The Bangko Sentral ng Pilipinas (BSP) is exploring a subscription-based fee model for digital payments, the Philippines News Agency reported.
BSP Governor Eli Remolona Jr. explained that each new participant in a payment system adds value to the network by increasing its overall reach and utility, a concept known as a network externality.
While adding participants incurs a small cost, it ultimately benefits the system as a whole.
To maximise this network effect, the BSP is considering a shift away from per-transaction fees in favor of subscription fees.
This approach, Remolona believes, could lead to greater financial inclusion.
The central bank is currently in discussions with major players in the digital payment sector, including GCash and Maya, to determine the best way to implement this new fee structure.
Remolona highlighted that individuals are often unaware of the transaction fees they indirectly pay, as these costs are typically embedded in the prices charged by merchants. The BSP aims to increase transparency in this regard.
The BSP is also looking into eliminating fees for person-to-person transactions below a certain threshold, although the specific amount has yet to be determined.
Featured image credit: Edited from Freepik
