Philippine central bank revises payments framework to protect consumers

Banks and e-wallets must justify charges under the updated rules.

The Bangko Sentral ng Pilipinas (BSP) has amended its electronic payments framework to promote lower and more transparent digital transaction fees across banks, e-wallets, and other payment service providers in the Philippines.

Under a circular issued on 17 June, interbank fees for person-to-person electronic payments should not be materially different from fees charged for transfers within the same financial 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 Corporation for PESONet.

The circular also requires BSP-supervised financial institutions to maintain an analysis of the costs of delivering electronic payment products and services. The central bank said it may require these analyses as part of its oversight activities.

BSP Governor Eli M. Remolona, Jr. said lower fees could encourage more consumers and businesses to use digital payments.

"The BSP sees this as a step toward making digital transactions even more mainstream," Remolona said. "At the same time, greater adoption can help improve efficiency across the payments system, reducing costs for everyone."

The amendments follow findings from the BSP's Consumer Expectations Survey for the fourth quarter of 2025, which found that one in three Filipino consumers viewed high fees as a leading barrier to using digital payments more frequently.

The circular amends both the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities.

It also expands the transaction points where digital payments can be made.

In addition, micro businesses, including sari-sari stores, will be allowed to open an account using the National ID or another official document, a move the BSP said could help more small businesses accept digital payments and access other financial services.