Digital payments pricing reset begins

From AB Capital's The Opening Bell: Three Moves

Event

The Bangko Sentral ng Pilipinas (BSP) lifted the moratorium on InstaPay and PESONet fee increases, alongside a new pricing framework that introduces zero fees for small merchant payments and clearer rules for peer-to-peer (P2P) transfers. Finance Secretary Frederick Go also pushed for digital transaction fees to fall toward P1 to P2.

View

In our view, the policy is positive for digital payments adoption, but mixed for banks and payment providers. Lower small-merchant fees support inclusion and cash displacement, while flexible pricing gives providers room to recover costs. The challenge is balancing affordability with sustainable network economics.

Catalyst

Key sensitivities are final fee schedules, switching costs, bank compliance, and merchant adoption. If transfer fees fall materially from current levels of up to P50, we think digital usage could accelerate. However, lower unit fees may pressure non-interest income unless volume growth offsets the decline.

Action

We think the read-through is constructive for fintech penetration and e-commerce activity, but mildly negative for banks reliant on transaction fees. Favor players that can scale volumes, cross-sell deposits or loans, and monetize payments through broader customer relationships rather than high transfer charges.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.