Other

BSP Fintech Regulation and Payment System Pricing Framework Sustainability

The Philippines' fintech ecosystem, led by Electronic Money Issuers like GCash and Maya, has dramatically expanded financial inclusion to millions of previously unbanked citizens, but faces critical challenges from BSP Circular No. 1238 on payment system pricing mechanisms. The article warns that regulatory compression of transaction-linked revenues without regard to structural cost differences between traditional banks and EMIs could result in weaker service quality, reduced innovation, market consolidation, and diminished financial inclusion despite consumer protection intentions.