BSP clarifies Circular No. 1238: Fair pricing, not zero fees

Bangko Sentral ng Pilipinas (BSP) clarified Circular No. 1238, saying it gives the digital finance industry clearer rules while supporting affordable and secure digital payments.

FinTech Alliance PH

Circular No. 1238 clarified

After talks with BSP officials, it was clarified that Circular 1238 is about fair, cost‑based pricing. It is not a rule for zero fees.

FinTech Alliance PH welcomed the clarification. 

Basically, this means banks, e‑money issuers, digital banks, and payment providers are not required to remove transfer fees, nor are they limited to charging only switch costs.

This ensures consumers are protected while allowing financial institutions to keep investing in stronger payment systems, cybersecurity, and innovation.

FinTech Alliance PH stressed that keeping services affordable and inclusive works best when supported by sustainable business models that encourage continued investment.

The group also reaffirmed its commitment to work with BSP and industry partners to grow digital payments, strengthen the financial ecosystem, and expand access to safe and reliable services for all Filipinos.

Lito Villanueva, Founding Chairman, FinTech Alliance PH, said,

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.

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