As big banks waive transfer fees, it's worth remembering that a healthy mix of financial companies, not a single free option, is what has kept costs down and services improving for ordinary Filipinos.
Not long ago, sending ₱500 to a relative in a remote barangay could cost you almost as much as the amount itself. A tricycle ride to the nearest bank branch ran ₱100 in far-flung areas. In the city, a taxi or a Grab ride just to make a bank transfer cost even more, plus the hours lost to travel and queuing. Then e-wallets and small digital finance companies came along, and that same errand cost ₱10, took thirty seconds, and needed nothing but a phone.
It's worth asking why that happened. It wasn't one company's generosity. It was competition. Banks, e-wallets, and remittance apps grew alongside each other, each one racing to make sending money easier and cheaper than the next. That race brought the cost down from ₱100 to ₱10 or ₱20, not any single institution's goodwill. The real lesson here: what protects consumers isn't one company's low price. It's how many real choices they have.
Earlier this year, the BSP issued a circular pushing electronic payment fees to be reasonable, transparent, and based on actual cost. That's a sound standard, and BSP deserves credit for it. It never required fees to drop to zero. It simply asked that fees reflect what it actually costs to move money safely.
A number of large banks then chose to go further and waive transfer fees entirely. That's their right, and good for their customers in the moment. But it had a side effect worth noticing. It quietly reset what the public now expects “reasonable” to mean, for every provider, everywhere. Electronic money issuers, the companies behind many of our e-wallets and remittance apps, are now being asked why they “still charge” for something the biggest banks give away free.
That comparison misses something important. A bank, at its core, is in the business of keeping your money. It takes deposits, lends that money out, and earns enough from interest to give some services away for free. An EMI is in the business of moving your money, not keeping it. By law, it can't lend out the funds passing through it. It has no deposit interest quietly paying its bills. Every transfer it processes comes out of its own pocket.
Think of a jeepney and a private car sharing the same road. Ask both to charge passengers the same fare, and only one survives. That's the risk here too. If every provider has to match the price only the biggest, most diversified players can afford, the smaller ones don't get better. They just stop competing, or close. A free transaction today can mean fewer companies competing for your business tomorrow, and fewer competitors usually means less pressure on anyone to keep improving.
This is why a healthy mix of banks, EMIs, and other players matters to ordinary Filipinos, not as an industry talking point, but as the actual mechanism that got us cheaper, better service in the first place. Protecting that mix isn't about protecting any one company. It's about protecting the range of options that got us here, and that keeps every provider working to earn your business rather than assume it.
It's also why BSP's own approach, careful, consultative, grounded in real data, is the right one. Industry has been engaging with it constructively and openly. Getting this right takes time, and that's exactly as it should be.
One more thing is worth adding gently, while that process is still underway. If the recent zero-fee move by a few major banks were ever held up, in a moment as big as the State of the Nation Address, as a national win to extend across the whole industry, it risks sending the wrong signal to a public that doesn't yet fully understand how differently these companies are built, or how much that difference has already worked in their favor. It would suggest, all at once, that only one kind of provider should remain. That's not a reason to hold back a real milestone worth celebrating. It's only a reason to let the conversation already underway between BSP and industry run a little further first.
The next time “zero fee” sounds like a win, ask a quieter second question: what happens to your choices next year, if only the biggest players can afford to offer it? Real value for Filipino consumers was never about one free transaction. It's always been about how many companies are still in the race to serve you. By Ann J. Cuisia
No comments:
Post a Comment