THE Bangko Sentral ng Pilipinas (BSP) expects more banks to waive digital fund transfer fees after Rizal Commercial Banking Corp. (RCBC) joined Bank of the Philippine Islands (BPI) in lowering transaction costs for consumers.
“In about two days, we expect more banks to follow,” BSP Governor Eli Remolona Jr. told reporters on Friday.
He likened the developments to having more telephone numbers to call as having only one is “not good.”
“You have to have a lot that you can call. The same goes for the payment system,” he added.
“That is what you call ‘network externalities.’ The more involved, the better.”
RCBC on Friday said it was waiving InstaPay fees for person-to-person fund transfers through Pulz and DiskarTech digital banking platforms beginning July 4, a move analysts said was aimed at keeping the bank competitive.
The bank said Pulz users would enjoy free InstaPay transfers of at least P100 for up to 30 transactions each month. A P10 fee will apply to transfers below the minimum amount or once the monthly limit is reached.
Meanwhile, all P2P InstaPay transfers made through RCBC DiskarTech will remain free, with no minimum transaction amount or monthly transaction limit.
RCBC President and CEO Reggie Cariaso said the initiative reflected the bank’s commitment to making digital banking more accessible and affordable while supporting the country’s shift toward cashless transactions.
Jarrod Tin, equity research analyst at DragonFi Securities, said the move appeared to be a tactical response to BPI’s move to waive InstaPay and PESONet transfer fees beginning July 1.
“While RCBC isn’t setting the trend, the move is strategically sound — it keeps the bank competitive among traditional peers at a time when frictionless digital transfers are increasingly table stakes,” he said.
Tin added that eliminating transfer fees could encourage customers to keep more money in their RCBC savings accounts, potentially boosting the bank’s current and savings account deposits.
Although RCBC may lose some fee-based income, Tin said the increase in deposits could help fund loan growth, expand its securities portfolio and support broader balance sheet initiatives, making the trade-off favorable over the long term.
Investment and Capital Corp. of the Philippines President and Chief Operating Officer Manny Ocampo also said that RCBC’s move was in response to BPI.
“I believe other banks will also feel the pressure from their clients on removing fees for online transfers and payments,” he said.
BPI earlier this week said it would no longer charge fees for InstaPay and PESONet transactions effective July 1 to make online banking more affordable and encourage greater use of electronic payments.
BPI President Jose Teodoro Limcaoco told The Manila Times that the move would be “good for financial inclusion and to promote cashless transactions.”
Transfers to other banks and e-wallets made through the BPI mobile app, online banking platform, VYBE, BanKo and BizKo will no longer incur charges, which is expected to benefit more than 9.5 million enrolled users.
Customers using the BPI app previously paid P10 per InstaPay transaction and P50 for every PESONet transfer. Verified VYBE users have already been enjoying free transfers to other banks and e-wallets.
The zero-fee policy covers transfers made through InstaPay, which enables real-time fund transfers, and PESONet, the country’s batch electronic fund transfer system.