Summary
Digital payments in the Philippines continued to grow, with recent transfer fee waivers driving transaction volumes in InstaPay and PESONet to more than double as of July, according to Bangko Sentral ng Pilipinas (BSP) data. In the first seven months of the year, the combined value of InstaPay and PESONet transfers amounted to P19.162 trillion, up 44.82% from P13.231 trillion a year earlier. Transactions through both payment gateways more than doubled (155.16%) year on year to 4.976 billion.
The growth came as many financial institutions lowered or waived interbank retail fund transfer fees in compliance with BSP Circular 1238, issued June 17, which required them to adopt reasonable, fair and market-based pricing. The BSP wants digital payments to make up 60-70% of total retail payment volume by 2028. Its 2025 report showed online payments made up 64.7% of retail transaction volume last year, up from 57.5% in 2024 — the first time the BSP hit its target.
Key Facts
- Combined InstaPay + PESONet value: P19.162T in H1 2026, up 44.82% YoY
- Transactions more than doubled (155.16%) to 4.976 billion
- InstaPay value up 60.32% to P9.509T; volume up 160.08% to 4.9 billion
- PESONet value up 32.23% to P9.653T; volume up 15.36% to 76.4 million
- Fee waivers driven by BSP Circular 1238 (June 17) on fair, market-based pricing
- Interbank fees should not differ materially from intrabank; switch fee ~P1.50
- 95 InstaPay participants (mostly nonbank e-money issuers); 124 PESONet participants
- BSP target: digital payments 60-70% of retail volume by 2028
- 2025: online payments 64.7% of retail volume (up from 57.5% in 2024)
- Digital payments value share: 53.3% in 2025 (down from 59%)
Why It Matters
The surge in InstaPay and PESONet volumes shows how regulatory action on fees can accelerate digital payments adoption. BSP Circular 1238, by requiring fair and market-based pricing for interbank transfers, removed a key friction and drove transaction volumes to more than double. This is a significant milestone for the Philippines' digital economy and its National Retail Payment System, and it demonstrates the impact of policy on financial inclusion and the shift toward digital payments in emerging markets.