Fintechs cheer BSP ‘clarification’ that bank transfers need not be free

Insider Spotlight

• FinTech Alliance PH said the BSP clarified that Circular No. 1238 is a cost-based fair pricing guideline, not a zero-fee mandate
• The group said compliance does not require zero transaction fees or limit off-us person-to-person transfer charges to switch costs alone
• The clarification follows discussions between BSP Monetary Board members and FinTech Alliance PH, with the group emphasizing affordability alongside sustainable digital financial services

FinTech Alliance PH welcomed the Bangko Sentral ng Pilipinas’ clarification on Circular No. 1238, saying the central bank has confirmed that the regulation is intended to promote cost-based fair pricing rather than impose zero transaction fees on digital financial services.

In a statement sent to InsiderPH on Friday, July 31, 2026 by its founding chair Lito Villanueva, the industry group said the clarification followed what it described as constructive dialogue between BSP Monetary Board members and the FinTech Alliance PH.

It added that the guidance provides greater certainty for financial institutions and payment service providers implementing the circular.

The big picture

“We are grateful to the Bangko Sentral ng Pilipinas for this important clarification,” Villanueva said.

 “Following constructive dialogue between the BSP Monetary Board members and the FinTech Alliance PH, it is now clear that Circular No. 1238 is a cost-based fair pricing guideline, not a zero-based mandate. 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. Affordability remains central to scaling financial inclusion, but it must go hand in hand with safe, reliable, and sustainable digital financial services.”

The statement addresses concerns surrounding the implementation of the circular, particularly on the pricing of off-us person-to-person electronic fund transfers. According to the alliance, the BSP’s clarification confirms that institutions may continue to adopt pricing models based on actual costs, provided these remain fair and aligned with the objectives of the regulation.

Why it matters

The clarification is expected to provide greater regulatory certainty for digital financial service providers as they balance affordability with investments in technology, cybersecurity, and operational resilience.

FinTech Alliance PH said affordable digital payments remain essential to advancing financial inclusion in the Philippines. At the same time, it stressed that maintaining secure, reliable, and sustainable digital financial services is equally important to supporting continued growth in the country’s digital payments ecosystem. —Daxim L. Lucas| Ed: Corrie S. Narisma