BSP considering subscription fee on digital transactions

The Bangko Sentral ng Pilipinas is considering a fixed subscription fee model for digital transactions as an alternative to the current per-transaction fee structure, according to BSP Governor Eli Remolona Jr.

- KEISHA TA-ASAN

Amid discussions with banks and financial institutions on reducing or eliminating fees for electronic fund transfers, Remolona said the current fee-per-transaction model is fundamentally "the wrong model."

"Because of what we call network externalities, there should be a subscription fee, which is fixed rather than a fee per transaction. So we're still trying to figure out how exactly to do that," Remolona said.

The proposed model aims to address complaints from banks and concerns about fairness while encouraging more widespread use of digital payments.