FinTech Alliance PH welcomed the Bangko Sentral ng Pilipinas’ (BSP) clarification on Circular No. 1238, saying it provides important regulatory certainty for the digital financial services industry while reinforcing the shared objective of advancing affordable, secure, and sustainable digital payments.
Following constructive dialogue between the BSP Monetary Board Members and FinTech Alliance PH, the BSP clarified that Circular No. 1238 is a cost-based fair pricing guideline, not a zero-fee mandate.
The clarification confirms that compliance with the Circular does not require financial institutions or payment service providers to eliminate electronic fund transfer fees, nor does it limit off-us person-to-person (P2P) electronic fund transfer charges solely to switch costs. It also makes clear that FAQ No. 7 should not be interpreted as prescribing a rigid switch-cost-only pricing formula.
“We are grateful to the Bangko Sentral ng Pilipinas for this important clarification. Following constructive dialogue between the BSP Monetary Board Members and the FinTech Alliance PH, it is now clear that Circular No. 1238 is a cost-based fair pricing guideline, not a zero-based mandate. Compliance does not require zero fees, nor does it limit off-us P2P electronic fund transfer fees to switch cost alone, and FAQ No. 7 should not be read as a rigid, switch-cost-only formula. Affordability remains central to scaling financial inclusion, but it must go hand in hand with safe, reliable, and sustainable digital financial services.”
— Lito Villanueva, Founding Chairman, FinTech Alliance PH
The Alliance said the BSP’s clarification provides a balanced regulatory framework that protects consumers while enabling banks, electronic money issuers, digital banks, fintech companies, and payment service providers to continue investing in resilient payment infrastructure, cybersecurity, innovation, and customer experience.
FinTech Alliance PH emphasized that affordability and financial inclusion are best achieved when supported by sustainable business models that encourage continued investment in secure, interoperable, and reliable digital financial services.
The Alliance likewise reaffirmed its commitment to working closely with the BSP and all industry stakeholders to accelerate digital payments adoption, strengthen the country’s digital financial ecosystem, and expand access to safe, inclusive, and sustainable financial services for every Filipino.
