BSP maintains cap on PESONET, Instapay fees

MANILA, Philippines —The fees of electronic fund transfer services PESONET and Instapay have been kept on moratorium by the Bangko Sentral ng Pilipinas (BSP).

The central bank announced this in a statement released on Tuesday.

“The BSP encourages Filipinos to actively use their accounts for digital payments, savings, and investments. The central bank is working with the industry to bring more of our countrymen into the fold of the formal financial system,” BSP Governor Eli Remolona Jr. said in a statement.

Institutions intending to implement charges for new fund transfer services are required to seek approval from the BSP in advance. 

The country's central bank also said that these fees must be formally communicated to the BSP at least 60 days before they are implemented.

The Philippine Payments Management Inc., responsible for supervising PESONet and InstaPay, is obligated to monitor the regulatory compliance of its members and promptly inform the BSP of any concerns. 

Failure to comply is subject to penalties under the National Payment Systems Act and the New Central Bank Act.

Four banks, namely the Landbank of the Philippines, Bank of the Philippine Islands, Metropolitan Bank and Trust Co and Union Bank of the Philippines, waived fees on transfers of P1000 and below.

BSP also said that it will continue to work with the payments industry to lower or eliminate fees imposed on small electronic payments.

 “The reduction or removal of transfer fees for small e-payments supports our vision of digitalization and inclusivity. We are engaging the industry through dialogue to explore ways to reduce or completely eliminate fees for small-value transactions,” Remolona said.