THE central bank is now more partial to a subscription fee instead of per transaction fees when sending funds via digital platforms, even prodding the two biggest digital payment operator to adopt a new system.
In a Rotary Club of Manila forum last Thursday, Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr. said charging fees on a per transaction basis when undertaking online fund transfers “is the wrong model.”
The fundamental issue, Remolona said, is the concern about network externalities which happens in payment systems when adding more participants. Remolona said the central bank intend to minimize these externalities by relying less on fees per transactions and shifting to fixed costs like subscriptions.
In the draft circular, the central bank said it will eliminate fees on electronic fund transfers for personal transactions, provided these electronic fund transfers do not exceed 10 times per week.
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