
The Philippines’ central bank is considering a new approach to digital payment fees. Instead of charging users for every single transaction, it is looking at introducing a flat subscription fee.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. revealed the plan recently. He spoke about the potential change at a Rotary Club meeting held in Makati City.
Governor Remolona explained that the current per-transaction model might be holding the system back. He noted that every new user makes the entire digital payments network more valuable for everyone, a benefit known as a “network externality.”
The proposed subscription model aims to encourage more use of digital payments. By removing small, repeated fees, the central bank hopes to maximize participation and growth across the network.
This initiative follows the BSP’s earlier goal of removing fees for person-to-person transfers. The bank also wants to eliminate fees on payments to small businesses. A specific transaction limit for these free transfers is still being discussed.
Remolona stated that relying on fees for each transaction is the “wrong model.” He believes a fixed subscription fee is a more fundamental and effective solution. The BSP is now in discussions with key industry players to design the new system.
This article, BSP wants to replace digital transaction fees with subscriptions, was originally published at NoypiGeeks | Philippines Technology News, Reviews and How to's.
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