Beginning July 1, millions of Filipinos will be able to transfer funds to other banks for free as the Bank of the Philippine Islands (BPI) removes all InstaPay and PESONet transfer fees across its digital banking platforms. The move, expected to benefit about 9.5 million users, supports the country’s push for greater financial inclusion and follows the Bangko Sentral ng Pilipinas’ directive encouraging lower electronic payment costs.
MANILA, Philippines – Millions of Filipinos will soon enjoy free interbank fund transfers as the Bank of the Philippine Islands (BPI) announced that it will waive all transfer fees for transactions made through InstaPay and PESONet beginning July 1, marking one of the most significant consumer-friendly moves in the country’s digital banking sector.
The new policy covers fund transfers conducted through the BPI mobile app, BPI Online, VYBE, BanKo, and BizKo, allowing customers to send money to accounts in other banks without paying the usual transaction charges. The initiative is expected to benefit approximately 9.5 million BPI app users and is aimed at making digital financial services more accessible and affordable for Filipinos.
According to BPI, customers only need to update their mobile applications to the latest versions to begin enjoying unlimited fee-free transfers. The bank believes the removal of transaction costs will encourage greater adoption of digital payment channels and simplify everyday financial transactions for individuals and businesses alike.
BPI President and Chief Executive Officer TG Limcaoco said eliminating transfer fees removes one of the biggest barriers to digital banking and encourages customers to maximize electronic payment platforms for their daily financial needs.
“We expect this to drive more frequent use of digital transfers as customers no longer have to factor in per-transaction costs. It simplifies everyday payments,” Limcaoco said.
The move represents a significant shift in the Philippine banking landscape, where transfer fees have long been viewed as a recurring expense for consumers who regularly move funds between different financial institutions. By removing these charges, BPI hopes to further accelerate the country’s transition toward a cash-lite economy while improving convenience for millions of account holders.
The announcement also comes shortly after the Bangko Sentral ng Pilipinas (BSP) directed banks and payment service providers to reassess their electronic payment fees. Under the central bank’s latest circular, charges for person-to-person electronic payments across banks, e-wallets, and other payment service providers should no longer be materially different from fees imposed on transfers within the same financial institution.
The BSP emphasized that banks and payment providers must now conduct comprehensive cost analyses of their electronic payment services to ensure that transaction fees remain reasonable, transparent, and reflective of actual operating costs. The directive forms part of the regulator’s broader efforts to promote competition, enhance financial inclusion, and encourage wider use of digital payment systems throughout the country.
Finance Secretary Frederick Go welcomed BPI’s decision, describing it as an important contribution toward expanding access to financial services and supporting the government’s digital transformation agenda.
“It is heartwarming to see one of the country’s major banks supporting our shared goal of building a more inclusive digital economy where every Filipino can benefit from greater access to financial services,” Go said in a statement.
Industry observers say BPI’s decision could increase competitive pressure on other major banks to adopt similar fee-free transfer policies as consumers increasingly prioritize low-cost digital banking services. The development may also help accelerate the adoption of cashless transactions, particularly among individuals and small businesses that rely heavily on interbank transfers for everyday payments.
As digital banking continues to reshape the Philippine financial landscape, the removal of interbank transfer fees is expected to make electronic payments more practical for millions of Filipinos, reinforcing efforts by both the government and the banking industry to create a more inclusive, efficient, and affordable financial ecosystem.