Fair Pricing in Focus: BSP’s Drive to Cut Digital Transaction Costs
The Bangko Sentral ng Pilipinas (BSP) has issued Circular No. 1238, s. 2026, mandating fair and transparent digital transaction fees across banks and e-wallets.
The new rules require BSP-supervised financial institutions (BSFIs) to justify their charges based on actual costs, ensuring that fees for person-to-person (p2p) transfers are not materially higher than internal transfers.
This is a major step toward lowering costs for consumers and boosting adoption of digital payments.
BSP: Fees Should be Transparent and Fair
Circular No. 1238 amends the National Retail Payment System (NRPS) Framework and the Regulatory Framework for Merchant Payment Acceptance Activities.
It requires BSFIs to adopt cost-based pricing mechanisms for electronic fund transfers (EFTs).
Specifically, fees for “off-us” transfers—transactions between different institutions—must not be materially different from “on-us” transfers within the same institution, except for switch costs paid to clearing houses.
The BSP also requires institutions to maintain detailed cost analyses, which regulators may review during oversight activities.
Fair pricing, as defined by BSP, is grounded in four principles: reasonableness, transparency, market-based alignment, and proportionality to actual costs.
This means that institutions cannot arbitrarily set fees to maximize profit at the expense of consumers. Instead, fees must reflect the real cost of infrastructure, fraud prevention, and clearing operations.
The BSP prohibits cross-subsidization, where one group of users bears the cost of serving another.
The circular also prohibits hidden charges and requires full transparency in fee disclosures. Recipients of person-to-person transfers must receive the full amount credited to their accounts, free of deductions.
Moreover, electronic payment fees must be lower than over-the-counter charges, reflecting the efficiency of digital channels.
Finance Roles in Play
Clearing houses are central to the system.
BancNet serves as the clearing switch operator for InstaPay, while the Philippine Clearing House Corporation (PCHC) operates PESONet. These entities process interbank transfers and ensure interoperability.
Under BSP rules, clearing houses must adopt equitable pricing, maintain reliable infrastructure, and facilitate seamless transactions across institutions.
Their fees are the only legitimate basis for differences between on-us and off-us transfers.
On the other hand, BSFIs must justify their transaction fees with quantitative cost analyses, covering IT infrastructure, fraud prevention, and clearing costs.
They are required to disclose fees transparently and may be asked to submit documentation if charges appear unreasonable. The BSP has emphasized that BSFIs must align fees with actual expenses, ensuring consumers are not overcharged.
How Fees Vary Across Institutions
In practice, fees vary across institutions.
GCash and Maya both charges around ₱15 per InstaPay transfer to banks, while wallet-to-wallet transfers remain free. Coins.ph, another BSP-regulated platform, has similar fee structures but emphasizes crypto-linked transfers.
Maya, as a licensed digital bank, offers higher savings yields, while GCash dominates merchant acceptance.
These differences demonstrate how institutions balance fees with ecosystem strengths. GCash leverages its massive user base and merchant network, Maya emphasizes banking services, and Coins.ph focuses on crypto integration.
However, BSP’s circular ensures that all institutions must align fees with actual costs, preventing excessive charges.
Just recently, LANDBANK has reduced its InstaPay fees from ₱15 to ₱8, and waived charges for certain online government payments. This was widely reported as a direct response to BSP’s call for lower fees and consumer complaints.
BDO Unibank and Metrobank both also reduced their InstaPay fees in 2025 following BSP’s call for more affordable digital transfers. BDO cut its fees from ₱25 to ₱10 for certain transactions, while Metrobank lowered charges from ₱25 to ₱15.
Another notable case was UnionBank, which in 2025 announced a reduction in PESONet fees for retail customers, citing BSP’s push for fair pricing and consumer feedback.
UnionBank positioned the move as part of its digital inclusion strategy, highlighting that lower fees would encourage more Filipinos to adopt online banking.
Filipino Market Sentiment on Digital Fees
Unsurprisingly, consumer sentiment strongly favors lower fees.
The Bangko Sentral ng Pilipinas (BSP) Consumer Expectations Survey captures the economic outlook of Filipino households, including their views on inflation, income, and financial services.
In its 2025–2026 reports, one recurring theme was that transaction costs remain a deterrent to digital payment adoption.
Respondents noted that while digital transfers are convenient, fees often discourage frequent use, especially among lower-income households.
This sentiment is echoed in BSP’s broader push for financial inclusion.
Governor Eli Remolona Jr. has publicly stated that the current model of charging per transaction is “the wrong model,” arguing that it penalizes consumers and limits the benefits of network externalities.
Instead, BSP is studying subscription-based fee structures, where users pay a fixed monthly cost rather than per-transfer charges. This approach could significantly reduce costs for frequent users and encourage broader adoption of digital payments.
At present, InstaPay transfers cost between ₱8 and ₱75 per transaction, while PESONet transfers can range from ₱8 to ₱600, depending on the institution.
Wallet-to-wallet transfers within platforms like GCash and Maya are free, but interbank transfers incur fees. Consumers often complain that these charges erode the convenience of digital payments, particularly when sending small amounts.
Surveys and anecdotal reports suggest that one in three Filipinos cite high fees as a barrier to using digital payments more frequently.
Many prefer cash transactions or informal channels to avoid charges, undermining BSP’s goal of a cash-lite economy. The sentiment is especially strong among small merchants and rural users, who see fees as disproportionately burdensome relative to transaction values.
The push for fair pricing is not just regulatory—it responds directly to consumer demand. Lower fees could accelerate adoption of digital payments, particularly among underserved populations.
With digital payments already accounting for more than 50 percent of retail transactions in 2026, reducing fees could push adoption even higher, supporting BSP’s target of 70 percent by 2028.
Market sentiment also indicates that consumers value transparency as much as affordability. Hidden charges or unclear fee structures erode trust, while clear, upfront disclosures build confidence.
This is why BSP’s Circular No. 1238 emphasizes not only fair pricing but also transparent communication of fees.
Lower Fees with DOPAY
DOPAY, as a BSP-supervised financial institution, fully complies with Circular No. 1238 and the principles outlined in the clearing switch operations framework. Through the DOPAY app, users can send money via wallet-to-wallet transfers or cross-border crypto wallets with minimal fees, ensuring affordability and transparenc
Aligned with BSP’s fair pricing framework, DOPAY guarantees that consumers receive the full value of their transactions without hidden charges.
Our dual offering—domestic e-wallet transfers and international crypto-enabled remittances—positions DOPAY as a cost-effective and compliant alternative in the Philippine digital finance ecosystem.
See the full list of our fees here.
Our platform also addresses the issue of financial inclusion. By offering low-cost digital transfers, DOPAY ensures that even Filipino households in rural areas can access remittances without incurring high fees or long processing times.
Download the DOPAY app today!
