The central bank is scrutinizing the pilot program by state-run Land Bank of the Philippines to eliminate convenience fees on digital payments to government agencies, assessing whether market dynamics alone will compel private commercial lenders to follow suit.

The Bangko Sentral ng Pilipinas (BSP) is closely monitoring Landbank’s trial offering zero-fee person-to-government, or P2G, electronic transactions for public services, according to BSP Deputy Governor Mamerto E. Tangonan, who leads the central bank's Payments and Currency Management Sector.

The state lender is currently waiving charges for digital payments directed to key public institutions, including the Philippine National Police and the Department of Foreign Affairs.

Speaking at a media roundtable on Monday, July 20, Tangonan said regulators will track financial sector adjustments stemming from Landbank's initiative before determining whether formal regulations are required to mandate free P2G transfers across all private commercial banks.

“We will observe market developments following Landbank’s fee waiver,” Tangonan said. “We will assess whether it is big enough to drive any changes, and if necessary, we will review it later on.”

The zero-fee pilot comes in the wake of broader industry adjustments following waivers on person-to-person transfer fees across domestic online banking channels.

Tangonan noted that Landbank is uniquely positioned to drive industry shifts due to its role as the main servicing and depository bank for the entire government apparatus, including the monetary authority itself.

Because Landbank maintains direct integrations with nearly all state entities, its pricing framework exerts significant influence over public-sector payment ecosystems.

Government collections represent a major area targeted for digital expansion in the country. Central bank data showed total person-to-government transaction volume reached 3.7 million in 2024. Of that total, digital payments accounted for approximately 900,000 transactions, representing roughly 25 percent of all P2G activity.

Policymakers anticipate that removing fee frictions on public service transactions—such as passport processing or official documentation—could accelerate digital adoption nationwide.