InstaPay, PESONet transfers reach P13.18 trillion as of May

By Katherine K. Chan, Reporter

CASHLESS TRANSACTIONS continued to increase in the first five months of the year, with transfers made via InstaPay and PESONet reaching over P13 trillion, Bangko Sentral ng Pilipinas (BSP) data showed.

The combined value of InstaPay and PESONet transactions surged by 44.43% to P13.181 trillion in January to May from P9.126 trillion in the same period last year.

Meanwhile, both clearing houses logged a combined volume of 3.483 billion in the period, nearly triple (188.76%) the 1.206 billion seen a year ago.

Broken down, the value of transactions made via InstaPay soared by 61.5% to P6.559 trillion in the first five months from P4.061 trillion last year.

This came as transaction volume surged 195.84% to 3.43 billion from 1.16 billion previously.

On the other hand, PESONet recorded transfers worth P6.622 trillion during the five-month period, up 30.75% from P5.065 trillion in the prior year.

The volume of transactions via the payment gateway also climbed by 12.63% year on year to 52.545 million from 46.652 million.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the latest InstaPay and PESONet data show that digital payments have become mainstream for Filipino consumers.

“Filipinos are no longer just experimenting; they’re integrating PESONet and InstaPay into daily economic life, from payroll to retail to small business transactions,” he said in a Viber message.

“It’s a structural shift toward convenience, speed, and financial inclusion.”

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 as an electronic alternative to paper-based checks.

Last week, the central bank issued directives aimed at lowering the cost of digital transactions, with financial institutions told to adopt “reasonable” fees for retail fund transfers.

This was followed by a central bank memorandum lifting the freeze on increasing InstaPay and PESONet transfer fees after four years.

It said it has also rolled out zero fees for small merchant payments.

For Mr. Ravelas, the BSP’s move to end the moratorium on fee increases may create short-term friction for consumers, but its rules on the pricing mechanism for small transfers should ultimately help boost traffic for both automated clearing houses in the long term.

“Now, on fees — lifting the freeze could cause a bit of short-term friction, especially for smaller, frequent transfers. But the behavioral shift is already entrenched. Usage may soften at the margins, but it won’t reverse,” he said.

“The key for banks and regulators is to keep fees reasonable — because affordability is what will sustain momentum and deepen adoption over the long run.”

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

In 2024, online payments made up 57.4% of the volume and 59% of the value of the country’s total monthly retail transactions, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023.

Earlier this month, the Securities and Exchange Commission (SEC) 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.