The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, said lowering transaction costs could encourage greater use of digital payments in the Philippines, but stressed that affordability is only one of several barriers preventing Filipinos from participating fully in the formal financial system.
The central bank said financial inclusion goes beyond increasing account ownership and digital transactions, with financial services needing to be accessible, affordable, understandable, and useful for all Filipinos.
“True digital financial inclusion means ensuring that financial services are accessible, affordable, understandable, and useful for all Filipinos,” the BSP said.
Digital payments serve as an important gateway to the broader financial journey because they are the most widely used financial service among Filipinos, the central bank said.
Payments can provide an entry point into the formal financial system and pave the way for other services, including savings, credit, investments and insurance.
Affordability remains particularly important. The BSP said surveys indicate that cost is among the key barriers cited by non-users of digital payments, while studies show that lower transaction fees can encourage greater usage.
However, the central bank said cost is not the only barrier. Account-opening requirements, maintaining balances, connectivity, access points, financial and digital literacy, consumer trust, safety, and ease of use can all affect whether Filipinos are able and willing to participate in the formal financial system.
The BSP said it continues to work with the government and private sector to address these barriers.
Among its initiatives are Basic Deposit Accounts, which are easy to open, require an opening amount of not more than 100 pesos ($1.75), and have no maintaining balance or dormancy charges.
The central bank has also led the creation of the country’s interoperable digital payments system, allowing Filipinos to perform more kinds of transactions with greater ease, safety and affordability.
Its Paleng-QR Ph Plus program promotes QR payments among market vendors, tricycle drivers and other community-based merchants, seeking to make cashless payments more accessible and convenient for everyday transactions.
The BSP is also promoting financial and digital literacy through the BSP E-Learning Academy and broader financial education initiatives, alongside consumer protection measures aimed at building trust in the financial system.
At the same time, it is promoting competition and responsible innovation among banks, e-wallets, fintech firms and other providers so consumers have greater choice and can benefit from better and more affordable services.
The BSP said increasing access and usage is not an end in itself, with the broader goal being to improve the financial health of Filipinos.
Financial services should help people manage day-to-day finances, save for their needs, access appropriate credit and insurance, withstand financial shocks and build a more secure financial future, it said.
As lead implementer of the National Strategy for Financial Inclusion, the BSP brings together government agencies and private-sector partners to address barriers and ensure that financial services translate into meaningful improvements in people’s lives.
The emphasis on affordability suggests that the next phase of the Philippines’ digital finance push may depend less on simply bringing people into the system and more on making digital services economical enough for regular use.
While widespread e-wallets and interoperable payment infrastructure have lowered some barriers, transaction costs, connectivity, and trust could determine whether occasional digital-payment users eventually adopt higher-value financial products such as savings, credit, insurance, and investments.