BSP: cap on online payment facilities to stay

This aligns with the BSP's ongoing efforts to encourage digital financial transactions.

The Bangko Sentral ng Pilipinas (BSP) or the Philippines’ central bank has decided to uphold the moratorium on InstaPay and PESONet fees, as per Monetary Board Resolution No. 1599 dated 7 December 2023.

Following BSP Memorandum No. M-2021-071 issued on 28 December 2021, financial institutions participating in the InstaPay and PESONet automated clearing houses are prohibited from increasing their current fund transfer fees. This aligns with the BSP's ongoing efforts to encourage digital financial transactions.

BSP Governor Eli M. Remolona, Jr. emphasised the central bank's encouragement for Filipinos to actively use their accounts for digital payments, savings, and investments while collaborating with the industry to expand access to the formal financial system.

Financial institutions planning to introduce fees for new fund transfer services must seek prior approval from the BSP. 

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These fees should be reported to the BSP 60 days before implementation. Additionally, any waived transfer fee may only be reinstated up to the amount reported to the BSP before the waiver.

The Philippine Payments Management, Inc., responsible for overseeing PESONet and InstaPay, is tasked with monitoring its members' regulatory compliance and promptly reporting any issues to the BSP for necessary action. 

Non-compliant members may face supervisory and enforcement actions under the National Payment Systems Act and the New Central Bank Act.

The moratorium on InstaPay and PESONet fees will be lifted, subject to BSP review, when the payments industry implements zero fees for small e-payment transactions.