Go hopeful more banks will scrap transfer fees

MANILA, Philippines – Finance Secretary Frederick Go expressed optimism that more banks will waive fees for interbank fund transfers after two major private lenders already took the lead in permanently scrapping the charges.

“I am hopeful that almost all digital transactions will soon be free of charge,” Go said in a statement on Saturday.

READ: RCBC to waive InstaPay fees starting July 4

“[It’s] a milestone that will make digital payments cheaper, faster, and more convenient for every Filipino,” he added.

Go’s remarks came after the Bank of the Philippine Islands (BPI) and Rizal Commercial Banking Corp. (RCBC) announced they would permanently waive fees for certain interbank fund transfers starting July 1 and July 4, respectively.

BPI said customers using its mobile app, online banking platform, VYBE, BanKo and BizKo will no longer pay fees for transfers to other banks and e-wallets via InstaPay and PESONet.

For its part, RCBC will waive InstaPay transfer fees for the first 30 InstaPay transactions each month, subject to a minimum transfer amount of P100 per transaction.

Go welcomed the BPI and RCBC’s decisions, saying they support the government’s efforts to make digital services more affordable and inclusive.

”It is heartwarming to see one of the country’s major banks supporting our shared goal of building a more inclusive digital economy where every Filipino can benefit from greater access to financial services,” he said.

“We are encouraged that two major private banks have now followed suit, demonstrating how decisive government action can catalyze broader reforms that deliver tangible benefits to consumers,” he added. 

The central bank expects more banks to announce similar fee waivers within the next two days.

GCash and Maya separately announced they had cut their InstaPay transfer fee to P10 from P15, effective Saturday

The announcements followed new BSP rules requiring banks to align electronic payment fees with actual service costs.

Fee parity push

Under the new rule, person-to-person transfer across banks should differ only by switching costs from those charged for transfers within the same bank.

READ: BSP clears way for digital transaction fee hikes; Go wants charges lowered to P2-P5

The fee cuts align with Go’s advocacy. He earlier told reporters he had been “obsessing” over digital transaction costs, which ranges from P10 to P50.

He said banks should charge only the switching cost, or about P2.

“Digital payment should be fast, secure, convenient and affordable. We’ve been talking to them (the BSP) about this. We want to level the playing field,” Go said.

“I believe the BSP has the same sentiment on how to bring down transaction costs,” he added.

Go said other financial institutions would likely follow once the biggest banks lower or eliminate their fees.

The Land Bank of the Philippines, which Go chairs, has cut its InstaPay fee transfers to P8 from P15. ISeparately, the state lender is piloting fee waivers for eligible person-to-government payments through QRPh-enabled channels. /pai INQ