Department of Finance (DOF) Secretary and Land Bank of the Philippines (Landbank) Chairman Frederick D. Go has praised the move by Ayala-led Bank of the Philippine Islands (BPI) to waive electronic fund transfer fees across its digital channels, describing it as a step toward eliminating banking friction and improving access to financial services.

“We welcome BPI’s efforts to make digital transactions free,” Go said in a statement on Monday, June 29. Go, who earlier raised concerns over the country’s high digital transaction costs, said he has long advocated for affordable transaction fees.

Reducing these costs is a key agenda under the DOF chief’s leadership, citing the stark gap between local fees and those in neighboring Asian countries.

“It is heartwarming to see one of the country’s major banks supporting our shared goal of building a more inclusive digital economy where every Filipino can benefit from greater access to financial services,” Go said.

At BPI alone, more than nine million enrolled digital customers stand to benefit from the decision. The permanent waiver will apply to both real-time InstaPay transfers and PESONet batch electronic fund transfer services.

Beginning Wednesday, July 1, BPI will waive digital transaction charges across its main electronic service channels, including BPI mobile app, BPI Online web platform, VYBE e-wallet, and BizKo platform for small businesses.

For its part, state-run Landbank is currently running a pilot offering zero convenience fees for person-to-government (P2G) transactions involving agencies such as the Philippine National Police (PNP) and the Department of Foreign Affairs (DFA).

While Landbank first rolled out a trial of zero fund transfer fees, BPI is the first to make the permanent removal of transaction costs official. The move could trigger a chain reaction across the banking industry, as other institutions may be pressured to lower their fees as well.

“You only need one of the major players to lower its fees, and competition will follow. Once that happens, convenience fees will come down,” Go said earlier.

BPI President and Chief Executive Officer (CEO) Jose Teodoro K. Limcaoco said making interbank transfers free will improve fund mobility and encourage wider adoption of digital banking.

“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,” Limcaoco said.