BPI removes InstaPay, PESONet transfer fees

BANK of the Philippine Islands (BPI) is making interbank fund transfers permanently free starting next month as it will no longer charge fees for InstaPay and PESONet transactions.

Effective July 1, BPI customers making fund transfers to other banks and e-wallets through the BPI app, online banking platform, its e-wallet VYBE, BanKo, and BizKo and using the two clearing houses will not need to pay fees, it said in a statement on Monday.

Clients under BPI Preferred, BPI Gold, BPI Private Wealth, and verified VYBE users’ transfer fees were already waived as part of their existing benefits.

This latest move is mainly expected to benefit more than 9.5 million enrolled BPI app users, active or inactive, by making digital transactions affordable and accessible.

Previously, BPI charged a P10 fee for InstaPay transactions and P50 for PESONet transfers done on its online banking channels.

“As we mark our 175^th year, BPI remains committed to removing barriers to financial access and making banking more inclusive for all Filipinos. 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,” BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco said.

“We expect this to drive more frequent use of digital transfers as customers no longer have to factor in per-transaction costs. It simplifies everyday payments and makes the BPI app an even more practical tool for managing finances.”

BPI said removing interbank transfer fees is in line with its goal to drive digital adoption and enhance accessibility to financial services.

“By lowering transaction costs, the bank aims to encourage greater use of digital platforms for payments, remittances, and fund transfers.”

It added that this is also aligned with the Bangko Sentral ng Pilipinas’ (BSP) latest directive that mandates financial institutions to adopt reasonable, fair, market-based pricing for person-to-person electronic fund transfers.

BSP Circular No. 1238 Series of 2026 signed by BSP Governor Eli M. Remolona, Jr. on June 17 amends rules on pricing mechanisms for digital transactions, requiring banks to justify these fees with cost analyses.

It said fees for person-to-person e-payments across banks, e-wallet operators, and other payment service providers should not be materially different from fees within the same institution, and that any difference in pricing should mainly reflect fees paid to the network switch operator.

The BSP wants digital payments to make up 60%-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.

In 2024, online payments made up 57.4% of the volume and 59% of the value of the country’s total monthly retail transactions, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023. — Bettina V. Roc