Bank of the Philippine Islands (BPI) announced on June 29 that it will eliminate fees for InstaPay and PESONet interbank transfers starting July 1. The policy change follows the Bangko Sentral ng Pilipinas (BSP) lifting its nearly five-year moratorium on digital transfer fee changes through Circular No. 1238. BPI previously charged P10 for InstaPay transactions and P50 for PESONet transfers, with the new zero-fee policy expected to benefit more than 9.5 million enrolled users of the BPI app.
BPI Eliminates InstaPay and PESONet Transfer Fees Starting July 1
BPI fund transfers to other banks and e-wallets through InstaPay and PESONet will be permanently free on the BPI app, BPI online banking, VYBE, BanKo, and BizKo starting July 1. The bank confirmed there is no daily limit to the number of free InstaPay transfers. BPI president and chief executive officer TG Limcaoco stated in a press release on June 29: "Making interbank transfers free is a meaningful step toward enabling our customers to move their money more freely, while strengthening adoption of secure and convenient digital banking. We expect this to drive more frequent use of digital transfers as customers no longer have to factor in per-transaction costs."
BSP Circular No. 1238 Lifts Fee Moratorium
The BSP lifted its nearly five-year moratorium on changes in InstaPay and PESONet fees through Circular No. 1238. The circular pushes banks and e-wallet operators to adopt "reasonable and fair, market-based pricing" for electronic fund transfers. The BSP stated in a press release on Sunday, June 28, that fees for transfers across banks, e-wallets, and other payment providers should not be materially different from fees within the same institution, except mainly to reflect the switch or network cost paid to process the transaction. The circular does not require all InstaPay and PESONet transfers to be free.
Landbank Previously Cut InstaPay Fees to P8
Land Bank of the Philippines cut its InstaPay transfer fee for individuals from P15 to P8 prior to BPI's announcement. Landbank also provides customers one free InstaPay transfer per day for transactions worth P1,000 and below. Finance Secretary Frederick Go has pushed for digital transfer fees to fall to as low as P2 to P5. Go stated, as reported by Inquirer.net: "You just need one of the big players to drop. Then people have to compete."
In 2024, Limcaoco — then also head of the Bankers Association of the Philippines — said BPI's own study showed that each interbank transfer cost the lender about P22. Digital transfer charges cover the network switch fee, clearing and settlement, cybersecurity, fraud monitoring, customer support, compliance, and the institution's own technology infrastructure.
FAQ
What fees did BPI eliminate starting July 1?
BPI eliminated fees for InstaPay and PESONet interbank transfers starting July 1. Previously, BPI charged P10 for InstaPay transactions and P50 for PESONet transfers.
What did BSP Circular No. 1238 require banks to do?
BSP Circular No. 1238 lifted the nearly five-year moratorium on InstaPay and PESONet fee changes and pushed banks and e-wallet operators to adopt "reasonable and fair, market-based pricing" for electronic fund transfers. The circular does not require all transfers to be free but states that fees across institutions should not be materially different from fees within the same institution, except to reflect network switch costs.
How many BPI users will benefit from the zero-fee policy?
BPI stated the zero-fee policy is expected to benefit more than 9.5 million enrolled users of the BPI app.
