FinTech Alliance PH said the Bangko Sentral ng Pilipinas (BSP) has clarified that Circular No. 1238 does not require banks and payment providers to remove electronic fund transfer fees, giving the digital finance industry clearer guidance on how transfer charges should be set.
The industry group said the clarification came after discussions between BSP Monetary Board members and FinTech Alliance PH. According to the BSP, Circular No. 1238 is a cost-based fair pricing guideline rather than a zero-fee mandate.
The clarification means banks, digital banks, electronic money issuers, fintech companies, and payment service providers may continue charging electronic fund transfer fees as long as these are based on reasonable costs. It also states that off-us person-to-person (P2P) transfer fees are not limited to switch costs alone, and that FAQ No. 7 should not be interpreted as requiring a strict switch-cost-only pricing formula.
“Compliance does not require zero fees, nor does it limit off-us P2P electronic fund transfer fees to switch cost alone, and FAQ No. 7 should not be read as a rigid, switch-cost-only formula,” said Lito Villanueva, founding chair, FinTech Alliance PH. “Affordability remains central to scaling financial inclusion, but it must go hand in hand with safe, reliable, and sustainable digital financial services.”
The clarification provides more certainty for financial institutions that have been investing in digital payment systems, cybersecurity, and customer services while supporting the BSP’s goal of making digital payments more affordable and accessible.
FinTech Alliance PH said the BSP’s clarification creates a balanced approach that protects consumers while allowing the industry to continue investing in payment infrastructure, cybersecurity, innovation, and better customer experience.
The Alliance added that keeping digital payments affordable should also allow providers to operate sustainably so they can continue expanding secure, interoperable, and reliable financial services.
The group also reaffirmed its commitment to working with the BSP and other industry stakeholders to accelerate digital payments adoption and expand access to safe and inclusive financial services across the Philippines.