The Bangko Sentral ng Pilipinas (BSP) is considering a subscription fee model for digital transactions as part of efforts to enhance the country’s payment system and promote financial inclusion.
Speaking at a Rotary Club event in Makati City, BSP Governor Eli Remolona Jr. outlined the central bank’s intention to shift from the current transaction-based fee structure to a fixed subscription model.
He explained that while adding participants to the payment system incurs a cost, it ultimately increases the network’s value through network externalities, where the worth of a service grows as more users join.
“A subscription fee, which is fixed rather than a fee per transaction, can help maximize these externalities,” Remolona said.
He emphasized that a shift toward subscriptions would reduce reliance on transaction fees and provide a more stable pricing structure for both consumers and merchants.
The BSP has also been pushing for the removal of transaction fees on person-to-person (P2P) electronic fund transfers and payments to small businesses to encourage wider adoption of digital payments.
Remolona noted that for transactions between individuals, the central bank is considering making fees zero up to a certain threshold, although a specific limit has not been decided.
While transaction fees have been a common model in digital payments, Remolona stressed that focusing solely on these fees is not the optimal approach. “It’s not about the fees per transaction. I think that’s the wrong model,” he said.
The BSP is currently in discussions with key digital payment providers, including GCash and Maya, to explore the feasibility of a subscription-based payment system. Remolona said that the central bank would work with industry stakeholders to develop an effective solution.
