The Central Bank of the Philippines has issued Circular No. 1238 to push banks, e-wallet operators and other payment service providers toward fairer pricing for digital transactions and broader acceptance of digital payments. For person-to-person electronic payments across institutions, fees should not be materially different from same-institution transfers, which are often free, and any difference should mainly reflect charges paid to the network switch operator. BSP-supervised financial institutions must also maintain an analysis showing how they compute the costs of electronic payment products and services and be ready to provide it during supervisory reviews. The changes respond to the central bank's fourth-quarter 2025 Consumer Expectations Survey, which found that one in three Filipino consumers sees high fees as a leading barrier to more frequent use of digital payments. The circular amends both the National Retail Payment System Framework and the Regulatory Framework for Merchant Payment Acceptance Activities. It also broadens potential transaction points by allowing micro businesses, including small informal merchants such as sari-sari stores, to open an account using the National ID or another official document. The measure applies to micro merchants whose monthly aggregate gross receipts do not exceed PHP 250,000 and is intended to help them accept digital payments and access other financial services.
Central Bank of the Philippines2026-06-28
Central Bank of the Philippines tightens digital payment fee rules and eases account opening for micro merchants
The Central Bank of the Philippines has tightened rules on digital payment fees by requiring person-to-person charges across institutions to stay broadly aligned with same-institution fees, with differences mainly reflecting switch operator costs. It also requires supervised institutions to document their cost calculations for electronic payment services. Separately, micro merchants with monthly gross receipts of up to PHP 250,000 can use the National ID or other official documents to open accounts and accept digital payments.