InstaPay, PESONet transfers surpass P16T

By Katherine K. Chan, Reporter

THE COMBINED VALUE of InstaPay and PESONet transactions topped P16 trillion in the first half, reflecting the continued shift of Filipinos toward digital payments, central bank data showed.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the combined value of InstaPay and PESONet transactions jumped by 44.61% to P16.09 trillion as of June from P11.126 trillion recorded in the first half of 2025.

The volume of transactions processed through the two payment gateways also surged by 166.5% year on year to 4.203 billion in the first half from 1.577 billion a year earlier.

InstaPay saw its transaction volume increase by nearly triple at 172.18% to 4.139 billion at end-June from 1.521 billion last year.

This brought the value of InstaPay transactions to P7.977 trillion in the first half, jumping by 60.26% from P4.978 trillion a year earlier.

On the other hand, the volume of PESONet transfers grew by 13.84% annually with 64.065 million as of June from 56.277 million in the same year-ago period.

Transfers that went through PESONet stood at a total value of P8.113 trillion at end-June, jumping by 31.94% from last year’s P6.149 trillion.

InstaPay and PESONet are automated clearing houses under the central bank’s National Retail Payment System framework.

InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Meanwhile, PESONet is mainly used for high-value transactions and may be considered an electronic alternative to paper-based checks.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort noted that the sustained double-digit growth in InstaPay and PESONet transfers even before the industry’s move to zero fees is a “good sign” for the digital economy.

For Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., the sustained growth shows the increasing adoption of digital payment channels.

“The continued surge in InstaPay and PESONet transactions reflects the rapid digitalization of the Philippine economy,” he said via Viber, “Consumers and businesses are increasingly embracing cashless payments because they are faster, more convenient, and now more affordable as banks and e-wallet providers reduce (or) eliminate transfer fees.”

RCBC’s Mr. Ricafort expects InstaPay and PESONet transfers to surge further in the coming months as local financial institutions race to cut or scrap their digital fund transfer fees following the BSP’s recent order.

“Definitely, lower or zero transfer costs would lead to significantly higher growth and use of online banking transactions and e-wallets that are already integrated in the country’s online payments and electronic fund transfer ecosystem,” he said in a Viber message.

However, Mr. Ravelas noted that the value of InstaPay and PESONet transactions is unlikely to double in the months ahead despite cheaper transfer costs.

“While lower fees will help sustain strong growth, I think a doubling of transaction values in the next few months may be too ambitious given the already large base,” he said.

“What is more likely is continued robust double-digit expansion driven by higher smartphone penetration, growth in e-commerce, wider use of digital payroll and business payments, increasing financial inclusion and literacy, and ongoing BSP initiatives to promote a cash-lite economy,” Mr. Ravelas added.

BSP Deputy Governor Mamerto E. Tangonan said earlier this week that banks saw digital transaction volumes surge by as much as 50% as the transfer fee waivers encouraged more online transactions and attracted new online banking users.

BSP Circular No. 1238, which took effect on July 4, directed financial institutions like banks, e-wallets, and other payment service providers to adopt reasonable, fair, and market-based pricing for retail digital fund transfers.

The central bank said its decision to mandate lower costs for digital fund transfers was part of its broader efforts to enhance the country’s payments system and digital economy.

It wants digital payments to make up 60%-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.

Under the new rules, fees charged for person-to-person transactions between different institutions should not materially differ from charges for transfers within the same entity, with the switch cost being the only allowable pricing difference from its intrabank transfer fees.

Switch cost refers to the fee charged by a clearing switch operator to process interbank transactions, which the BSP said is typically around P1.50.

As of July 15, 11 universal and commercial banks, including most of the country’s largest banks, are offering free person-to-person InstaPay and PESONet transfers.

Meanwhile, several digital banks and electronic money issuers lowered their transfer fees, with charges ranging between P5 and P25 for InstaPay and PESONet.

Last month, the Securities and Exchange Commission approved the merger of BancNet, Inc. and Philippine Clearing House Corp. (PCHC), with the former as the surviving company.

The merged entity, which unifies the country’s biggest payments and clearing switch operators, is now operating under the corporate name Payments Network of the Philippines, Inc.

BancNet operates InstaPay, while PCHC handles PESONet along with the Philippine Domestic Dollar Transfer System and Payment-versus-Payment.

In 2024, digital payments made up 57.4% of the country’s total monthly retail transaction volume (from 52.8% in 2023) and 59% of the combined value (from 55.3% in 2023), according to BSP’s latest Status of Digital Payments in the Philippines report.