BDO Unibank Inc. has eliminated transaction fees for its digital fund transfer channels, accelerating a margin-compressing race to zero among the country’s retail banks.

The Sy family-controlled financial giant began notifying users through its mobile application that charges for money transfers routed through electronic networks InstaPay and PESONet have been lowered to zero.

The decision removes a key structural friction point for retail depositors who previously faced fees ranging from ₱10 to ₱50 per transaction depending on the service and platform used.

BDO’s move follows the policy directive from the Bangko Sentral ng Pilipinas (BSP), which has ordered retail financial institutions to rationalize or remove interbank transaction costs.

Under recent central bank frameworks, policymakers mandated that retail person-to-person transfer fees must align closely with intra-bank network costs, aiming to lower the financial entry barriers for unbanked and underbanked citizens.

The decision by the country's dominant lender effectively codifies a broad industry shift. BDO enters a growing roster of major domestic lenders—including Bank of the Philippine Islands, Land Bank of the Philippines, Union Bank of the Philippines, Philippine National Bank, Metropolitan Bank & Trust Co., Philippine Savings Bank, and Security Bank Corp.—that have entirely dismantled their transfer pricing models over consecutive weeks.