FinTech Alliance PH has welcomed the Bangko Sentral ng Pilipinas’ (BSP) clarification on Circular No. 1238, saying the guidance removes uncertainty over how electronic fund transfer fees should be implemented while giving the industry room to continue investing in digital payments.
The clarification comes after discussions between the BSP’s Monetary Board and representatives of FinTech Alliance PH over the interpretation of the circular, particularly provisions related to pricing electronic fund transfers.
According to the Alliance, the BSP has clarified that Circular No. 1238 is intended as a cost-based fair pricing framework, not a directive requiring banks and payment providers to eliminate transfer fees altogether.
The central bank also clarified that compliance with the circular does not mean off-us person-to-person (P2P) electronic fund transfer fees should be limited only to switch costs. Likewise, it said FAQ No. 7 accompanying the circular should not be interpreted as prescribing a fixed pricing formula based solely on those costs.
“We are grateful to the Bangko Sentral ng Pilipinas for this important clarification,” said Lito Villanueva, founding chairman of FinTech Alliance PH.
He said the guidance provides greater certainty for the industry by confirming that affordability should remain an important objective without compromising the sustainability of digital financial services.
“Affordability remains central to scaling financial inclusion, but it must go hand in hand with safe, reliable, and sustainable digital financial services,” Villanueva said.
BSP clarification supports fair, sustainable digital payment pricing
The Alliance said the clarification strikes a balance between consumer protection and the need for continued investment in payment infrastructure.
It noted that maintaining secure, reliable, and interoperable digital payment systems requires ongoing spending on technology, cybersecurity, compliance, and customer support. Sustainable pricing, it added, allows financial institutions and payment providers to continue making those investments while expanding digital financial services.
The group said the BSP’s position also gives banks, digital banks, electronic money issuers, fintech companies, and payment service providers greater regulatory certainty as they develop new products and improve existing payment services.
For consumers, the clarification means the focus remains on ensuring that electronic fund transfer fees are fair and reflective of the costs of providing the service, rather than imposing a one-size-fits-all pricing approach.
FinTech Alliance PH also reaffirmed its commitment to working with the BSP and other industry stakeholders to accelerate digital payments adoption and broaden access to digital financial services across the country.
The organization represents more than 170 corporate members, including banks, digital banks, electronic money issuers, payment service providers, fintech firms, technology providers, and strategic partners. Collectively, its members account for about 95% of the country’s retail digital financial transaction volume.
The clarification comes as the Philippines continues to push for wider adoption of digital payments, with regulators and industry players seeking to expand financial inclusion while ensuring the long-term resilience of the country’s digital payments ecosystem.
