GCash's P10 transfer fee is not going anywhere soon, according to the company’s executives. Amid ongoing discussions with the Bangko Sentral ng Pilipinas (BSP), GCash parent company Mynt has not committed to further fee reductions.
During a media briefing following their recent stock market debut, Jep Tang, Mynt's head of capital markets, explained that the BSP’s regulations do not mandate free transfers. Instead, they promote a pricing structure based on actual service costs.
We have a good working relationship with the regulators, and this discussion is still ongoing as to what level it should be moving forward.
Jep Tang, Mynt Executive
The current fee structure has raised concerns about GCash's competitiveness against banks that offer free transfers. However, Tang highlighted that the majority of GCash's revenue comes from other services, with bank transfer fees contributing minimally.
- GCash's top five payment services account for 78% of its payment solutions revenue.
- Express Send allows free internal transfers between GCash accounts.
The ongoing discussions with the BSP have not provided a clear timeline for potential changes. BSP Deputy Governor Mamerto Tangonan confirmed that negotiations are active but did not disclose when a resolution might be reached.
Historically, transfer fees have been a contentious issue in the Philippines' evolving digital payments landscape. The BSP's Circular No. 1238 aims to lower fees across the board but has left room for interpretation by service providers.
While GCash has reduced its transfer fees from P15 to P10, rival service Maya appears more inclined to maintain its P10 fee, citing the necessity of this revenue stream for its operations.