The Land Bank of the Philippines (LANDBANK) has announced it will waive transaction fees for online fund transfers via InstaPay and PESONet beginning July 7. This initiative, applicable through the LANDBANK Mobile Banking App and iAccess, aims to ease financial burdens for users.
A Shift in Banking Practices
The zero-fee policy extends to accounts held with the Overseas Filipino Bank (OFBank) globally. This adjustment comes on the heels of a previous fee waiver for eligible person-to-government transactions initiated on June 1.
This move reduces everyday expenses for consumers and optimizes capital reinvestment for businesses.
Frederick D. Go, LANDBANK Chairman and Finance Secretary
LANDBANK's fee elimination aligns with Bangko Sentral ng Pilipinas (BSP) Circular No. 1238, which recently lifted a five-year moratorium on electronic fund transfer pricing. This regulatory change encourages banks to adopt more competitive fee structures.
Following the Industry Trend
The decision to scrap fees follows similar actions from other banks. For instance:
- The Bank of the Philippine Islands (BPI) waived its InstaPay and PESONet fees on July 1.
- Rizal Commercial Banking Corp. (RCBC) altered its fee structure on July 4, offering 30 free monthly InstaPay transfers via its app.
- Union Bank of the Philippines eliminated retail InstaPay fees on July 7.
This trend reflects a broader initiative among financial institutions to promote digital transactions and enhance financial inclusion within the Philippines.
Impact on the Community
LANDBANK President and CEO Lynette V. Ortiz emphasized that this expansion of the zero-fee framework not only benefits consumers but also supports small businesses and overseas Filipino workers. The government envisions that these combined efforts will facilitate greater access to financial services across the nation.