FinTech Alliance Philippines (FinTech Alliance PH) welcomed the Bangko Sentral ng Pilipinas (BSP)’s clarification on Circular No. 1238, saying it provides greater regulatory certainty for digital financial service providers while reaffirming that the policy promotes fair pricing rather than mandating zero transaction fees.
The clarification follows discussions between BSP Monetary Board members and FinTech Alliance PH regarding the implementation of the circular governing electronic fund transfer pricing.
BSP says Circular No. 1238 is not a zero-fee mandate
According to FinTech Alliance PH, the BSP clarified that Circular No. 1238 serves as a cost-based fair pricing guideline instead of requiring financial institutions to eliminate electronic fund transfer charges.
The clarification also states that compliance with the circular does not require banks, digital banks, electronic money issuers, fintech firms, or payment service providers to remove fees for off-us person-to-person (P2P) electronic fund transfers.
In addition, the BSP said FAQ No. 7 should not be interpreted as limiting transfer fees solely to switch costs or prescribing a fixed pricing formula.
Industry welcomes regulatory certainty
FinTech Alliance Philippines said the clarification provides a balanced framework that protects consumers while allowing financial institutions to continue investing in digital payment infrastructure.
According to the alliance, sustainable pricing supports continued investments in payment infrastructure, cybersecurity, product innovation, customer experience, and reliable digital financial services. It added that affordable digital payments remain essential to expanding financial inclusion but should also support the long-term sustainability of the financial ecosystem.
Following the clarification, FinTech Alliance PH reaffirmed its commitment to working with Bangko Sentral ng Pilipinas and other industry stakeholders to accelerate digital payments adoption in the country.
The alliance said it will continue supporting initiatives that strengthen the Philippines’ digital financial ecosystem while expanding access to secure, interoperable, and sustainable financial services for more Filipinos.
