BSP Asks Banks to Remove Fees on Small Digital Transactions

The Bangko Sentral ng Pilipinas (BSP) has said that by eliminating transaction fees, can possibly speed up efforts to promote inclusive digital finance for less privileged Filipinos.

During a speech, BSP Governor Felipe M. Medalla mentioned that a transaction fee of ₱15 can still be high, specifically for marginalized communities.

Governor Medalla has mentioned that the government and the banking community can “find a cost-sharing system”  that would eliminate smaller payments from transaction fees.

“And one way to make it more inclusive, and I’m sure we can work together to achieve it, is if small transactions… will be free of charge so that the poor can also use digital payments. Because if the transaction is small and the fee is P15—it’s quite large relative to the transaction,” mentioned Governor Medalla.

According to Medalla, this is worth looking into with transactions around three times or below each day.

“There is a way of sharing costs. I promise you, the central bank, will be in a greater hurry to cut reserve requirements so you can afford to give those [concessions],” added Governor Medalla.

Governor Medalla says that digitalization efforts are already on track, noting that PESONet and InstaPay are “great successes” with more people using QR codes to complete payments.

Recently, the BSP launched project Paeng-QR PH Plus in Lapu-Lapu City to permit market vendors to have digital payment options for their patrons.

“We have done great work there (digitalization). The share of digital transactions in total payments has been growing steadily,”  says Governor Medalla.

Source: Business Mirror