The recent moves by local financial institutions to waive or reduce online transaction fees will benefit both consumers and banks, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto E. Tangonan said.

Speaking at a press briefing at the central bank's Manila headquarters on Monday, Tangonan said lower or waived InstaPay and PESONet fees should attract more users, with the resulting increase in digital payment transactions helping reduce banks' operating costs.

“As more people join the network, it becomes more useful because users can pay more merchants and transfer money to more users. This attracts even more users,” he said.

“At the same time, the larger number of transactions helps reduce the average cost of running the system, making it easier for providers to keep fees low.”

Most of the country's largest financial institutions, including BDO Unibank, Union Bank of the Philippines, Land Bank of the Philippines and Bank of the Philippine Islands, have waived their online transaction fees following recent BSP circulars promoting more equitable pricing for digital payments.

Tangonan welcomed the move, noting that the country's 10 largest banks account for about 90 percent of total online transaction volume. He added that the BSP expects more banks to follow suit, saying lower fees generate positive spillover effects across the financial system.

“So in this virtuous cycle, every new user creates financial and non-financial benefits for the payment provider and the other banks and e-wallet providers in the network. This is called the positive network externalities,” he said.

Tangonan added that interoperability, supported by lower transaction fees, would encourage broader financial inclusion. He also stressed the need to onboard small businesses, such as sari-sari stores and street food vendors, to ensure consumers have more opportunities to use digital payments.

Digital fund transfers through InstaPay and PESONet continued to grow in 2026, reaching P14.6 trillion in more than 4.19 billion transactions, according to the latest BSP data. Combined transfer values were up 44.5 percent year on year, putting 2026 on track to surpass last year's record P24.7 trillion.