BSP maintains cap on Instapay, Pesonet fees

BSP maintains cap on Instapay, Pesonet fees
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THE Bangko Sentral ng Pilipinas (BSP) has kept the moratorium on Instapay and PesoNet fees.

In a monetary board resolution dated Dec. 7, 2023, the BSP maintained the moratorium on Instapay and PesoNet fees, which was originally imposed on Dec. 28, 2021. This measure is meant to promote financial digitalization.

“The BSP encourages Filipinos to actively use their accounts for digital payments, savings and investments. The central bank is working with the industry to bring more of our countrymen into the fold of the formal financial system,” said BSP Gov. Eli Remolona Jr.

PesoNet is a batch electronic funds transfer service, serving as an alternative to checks and recurring payments, while InstaPay is a real-time, low-value digital payments facility that replaces cash transactions.

Transfers via PesoNet have no maximum limit and are posted by the end of the day. Meanwhile, InstaPay allows real-time fund transfers of up to P50,000 per transaction.

Instapay charges varying fees from P8 to P25, while PesoNet charges from P8 to P600 for individual accounts.

Approval needed

The BSP said institutions planning to introduce fees for new fund transfer services shall apply for prior BSP approval. These fees must also be reported to the BSP 60 days before implementation.

Moreover, a transfer fee that is currently waived may only be restored up to the amount reported to the BSP before the waiver.

The Philippine Payments Management Inc., the industry body that oversees the operation of PesoNet and InstaPay, is tasked to monitor the regulatory compliance of its members and promptly report any issues to the BSP for appropriate action.

Non-compliant members shall be subject to the BSP’s supervisory and enforcement actions under the National Payment Systems Act and the New Central Bank Act, as amended.

The BSP will also continue to work with the payments industry to lower or eliminate fees imposed on small electronic payments.

“The reduction or removal of transfer fees for small e-payments supports our vision of digitalization and inclusivity. We are engaging the industry through dialogue to explore ways to reduce or completely eliminate fees for small-value transactions,” said Remolona.

Consequently, the moratorium on InstaPay and PesoNet fees shall be lifted, subject to BSP review, when zero fees for small e-payment transactions have been implemented by the payments industry.

This is consistent with the BSP’s commitment to achieve a cash-lite economy by fostering reasonable, competitive, and transparent pricing mechanisms while advocating the reduction of digital payment fees, particularly for small e-payments.

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