The Philippine digital payments continue to shape the financial landscape with groundbreaking innovations and new models of scalability. At the heart of these discussions lies the insights shared by Mr. Mamerto E. Tangonan, the BSP Deputy Governor for Payments and Currency Management. His talk last February 28, 2025 at the Fintech Alliance Forum spotlighted how emerging payment models can revolutionize the industry, making peer-to-peer (P2P) transactions free—or at least affordable—while paving the way for seamless cross-border exchanges. 

On initiative towards lowering the cost of P2P Transfers, last March 24, 2025, the Bangko Sentral ng Pilipinas (BSP) implemented changes to transaction fees, including the elimination of fees on electronic fund transfers for personal transactions within specific thresholds and for payments to micro-merchants. Such measures align with the central goal of financial inclusion, ensuring that even the most underserved communities can easily access the benefits of digital payments. A future where transfer fees are negligible—or entirely eliminated—is no longer an ambitious dream but a plausible reality, given the advancements in digital payment systems.

For years, the cost of P2P transfers has been a barrier for inclusivity in financial transactions. Mr. Tangonan emphasized the importance of leveraging technology to drive these costs down. By promoting interoperability among financial systems and harnessing innovations such as blockchain and open banking, financial institutions can create frictionless, low-cost transaction frameworks. 

The Future of Cross-Border Transactions

The global economy is increasingly interwoven, yet cross-border payments often remain complex, expensive, and delayed. Mr. Tangonan’s talk provided an inspiring look at new models designed to address these challenges. A focus on central bank digital currencies (CBDCs) as potential game-changers in cross-border transactions was notable. CBDCs offer faster, more secure, and transparent payment systems, cutting through layers of intermediaries and enhancing efficiency.

Additionally, the BSP has been exploring partnerships with other financial regulators across the globe. By aligning payment standards and fostering international collaboration, the future of cross-border payments is poised to be faster, smoother, and far more cost-effective.

A Vision for Scalable and Inclusive Digital Payments

Mr. Tangonan’s insights reflect a vision for digital payment ecosystems that prioritize scalability and inclusivity. The BSP’s work in modernizing payment infrastructures underscores their commitment to transforming the financial landscape in the Philippines and beyond. Emerging models such as real-time payment systems, blockchain, and digital wallets are driving us closer to a seamless and interconnected global financial ecosystem.

At the Fintech Alliance Forum, Mr. Tangonan invited leaders and innovators to collaborate, invest, and rethink the status quo. By exploring scalable payment systems and focusing on affordability and accessibility, the digital payments revolution stands to benefit millions—bridging divides and creating equal opportunities for all.

As digital payments continue to evolve, the insights shared by Mr. Tangonan serve as a critical blueprint for shaping their future. By addressing key challenges in P2P and cross-border transactions, this vision inspires optimism, urging stakeholders to build a financial ecosystem that is not only technologically advanced but deeply inclusive as well.