What Electronic Fund Transfer Service Should You Use?

October 14, 2021

PESONet and InstaPay are the two major electronic funds transfer (EFT) providers in the Philippines for online bank-to-bank transfers. What are the distinctions between the two, and how should you pick between them?

Users probably experienced going to the bank, filling out a deposit slip and waiting in line for an hour just to deposit money to a friend or loved one’s bank account. You don’t have to go through all that trouble to transfer money to another bank account anymore, thankfully.

Transferring money from one bank to another is simple with EFT services like InstaPay and PESONet. To send money to a local bank account, all you need is an online banking account and a computer or mobile phone with an Internet connection.

Electronic fund transfer (EFT) services enable a bank to send money electronically or digitally to another bank, as long as both banks are members of the same EFT network. Consider an EFT service to be a direct line between two banks. The EFT service works as a “middleman,” handling and facilitating money transfers and movements between banks.

Users don’t need to go to the bank to deposit money into someone else’s account thanks to EFT services like PESONet and InstaPay. To complete the transaction, simply go into your online banking account, provide your recipient’s account information, and choose your preferred EFT service. InstaPay and PESONet are also used by mobile wallets like GCash and ALLCASH through over the counter to send and receive money to and from bank accounts.

While InstaPay and PESONet are both electronic fund transfer services that do essentially the same thing, they have a few key variances. The length of time it takes for the transfer to complete, as well as the daily transaction restrictions, varied amongst these EFT services. Transaction costs vary as well, however they are typically determined by the sending bank.

In this article, we’ll go over what InstaPay and PESONet are, how they differ from one another, and which one to use based on your tastes and expectations.


Customers can transfer money between accounts of InstaPay participating and BSP-supervised banks and e-money issuers (or e-wallets) in the Philippines via an electronic fund transfer (EFT) service called InstaPay.

Customers with savings, current, and e-money accounts at InstaPay member institutions can utilize the InstaPay EFT service to send and receive fund transfers. InstaPay is open 24 hours a day, seven days a week, including holidays and weekends.

InstaPay money transfers are handled in real time, and the funds are available to the recipient practically immediately. Customers can transfer up to $50,000 per transaction, with partner banks having the ability to set the maximum daily transfer limit per account. The sending bank determines the transaction cost, which is applied to the sender’s account.

Features of InstaPay

  • Fund Availability: Almost instantly Transaction Fee: Depends on the sending bank
  • Service is available 24 hours a day, 7 days a week, all year.
  • 50,000 per transaction is the maximum transaction limit.

Advantages of InstaPay

  • Transfers in real time
  • Money is received fairly instantly.
  • Ideal for transactions that must be completed quickly.
  • Even on weekends and holidays, we are available at any time.

Disadvantages of InstaPay

InstaPay Participating Banks and Transaction Fees can only send up to $50,000 per transaction.

As of August 12, 2021, these are the InstaPay participating banks and e-money issuers. As of June 30, 2021, transaction costs are correct. The list may be updated at any time without notice.


PESONet is an electronic fund transfer (EFT) and automated clearing house (ACH) service that allows you to move money from one account to another in BSP-regulated financial institutions (BSFIs). Philippine EFT System and Operations Network (PESONet) is an acronym for Philippine EFT System and Operations Network.

PESONet transactions are processed in bulk and cleared in batches over the course of the day, with various settlement and clearing cycles. If the transfer is made before the 3:00 PM cut-off time, the payee or recipient will get the entire amount on the same banking day. Fund transfers conducted after the cut-off time or on non-banking days (such as weekends and holidays) will be executed the following business day.

Customers can transfer an unlimited amount of money using PESONet, subject to the bank’s maximum limits. The sending bank or e-money issuer is also in charge of transaction fees.

Features of PESONet

  • Transaction Fee: This is determined by the sending bank.
  • Funds are available before 11:00 p.m. on the same banking day if the transaction is completed before 3:00 p.m.; the following banking day if the transaction is completed after 3:00 p.m. or on weekends and holidays.
  • Maximum Transaction Limit: None, but it may vary depending on the bank. Service Availability: 24/7, banking days only

Advantages of PESONet

  • Can send a limitless amount of money (depending on the bank)
  • It’s ideal for large-scale money transactions (e.g. salary payments)

Disadvantages of PESONet

  • Transfers are not instantaneous and may take up to a day or more to complete.
  • Not recommended for transactions that must be completed quickly.
  • Only available on business days.

Banks that participate in PESONet and Transaction Fees

As of August 12, 2021, these are the PESONet participating banks and e-money issuers. As of June 30, 2021, transaction costs are correct. The list may be updated at any time without notice.

Which one?

Even though the transaction takes longer, you should probably pick PESONet if you plan to transfer more substantial quantities of more than $50,000. You can make the transfer well ahead of the 3:00 p.m. deadline to ensure that the funds are available by 11:00 p.m. the same day.

Keep in mind that PESONet transfers are subject to transaction limits at some institutions. Metrobank, for example, has a daily maximum restriction of 200,000 for online banking transfers. You’ll need to check with your bank to see whether they have any transaction limits for PESONet fund transfers, and if they are per transaction, per account, or per day.

InstaPay, on the other hand, is your only alternative if you or your beneficiary require money right now, as transfers are processed and finalized nearly instantly. The monies are normally credited to your beneficiary’s account in less than a minute.

In a word, utilize InstaPay for modest and/or urgent transactions, and PESONet if you need to send a large sum of money but you (or your beneficiary) are not in a rush.


You can make an informed selection about which EFT service to employ for your next online fund transfer now that you understand the similarities and differences between PESONet and InstaPay. You’ll save money on transaction fees and avoid any problems that come with using the incorrect EFT service.