In a bid to promote financial inclusion and encourage the usage of e-wallets among low-income and unbanked individuals in the Philippines, a new bill has been put forward. The proposed legislation, called the Electronic Wallet and Electronic Fund Transfer Small Value Transaction Fee Waiver Act, aims to enhance the accessibility of digital banking by waiving fees for small value transactions made through e-wallets.
According to the bill, e-wallet providers and electronic fund transfer service providers would be required to exempt fees for transactions below P1,000. This includes sending money to another e-wallet user, cashing in or out of an e-wallet account, and transferring funds to a bank account. However, if the cumulative total of small value transactions exceeds P2,000 per day, fees may be imposed on subsequent transactions.
The proposed legislation also mandates transparency in fee disclosure and encourages competition among e-wallet providers. This is expected to benefit consumers through a wider range of choices and lower fees.
The bill empowers the Bangko Sentral ng Pilipinas (BSP) to adjust the threshold for small value transactions and the daily cumulative limit, taking into account factors like the daily cost of living, exchange rates, and inflation rate. Additionally, the BSP would be responsible for promoting the advantages of using e-wallets and educating low-income individuals on their usage.
This initiative aligns with the ongoing efforts of the BSP to endorse cashless payments and financial inclusion in the Philippines. They have been urging major banks to waive fund transfer fees for small online transactions below P1,000 in order to encourage wider adoption of digital payments. By making e-wallets more affordable and accessible, the country aims to empower individuals, enhance financial literacy, and stimulate economic growth.
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The source of the article is from the blog reporterosdelsur.com.mx