BDO joins banks waiving digital transfer fees for InstaPay, PESONet

Insider Spotlight

• BDO has made InstaPay and PESONet transfers free through BDO Online and BDO Pay.
• The move aligns the country’s largest lender with other major banks eliminating online fund transfer fees.
• The industry-wide shift follows the Bangko Sentral ng Pilipinas’ push to lower the cost of digital payments.

The Sy family-controlled Banco de Oro Unibank Inc. (BDO), the country’s largest bank, has waived fees for InstaPay and PESONet transfers made through its BDO Online and BDO Pay platforms, joining a growing number of Philippine banks removing charges for digital fund transfers.

In an advisory posted on its website, BDO said, “Send Money via InstaPay and PESONet is now free on BDO Online and BDO Pay.”

The announcement means customers can transfer funds to other banks through the two electronic payment networks without paying transaction fees when using the lender’s digital channels.

The big picture

BDO’s decision comes as the country’s largest banks respond to the Bangko Sentral ng Pilipinas’ initiative to make digital payments more affordable and encourage wider adoption of cashless transactions.

The BSP recently issued new pricing guidelines for person-to-person electronic fund transfers, prompting several lenders to either eliminate or reduce transfer fees. Governor Eli Remolona Jr. earlier said more banks were expected to waive or lower charges as part of the central bank’s efforts to promote financial inclusion and increase digital payment usage.

Bank of the Philippine Islands became one of the first major commercial banks to permanently waive InstaPay and PESONet fees beginning July 1, while Land Bank of the Philippines also announced free online fund transfers through its digital banking channels starting July 7.

Why it matters

The removal of transfer fees is expected to benefit millions of retail banking customers who regularly send money to accounts at other banks.

Previously, consumers typically paid between P10 and P50 per transaction depending on the bank and payment channel used. Waiving these charges could encourage more Filipinos to shift from cash transactions to digital payments while lowering the cost of everyday banking.

The move also intensifies competition among banks’ digital platforms as lenders seek to attract and retain customers by offering more value-added services at no additional cost.

With BDO joining the growing list of banks offering free InstaPay and PESONet transfers, customers now have broader access to zero-fee electronic fund transfers, supporting the BSP’s long-term goal of building a more inclusive and efficient digital payments ecosystem.

— Edited by Daxim L. Lucas