If you’ve been doing bank transactions through the official website or app, you’ve probably come across PESONet and InstaPay as your options when transferring money to other banks. They may be similar, but they are also different.
They are similar because they both allow you inter-bank fund transfers, are Automated Clearing Houses (ACH) created under the National Retail Payment System or NRPS of the Bangko Sentral ng Pilipinas (BSP), and are available through official banking websites and apps of most local banks in the Philippines. In fact, some banks also allow over-the-counter transfers through these channels as well.
But, despite their similarities, these two options aren’t identical.
PESONet
The country’s first ACH, PESONet started operating in 2017. As a batch electronic fund transfer (EFT) credit payment system designed for recurring bulk transactions, it was originally meant as an alternative to issuing checks.
Because it was made to support a large number of transactions, processing happens in batches. Your transaction can be finished on the same day if made before the cut-off time (which can vary according to bank). That makes PESONet better for transactions that aren’t time-sensitive.
There is nominally no maximum amount per transaction and per account, but these can be set by the source bank. Fees also depend on the bank.
InstaPay
Launched in 2018, InstaPay is a real-time EFT credit push payment system meant for small-value transactions, like shopping, paying toll fees and buying things online. As the prefix ‘Insta’ suggests, transfers are processed in real time, so the amount you’re sending should be credited to the receiving bank account right away.
As InstaPay was intended for more personal use, it has a daily transfer limit of P50,000 per transaction. Like PESONet, the fees are determined by the sending/ originating bank.
Which should you use?
If you’re making a simple and small transaction or if time is important, InstaPay will probably be enough to satisfy your needs. On the other hand, if you’re transferring a large amount of money or if you want to do a lot of transactions, PESONet will serve your needs better.
Just remember that there may be fees involved, so always check your bank’s interbank fund transfer policy so you can choose the right one for you and for the time-sensitivity of your transaction.
