BSP Deputy Governor Mamerto Tangonan, who heads the BSP Payments and Currency Management Sector.Tangonan said banks and e-wallet firms submitted their reports last week and that the BSP is now validating the reports.He added that banks and e-wallets should all cut transfer fees because it is beneficial for the customers and the banks as well. He also said that banks and e-wallets can still earn with the other products they are offering, like loans, insurance and others.“Now that we have reduced the friction in the payments system, funds can now flow more freely within the system and therefore, any e-wallet provider or bank that can offer the consumers better savings products, better credit products, more affordable insurance and investment products, we will gain more customers,” he said.Tangonan said the options for those who have not yet complied are to increase their transfer fee for sending money within the same bank or e-wallet so that it will not be materially different from inter-bank fees. Or he said banks or e-wallets can just lower the rates further. In the end, he said it will be the people who will decide.“The consumers have a choice. If you don’t want A, then go to B,” he said.So far, Tangonan is happy that more banks have complied. He said the majority of the big banks covering around 90 percent of the total transaction volume have already lowered transfer fees.He said part of the circular is also to help merchants join the digital payments ecosystem, like reducing requirements, especially for small businesses. He said to achieve financial inclusion, efforts must be made both on the consumer side and the merchant side.

The BSP has urged banks that did not waive their fees to send a report or justification on their pricing mechanism and a cost analysis.

The BSP has urged banks that did not waive their fees to send a report or justification on their pricing mechanism and a cost analysis.

BSP asks e-wallets, some banks to explain why transfer fees not 'minimal'

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BSP asks e-wallets, some banks to explain why transfer fees not 'minimal'

Jekki Pascual,

ABS-CBN News

Published July 20, 2026 06:34 PM PHT

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Updated July 21, 2026 12:11 PM PHT

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bangko sentral ng pilipinas

banks

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transfer fee

instapay

gcash

maya

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