The decision by financial technology firms and major commercial banks to lower or eliminate interbank online transfer fees is expected to accelerate the country’s shift toward low-cost digital payments as competition intensifies and regulators push to reduce transaction costs.
Jonathan Ravelas, senior adviser at Reyes Tacondong & Co., welcomed the latest fee cuts, saying they reflect stronger competition in the digital payments sector.
Commenting on e-wallet giant GCash’s move to cut its InstaPay transaction fee to P10 from P15 effective July 4, Ravelas said the lower charges would make digital financial services more affordable.
“As competition among banks, e-wallets, and fintech players intensifies, consumers stand to benefit from more affordable and accessible financial services,” Ravelas said.
The industry-wide shift gathered pace as PLDT Inc.’s digital bank Maya prepared to match GCash’s P10 InstaPay fee effective July 6, while Bank of the Philippine Islands and Rizal Commercial Banking Corp. eliminated InstaPay transfer fees in line with the Bangko Sentral ng Pilipinas’ push to remove transaction cost barriers.
Ravelas credited GCash with helping expand financial inclusion, saying the lower transfer fees would particularly benefit small businesses, freelancers and families that rely heavily on digital transactions.
“While the savings per transaction may seem modest, they add up over time and encourage greater adoption of digital payments. Ultimately, lower costs, wider access, and stronger competition are positive developments for both consumers and the broader economy,” Ravelas said.
