MORE BANKS have permanently waived their money transfer fees in line with the Bangko Sentral ng Pilipinas’ (BSP) to reduce digital costs for Filipinos.
Starting Tuesday (July 7), all money transfers between people through Land Bank of the Philippines (LANDBANK) and Union Bank of the Philippines (UnionBank) are free, the two banks announced separately.
LANDBANK has removed its InstaPay and PESONnet fees for retail customers using the LANDBANK Mobile Banking App (MBA) and iAccess, it said in a statement on Monday night. It previously offered limited free micro transfers on both payment gateways, with individual transactions exceeding daily limits and a flat fee of P15-P50 for PESONet and P8 for InstaPay.
The cancellation also extends to its digital bank Overseas Filipino Bank, Inc.
This follows its move to stop payments of qualified personal services to the government through the QRPh from June 1.
“Every peso saved in money transfer costs is a peso that Filipino families can spend on their daily needs and that businesses can reinvest in growth,” said LANDBANK Chairman and Finance Secretary Frederick D. Go.
“By expanding our zero-fee digital framework from government payments to everyday store transfers, we want to ensure that our banking services directly benefit our workers, small business owners, and Filipinos overseas. We focus on keeping our platforms secure, reliable, and accessible to everyone, helping our customers stay connected to their families and businesses without the burden of additional costs,” said Vnette Executive Officer and President of LANDzBANK.
UNIONBANK
On the other hand, UnionBank said that person-to-person transfers through InstaPay to UnionBank online will now be free. It previously charged P10 for this transaction.
This adds to its list of unpaid services such as PESONet transfers, intrabank purchases, credit payments, telco load purchases, and in-store payments through QRPh.
Its digital bank is UnionDigital Bank, Inc. already offers free transfers for InstaPay and PESONet, subject to an automatic daily transaction limit of P500,000 adjustable up to P10 million.
InstaPay and PESONet are automatic clearing houses under the framework of the National Retail Payment System.
InstaPay is a real-time electronic fund transfer facility for transactions up to P50,000 and is mainly used for retail transactions, while PESONet is mainly used for high-value transactions and may be considered an electronic alternative to paper-based checks as transfers are processed and settled in batches.
LANDBANK and UnionBank join other financial institutions that have eliminated or reduced their person-to-person payments to comply with the BSP’s directive aimed at reducing digital transaction costs.
BSP Circular 1238 issued on June 17, which went into effect on July 4, instructs financial institutions such as banks, e-wallets, and other payment service providers to obtain reasonable, fair, and market-based rates for person-to-person transfers.
The central bank said that the fees charged for person-to-person e-payments between different institutions should not be significantly different from the fees for transfers within the same business, and the difference in prices is only the switching costs, or the fees charged by the clearing switch operator to process these external transfers.
It added that institutions should ensure that their fee structures do not result in one group of users unfairly subsidizing the cost of serving another.
“Any differences in fees should be based on reasonable and directly calculated costs, such as switching or network-related costs, and should not result in consequences that discourage cooperation or create unnecessary barriers to institutional trade,” said another memo clarifying the circular.
Financial institutions are also expected to support their purchase prices with an analysis of the actual costs incurred to provide payment products and services. – Bettina V. Roc
