Consumers who use InstaPay for transferring money to others should expect to be paying fees again soon as banks have come to an agreement to charge online transfer users, as per the leader of a banking industry group.
Cezar Consing, president and CEO of BPI and head of Bankers Association of the Philippines, claims that the decision will take effect by October 1 this year.
A program under the National Retail Payment System (NRPS) of the Bangko Sentral ng Pilipinas (BSP), InstaPay has been a preferred method of transferring money by consumers, which allows for a transfer of up to Php50,000 per transaction, for its real-time effect.
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Meanwhile, for money transactions that does not impose any amount limit, PESONet makes for the ideal choice, partly also due to its 24-hour accreditation.
The BSP is urging banks to waive the fees, highlighting the need to promote digital transactions in light of the ongoing pandemic. But Consing argues that, even with the fees in place, people would still favor conducting digital transactions.
Prior to the lockdown, BPI’s market share of the digital transactions is at 78%. It subsequently rose to 95% during the mandatory enhanced community quarantine. Post-ECQ, the market share dropped to 92%.
It’s important to note that not all banks will stop waiving fees by October, as others are reportedly keeping it free until the end of 2020.
Banks with online fund transfer fees waived until September 30, 2020:
- China Bank
- Bank of Commerce
- Robinson’s Bank
- PS Bank
- China Bank Savings
Banks with fees waived until December 31, 2020:
- United Coconut Planters Bank
- Asia United Bank
- Development Bank of the Philippines
- EastWest Banking Corporation
- Security Bank
- Union Bank
- Land Bank of the Philippines
- Sterling Bank
- Standard Chartered Bank
Banks with fees waived until further notice:
- Philippine National Bank
- CTBC Bank
- Bank of China