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PhilStar Business

BSP sets rules on digital transaction fees

Banks and other financial institutions will have to justify fees on electronic fund transfers as the Bangko Sentral ng Pilipinas (BSP) set new pricing rules for digital payments, following the lifting of the moratorium on fee increases for InstaPay and PESONet transactions.

Context & Analysis

The shift away from a fee moratorium marks a pragmatic recalibration in how the Philippines manages its payment infrastructure. InstaPay and PESONet have long served as the national plumbing for digital money movement, handling everything from cross-island remittances to SME supplier settlements. Keeping those rails artificially cheap supported financial inclusion during the pandemic-driven digital surge, but maintaining legacy systems, upgrading cybersecurity, and scaling transaction capacity carry real operating costs. The central bank’s new requirement that institutions justify pricing signals a move toward transparent cost recovery rather than open-ended price freedom.

For business owners, this changes how cash flow planning works. Many micro and small enterprises run on thin margins and rely on instant or next-day transfers to keep operations moving. When fees attach to routine payments, the burden often gets baked into product pricing or absorbed as reduced working capital. Professionals managing corporate treasuries will need to audit their payment mix, potentially consolidating transfers or negotiating corporate rates with their primary banks. The rule also pressures banks to compete on service quality, not just network access, since opaque or unjustified charges could trigger consumer complaints that draw DTI or SEC scrutiny.

The broader regulatory landscape is already shifting toward a more mature digital economy. Payment system operators and traditional banks now share space with licensed fintech providers and electronic money issuers, all competing for transaction volume. The BSP’s framework likely aims to prevent fee fragmentation while preserving the stability of national payment rails. What matters next is how strictly the central bank enforces the justification requirement and whether it publishes benchmarking data or cost-recovery guidelines. If pricing becomes highly variable across institutions, expect SMEs to accelerate adoption of alternative settlement channels. Watch for follow-up directives from the BSP’s payment systems group and any industry pushback from banking associations or trade groups concerned about compliance costs. The balance between sustainable infrastructure funding and keeping digital payments accessible will define how smoothly the Philippine economy transitions from a cash-heavy past to a transaction-driven future.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: philstar.com

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