The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, is moving to make digital transaction fees fairer and more transparent by requiring banks, e-wallet operators and other payment service providers to justify how they price electronic payment services.
Under Circular No. 1238, fees for person-to-person electronic payments across different banks, e-wallets and payment service providers should not be materially different from fees charged for transfers within the same institution.
The BSP said any pricing difference should mainly reflect fees paid to network switch operators, such as BancNet for InstaPay and the Philippine Clearing House Corp. for PESONet.
Transfers within the same bank or e-wallet are often free, while interbank and inter-wallet transfers typically carry fees, a cost that the central bank said remains a barrier to wider adoption of digital payments.
BSP-supervised financial institutions will also be required to maintain an analysis of the costs involved in delivering electronic payment products and services. The central bank may request the analysis as part of its oversight activities.
“Lower fees will encourage more Filipinos and businesses to use and benefit from digital transactions,” BSP Governor Eli Remolona said in a statement.
“The BSP sees this as a step toward making digital transactions even more mainstream. At the same time, greater adoption can help improve efficiency across the payments system, reducing costs for everyone,” he added.
The circular follows findings from the BSP’s Consumer Expectations Survey in the fourth quarter of 2025, which showed that one in three Filipino consumers viewed high fees as a leading barrier to using digital payments more frequently.
The new rules amend the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities, as the central bank seeks to accelerate the growth of the country’s digital payments ecosystem.
The BSP also amended rules to expand the number of transaction points where users can make digital payments.
Under the circular, micro businesses such as sari-sari stores will be allowed to open accounts using the National ID or another official document.
The BSP said this could help more small and informal merchants accept digital payments and gain access to other financial services.
Micro merchants are defined as end-users using either a merchant or personal account to accept electronic fund transfers, with monthly aggregate gross receipts not exceeding 250,000 pesos.
For small and informal merchants, acceptable documents may include the proprietor’s National ID, barangay permits, self-attestation, digital storefronts, social commerce profiles or evidence of sustained wallet activity.
