State-run Land Bank of the Philippines (LANDBANK) has eliminated transaction fees for retail online fund transfers via InstaPay and PESONet effective July 7. The state-owned lender announced that the zero-fee policy applies to transactions executed through its online retail channels, including the LANDBANK Mobile Banking App and iAccess.
According to a company statement, the waiver is also extended to Overseas Filipino Bank (OFBank) accounts globally. The digital policy update builds on a prior initiative implemented on June 1, which waived fees for eligible person-to-government transactions utilizing QRPh.
Banking Sector Response to Central Bank Circular
LANDBANK’s policy adjustments conform to Bangko Sentral ng Pilipinas (BSP) Circular No. 1238, which lifted a five-year moratorium on electronic fund transfer pricing to allow market-based transaction structures.
The transition to a zero-fee framework by the government financial institution follows a sequence of fee cuts across the domestic banking sector. The Bank of the Philippine Islands (BPI) permanently waived its InstaPay and PESONet fees on July 1. Rizal Commercial Banking Corp. (RCBC) altered its fee structure on July 4, providing 30 free monthly InstaPay transfers via RCBC Pulz and uncapped free transfers through RCBC DiskarTech, while Union Bank of the Philippines (UnionBank) eliminated retail InstaPay fees on July 7.
Targeting Small Businesses, Workers and Overseas Filipinos
LANDBANK Chairman and Finance Secretary Frederick D. Go stated that the removal of transaction costs serves to reduce everyday expenses for consumers and optimize capital reinvestment for businesses. LANDBANK President and CEO Lynette V. Ortiz noted that expanding the zero-fee structure from government payments to standard retail transfers targets small businesses, workers, and overseas Filipino depositors.
The central bank’s regulatory guidelines mandate that commercial institutions align digital transaction charges with exact switch processing costs. The government noted that the combined actions of state and private lenders support executive directives to expand digital financial inclusion across the country.
This article is published on BitPinas: LANDBANK Waives InstaPay, PESONet Transfer Fees Starting July 7
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