The central bank is monitoring the effects of a recent fee waiver for digital person-to-government payments, considering whether to mandate lower transaction costs across the industry.
Deputy Governor Mamerto E. Tangonan said the bank will evaluate market reactions to the waiver before deciding on regulation. “We will observe the market development because of the LANDBANK waiver. We will see if that is big enough to cause a movement,” he explained.
Land Bank of the Philippines temporarily eliminated fees for certain person-to-government transactions conducted through QR Ph, the national quick-response code standard. The waiver began on June 1 and will remain in effect until year‑end.
The fee exemption applies only to payments directed to participating national government agencies, government‑owned and controlled corporations, local government units, water districts, and state universities and colleges.
Because most government agencies rely on Land Bank for these transactions, the move is expected to influence the broader market. The bank has not yet determined that a regulatory change is necessary.
The 2024 Status of Digital Payments report recorded approximately 900,000 online person-to-government transactions out of a total 3.7 million that year. This represents 24.6% of all person-to-other-payee transactions, highlighting a growing opportunity for digitalization.
