Philippine banks’ and e-wallets’ decision to waive or lower their interbank InstaPay and PESONet transfer fees has already boosted transaction volumes by up to 50 percent, a senior Bangko Sentral ng Pilipinas (BSP) official revealed.

BSP Deputy Governor Mamerto E. Tangonan said in a One News interview on Tuesday, July 14, that lenders have already reported to the central bank that transaction volumes have risen from the usual growth of 10 percent to as much as 50 percent.

Tangonan, who heads the BSP’s payments and currency management sector (PCMS), explained that fee elimination or reduction is a strategic move to reach the holy grail of financial inclusion by attracting those previously excluded from the formal financial system.

“I think that’s the holy grail—to bring those who are still outside the formal financial system into it,” he said.

According to Tangonan, the latest policy is already attracting first-time online users. He shared that one large bank reported new customers whose answer to previous account ownership was “none,” implying that Filipinos who previously had no digital footprint are now opening accounts through online transactions.

Elevated fund transfer fees have long been a barrier that has slowed public adoption of digital banking and digital payment methods. Tangonan noted that “high transfer fees have persistently been among the top three or four reasons why people keep away from opening an account or using digital payments.”

To accelerate wider adoption, the BSP focused its initial efforts on the top 10 volume contributors, which represent nearly 90 percent of the total retail payments transaction volume.

Tangonan made it clear that the BSP’s recent dialogue with summoned lenders aimed to achieve fee parity rather than impose a total mandate for zero fees.

“We’re just saying that the difference between the fees you charge for interbank transfers should be close to, or not materially higher than, the fees you charge your customers to transfer within the same bank or e-wallet,” Tangonan said.

Looking ahead, Tangonan believes this shift will prompt an evolution in banks’ business models, suggesting that the market’s focus could shift from merely facilitating fund transfers to offering Filipinos “better” deposit products, credit products, insurance, or investments that promise higher revenues.

Despite a recent plateau in digital payment growth, the BSP remains committed to its 2028 target, under which 70 percent of total payments will be made through digital channels. “We will continue to plow along until we reach that goal.”

Last Monday, July 13, Tangonan said the numbers imply the Philippines is on track to achieving the goal, reporting that digital payments now account for nearly three-fifths of all retail transactions in the country, up from a mere one percent a decade ago. “That transformation happened because we built the rails: InstaPay, PESONet, QR Ph,” he noted.

The latest BSP data showed digital payment transactions coursed through PESONet and InstaPay surged to ₱13.18 trillion in the first five months of 2026, with transaction volumes nearly tripling as Filipinos increasingly relied on digital channels for daily transactions.

Combined transactions through PESONet and InstaPay jumped by ₱4.05 trillion, or 44.4 percent, to ₱13.18 trillion as of end-May from ₱9.13 trillion in the same period last year.