BPI getting the Php5 — GCash

Last August, GCash announced that there will be a Php5USD 0.09INR 7EUR 0.08CNY 0.62 convenience fee 27 for cash-in transactions via Bank of the Philippine Islands (BPI). The charge took effect yesterday, October 2, 2023 for BPI.

Today, a GCash representative reached out again to us and explained that the Php5USD 0.09INR 7EUR 0.08CNY 0.62 charge is enforced by BPI, not GCash.

It seems that, for the longest time, GCash has been subsidizing all the transaction fees imposed by BPI for all cash-in by GCash customers. Apparently, BPI wanted to increase the transaction fees and GCash could no longer or is unwilling to subsidize the increase. Thus, the Php5USD 0.09INR 7EUR 0.08CNY 0.62 in cash-in charge.

It is possible that the actual transaction charge is much higher or comparable to other inter-bank transactions (like ATM withdrawals) that range from Php10USD 0.17INR 14EUR 0.16CNY 1 to Php25USD 0.43INR 36EUR 0.41CNY 3. GCash’s strategy to subsidize these charges for the longest time could be their way of gaining more subscribers and increasing transactions thru their platform, making them the preferred option.