THE Bangko Sentral ng Pilipinas (BSP) is exploring a fixed subscription fee model for digital transactions as an alternative to the current per-transaction fee structure, according to BSP Governor Eli Remolona Jr.
Amid discussions with banks and financial institutions on reducing or eliminating fees for electronic fund transfers, Remolona stated that the current fee-per-transaction model is fundamentally “the wrong model.”
The central bank is actively consulting with key stakeholders, including e-wallet operators and financial institutions, to finalize a structure that benefits consumers while remaining viable for providers.
“We’re talking to GCash, we’re talking to Maya and all the participants. We’re going to agree on something,” Remolona said.
The proposed subscription fee model could mark a significant shift in how digital transactions are priced in the Philippines, potentially boosting the adoption of cashless payments while ensuring a fair and sustainable system for all stakeholders.
Latest data from the central bank showed that the value of electronic fund transfers coursed through the PESONet and InstaPay jumped by 35 percent to P15.62 trillion as of end-November 2024 from P11.56 trillion in the same period a year ago.
Combined volume of transactions done via InstaPay and PESONet surged by 62 percent to 1.34 billion from 824.86 million a year prior.
The central bank wants online payments to make up 60 to 70 percent of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan.
metrosundaily
