FinTech Alliance PH has welcomed the Bangko Sentral ng Pilipinas’ (BSP) clarification on Circular No. 1238, describing it as a significant step toward providing regulatory certainty for the country’s rapidly growing digital financial services industry.
The BSP clarified that Circular No. 1238 should be interpreted as a cost-based fair pricing guideline rather than a zero-fee mandate. The clarification follows discussions between BSP Monetary Board members and FinTech Alliance PH regarding the implementation of electronic fund transfer pricing policies.
According to the BSP, compliance with the circular does not require banks, digital banks, electronic money issuers, fintech firms, or payment service providers to eliminate electronic fund transfer fees. The regulator also clarified that charges for off-us person-to-person (P2P) electronic fund transfers are not limited solely to switch costs and that FAQ No. 7 should not be interpreted as prescribing a rigid switch-cost-only pricing model.
FinTech Alliance PH Founding Chairman Lito Villanueva said the clarification reinforces a balanced approach that supports both affordability and the long-term sustainability of digital financial services.
The Alliance noted that the BSP’s guidance provides a regulatory framework that protects consumers while allowing industry players to continue investing in payment infrastructure, cybersecurity, digital innovation, and customer experience enhancements.
Industry stakeholders believe the clarification is particularly important as the Philippines accelerates its transition toward a digital-first economy. Sustainable pricing models, they argue, are essential for maintaining secure, interoperable, and reliable payment systems while expanding financial inclusion.
FinTech Alliance PH also reaffirmed its commitment to working closely with the BSP and other stakeholders to promote wider digital payments adoption, strengthen the country’s digital finance ecosystem, and expand access to safe and inclusive financial services for Filipinos.
The development comes as digital payments continue to gain momentum nationwide, with regulators and industry leaders balancing consumer affordability with the need to support ongoing investments in financial technology, cybersecurity, and payment system resilience.
