InstaPay, PESONet fee hikes now allowed but BSP sets limits

MANILA – The Bangko Sentral ng Pilipinas (BSP) has lifted the moratorium on increases in InstaPay and PESONet transaction fees and issued new rules aimed at making electronic payment charges fairer, more transparent, and reflective of actual costs.

In Memorandum No. M-2026-025 issued on June 17, the BSP said the Monetary Board, through a resolution dated June 4, approved the lifting of the moratorium on fee increases for InstaPay and PESONet transactions.

The lifting of the moratorium will take effect concurrently with BSP Circular No. 1238, also issued on June 17, which provides amendments to the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities.

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“The lifting of the moratorium is grounded in the implementation of zero fees for small merchant payments, and the establishment of a pricing structure for person-to-person electronic fund transfers under the Circular which aims to reduce fees for this segment and provide parameters for responsible pricing and market conduct,” the BSP said.

“Consistent with the BSP’s broader policy direction to promote digital payments, financial inclusion, and innovation, the lifting of the moratorium enables a more responsive and sustainable pricing environment, while ensuring that adequate regulatory oversight and consumer protection mechanisms remain firmly in place,” it added.

Under the circular, BSP-supervised financial institutions (BSFIs) are required to adopt reasonable and fair market-based pricing mechanisms for electronic payment services.

The BSP said the pricing framework should uphold fairness across end-user groups and ensure that fees remain aligned with the actual cost of providing services.

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The circular also states that fees for electronic payments are expected to be lower than those charged for manual or over-the-counter (OTC) transactions, given the greater efficiency and cost-effectiveness of digital payment channels.

According to the BSP, BSFIs are still required to disclose fees for electronic payment services in accordance with Memorandum No. M-2018-013 issued in March 2018.

BSFIs may also be required to submit additional documentation to justify pricing mechanisms for fees deemed unreasonable following a review of their periodic disclosures.

Finance Secretary Frederick Go, meanwhile, said he is in favor of further reductions in digital transaction costs.

“Here in the Philippines, I get upset when I see that the transaction cost can go as high as PHP50. But I think the normal is between PHP10 to PHP20,” he said during a recent briefing.

Go said he is in discussions with industry stakeholders on possible ways to reduce costs further, adding that consumers should only shoulder switching fees.

“Digital payment should be fast, secure, convenient, and affordable,” he said.

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