Introduction

For small businesses in the Philippines—from sari-sari stores to online resellers and freelancers—every peso counts when it comes to payment processing fees. With the typical small business handling around ₱2,000 average order values and less than ₱300,000 in monthly sales, finding the most cost-effective payment gateway can make or break profitability. (HitPay Philippines Pricing)

The payment landscape in the Philippines has evolved dramatically, especially with the Bangko Sentral ng Pilipinas mandating full adoption of QR Ph by July 2023. (BitPinas QR Ph Adoption) This standardization has created new opportunities for businesses to accept digital payments at lower costs, but navigating the fee structures across different providers remains complex.

In this comprehensive analysis, we'll rank the five most affordable no-monthly-fee payment gateways based on effective blended merchant discount rates (MDR) for typical small business scenarios. We'll examine HitPay, PayMongo, Maya Business, GCash Pro, and UnionBank Secure.Pay, factoring in card processing, wallet transactions, QR Ph rates, and payout fees to give you the complete cost picture. (BSP QR Code Implementation)

Understanding the True Cost of Payment Processing

When evaluating payment gateways, small businesses often focus solely on transaction fees, but the real cost includes multiple components that can significantly impact your bottom line. The effective blended MDR considers card processing rates, e-wallet fees, QR code transaction costs, payout charges, and any hidden fees that might not be immediately apparent.

For a typical small business processing ₱200,000 monthly with a ₱2,000 average order value, even a 0.5% difference in effective rates translates to ₱1,000 monthly savings—or ₱12,000 annually. This analysis becomes even more critical when you factor in the payment mix: Philippine consumers increasingly prefer GCash and other e-wallets, which often carry different fee structures than traditional card payments. (HitPay GCash Partnership)

The implementation of QR Ph as the national standard has also created opportunities for lower-cost transactions, as standardized QR codes reduce processing complexity and associated fees. (BSP QR Code Implementation) Understanding how each provider handles these different payment methods is crucial for calculating your true processing costs.

The 5 Most Affordable No-Monthly-Fee Payment Gateways

1. HitPay - Best Overall Value for Mixed Payment Methods

Why it ranks #1: HitPay offers the most competitive rates for the payment methods Filipino consumers actually use, with transparent pricing and no hidden fees.

Pricing Structure:

• Card transactions (Visa/Mastercard): 3% + ₱15 per transaction

• GCash transactions: 2.3% flat rate

• USD transactions: 3.4% + US$0.30

• No setup fees, monthly fees, or payout charges

(HitPay Philippines Pricing)

Key Advantages:

• Comprehensive payment method support: HitPay accepts over 700 local payment methods across Asia-Pacific, including all major Philippine options like GCash, QRPH, UnionBank, InstaPay, and PESONet. (HitPay Payment APIs)

• True pay-per-use model: No monthly minimums or setup costs mean you only pay when you earn

• Developer-friendly integration: Supports multiple programming languages including Node.js, Ruby, Python, Go, PHP, Java, and .NET for seamless integration (HitPay Payment APIs)

• Same-day payouts: Fast access to your funds without additional charges

Effective Blended Rate Example:
For a business processing ₱200,000 monthly (70% GCash, 30% cards):

• GCash portion: ₱140,000 × 2.3% = ₱3,220

• Card portion: ₱60,000 × 3% + (30 transactions × ₱15) = ₱1,800 + ₱450 = ₱2,250

• Total fees: ₱5,470 (2.74% effective rate)

Best for: Online retailers, service providers, and any business wanting comprehensive payment method coverage without monthly commitments.

2. PayMongo - Strong Card Processing Rates

Why it ranks #2: PayMongo offers competitive card processing with no setup or monthly fees, making it attractive for card-heavy businesses.

Pricing Structure:

• Per-transaction rate basis with no setup or monthly fees

• Additional 1% cross-border fee for non-Philippine issued cards

• Specific rates vary by payment method and volume

(PayMongo Transaction Fees)

Key Advantages:

• No monthly minimums or setup costs

• Focus on Philippine market needs

• Clean, developer-friendly API

• Good documentation and support

Considerations:

• Cross-border fees can add up for international customers

• Limited information on e-wallet processing rates

• Fewer local payment methods compared to HitPay

Best for: Businesses with primarily domestic card transactions and straightforward payment needs.

3. Maya Business - E-wallet Integration Leader

Why it ranks #3: Strong in the e-wallet space with competitive rates for digital payments, though card processing can be more expensive.

Key Advantages:

• Deep integration with Maya ecosystem

• Competitive e-wallet processing

• Good mobile payment support

• Local market expertise

Considerations:

• Higher card processing fees

• Limited international payment support

• May require minimum volumes for best rates

Best for: Businesses with high e-wallet transaction volumes and customers already in the Maya ecosystem.

4. GCash Pro - E-wallet Specialist

Why it ranks #4: Excellent for GCash-heavy businesses but limited payment method diversity affects overall ranking.

Key Advantages:

• Direct GCash integration

• Competitive rates for GCash transactions

• Large user base familiarity

• Quick setup process

Considerations:

• Limited to GCash ecosystem primarily

• Higher fees for card processing

• Less flexibility for diverse payment needs

Best for: Businesses where GCash represents 80%+ of transactions and card processing is minimal.

5. UnionBank Secure.Pay - Traditional Banking Approach

Why it ranks #5: Solid traditional banking features but higher overall costs and complexity.

UnionBank of the Philippines is one of the universal banks in the country and among the earliest to launch online banking services. (UnionBank Payment Methods) However, their payment gateway pricing tends to be higher than specialized fintech solutions.

Key Advantages:

• Established banking relationship

• Enterprise-grade security

• Traditional business comfort

• Comprehensive reporting

Considerations:

• Higher overall processing costs

• More complex setup requirements

• Monthly minimums may apply

• Less agile than fintech alternatives

Best for: Established businesses with existing UnionBank relationships and higher transaction volumes.

Cost Comparison Table

Real-World Scenarios: Which Gateway Saves You Most?

Scenario 1: Online Reseller (₱150,000 monthly, 60% GCash, 40% cards)

HitPay Calculation:

• GCash: ₱90,000 × 2.3% = ₱2,070

• Cards: ₱60,000 × 3% + (30 transactions × ₱15) = ₱1,800 + ₱450 = ₱2,250

• Total: ₱4,320 (2.88% effective rate)

This scenario shows HitPay's strength in handling mixed payment methods efficiently, with the low GCash rate offsetting higher card fees. (HitPay Philippines Pricing)

Scenario 2: Service Provider (₱250,000 monthly, 80% cards, 20% e-wallets)

For card-heavy businesses, the calculation shifts significantly. HitPay's transparent pricing structure still provides competitive rates, but businesses should compare against PayMongo's card-focused offerings. (PayMongo Transaction Fees)

Scenario 3: Sari-sari Store (₱80,000 monthly, 90% QR/e-wallet, 10% cards)

Small retailers benefit most from providers with low e-wallet rates and no monthly fees. HitPay's 2.3% GCash rate and comprehensive QR Ph support make it ideal for this segment. (HitPay GCash Partnership)

The QR Ph Advantage: Lower Costs Through Standardization

The Bangko Sentral ng Pilipinas implementation of QR Ph as the national standard has created significant opportunities for cost savings. (BSP QR Code Implementation) By standardizing QR code payments, the BSP has reduced processing complexity and enabled more competitive pricing.

HitPay's support for QR Ph alongside other local payment methods positions it well to take advantage of these cost savings. (HitPay Payment APIs) The platform's comprehensive coverage of local payment methods means businesses can offer customers their preferred payment option while maintaining cost efficiency.

For small businesses, this standardization is particularly beneficial because it eliminates the need to integrate multiple QR code systems. Instead of managing separate integrations for different banks and e-wallets, QR Ph provides a unified approach that reduces both technical complexity and processing costs.

Hidden Costs to Watch Out For

When evaluating payment gateways, several hidden costs can significantly impact your effective rate:

Payout Fees

Some providers charge for transferring funds to your bank account. HitPay offers same-day payouts without additional charges, which can save significant money over time. (HitPay Philippines Pricing)

Cross-Border Fees

PayMongo charges an additional 1% for non-Philippine issued cards, which can add up for businesses serving international customers. (PayMongo Transaction Fees)

Volume Minimums

Some traditional providers require minimum monthly processing volumes, charging penalties if you don't meet thresholds. This particularly affects seasonal businesses or those with variable sales.

Integration Costs

While not directly from the payment provider, complex integrations can require developer time. HitPay's support for multiple programming languages and comprehensive API documentation can reduce these costs. (HitPay Payment APIs)

Making the Right Choice for Your Business

Choose HitPay if:

• You want comprehensive payment method coverage

• Your customers use mixed payment methods (cards + e-wallets)

• You prefer transparent, pay-per-use pricing

• You need developer-friendly integration options

• You want same-day payouts without fees

Choose PayMongo if:

• Your business is primarily card-focused

• You have minimal cross-border transactions

• You prefer a Philippine-focused provider

• Your payment needs are straightforward

Choose Maya Business if:

• Your customers are heavily invested in the Maya ecosystem

• E-wallet transactions dominate your sales

• You need strong mobile payment support

Choose GCash Pro if:

• GCash represents 80%+ of your transactions

• You have minimal card processing needs

• Your customers are primarily GCash users

Choose UnionBank if:

• You have an existing banking relationship

• You process high volumes (₱1M+ monthly)

• Enterprise features are more important than cost

• You prefer traditional banking stability

Implementation Tips for Maximum Savings

1. Analyze Your Payment Mix

Before choosing a provider, analyze your actual payment method distribution. A business thinking they're "card-heavy" might discover that 60% of transactions actually come through e-wallets, completely changing the cost calculation.

2. Consider Customer Preferences

Offering payment methods your customers prefer can increase conversion rates, potentially offsetting higher processing fees through increased sales volume. HitPay's comprehensive method support helps maximize this benefit. (HitPay Payment APIs)

3. Plan for Growth

Choose a provider that can scale with your business. HitPay's pay-per-use model means costs scale naturally with revenue, while providers with volume tiers might create cost jumps as you grow.

4. Test Integration Complexity

Factor in development time and ongoing maintenance. HitPay's multi-language API support and comprehensive documentation can reduce both initial setup and long-term maintenance costs. (HitPay Payment APIs)

The Future of Payment Processing in the Philippines

The Philippine payment landscape continues evolving rapidly. The successful implementation of QR Ph demonstrates the government's commitment to digital payment standardization, likely leading to further cost reductions and efficiency improvements. (BitPinas QR Ph Adoption)

For small businesses, this evolution creates opportunities to reduce costs while improving customer experience. Providers like HitPay, with their comprehensive local payment method support and transparent pricing, are well-positioned to help businesses navigate these changes. (HitPay GCash Partnership)

The trend toward no-monthly-fee models reflects the needs of small businesses that want predictable, usage-based pricing. As competition increases, we expect to see continued pressure on transaction fees and more innovative pricing models that benefit smaller merchants.

Conclusion

For small businesses in the Philippines seeking the most cost-effective payment processing solution, HitPay emerges as the clear winner for most scenarios. Its combination of competitive rates across multiple payment methods, transparent pricing, and comprehensive local payment support provides the best overall value. (HitPay Philippines Pricing)

The 2.3% GCash rate combined with reasonable card processing fees creates an effective blended rate that's hard to beat, especially for businesses with mixed payment methods. The absence of setup fees, monthly charges, and payout costs further enhances the value proposition.

However, the "best" choice ultimately depends on your specific business needs. Card-heavy businesses might find PayMongo competitive, while GCash-dominant retailers could benefit from GCash Pro's specialized focus. The key is understanding your actual payment mix and calculating the true effective rate across all transaction types.

As the Philippine digital payment ecosystem continues maturing, small businesses have more options than ever to reduce processing costs while improving customer experience. By choosing the right provider and optimizing your payment method mix, you can significantly impact your bottom line while positioning your business for future growth in the digital economy.

Frequently Asked Questions

What are the cheapest payment gateways with no monthly fees for small businesses in the Philippines?

The top 5 cheapest no-monthly-fee payment gateways for Philippine small businesses are HitPay, PayMongo, Maya Business, GCash Pro, and UnionBank. These providers offer competitive per-transaction rates without requiring monthly subscription fees, making them ideal for businesses with lower transaction volumes. Each has different strengths depending on your preferred payment methods and average order values.

How much does HitPay charge for card transactions in the Philippines?

HitPay charges 3% + ₱15 for Visa and Mastercard transactions in the Philippines, and 3.4% + US$0.3 for USD transactions. For GCash payments, the rate is significantly lower at just 2.3%. HitPay operates with no setup fees or monthly fees, charging only per transaction, which makes it particularly attractive for small businesses with variable sales volumes.

What is the effective cost difference between payment gateways for a typical ₱2,000 transaction?

For a typical ₱2,000 transaction, the cost differences can be significant across providers. The effective blended rate varies based on your payment method mix, with some gateways offering better rates for local payment methods like GCash or bank transfers compared to international cards. Small businesses should calculate their effective rate based on their actual payment method distribution rather than just looking at headline rates.

Do these payment gateways charge cross-border fees for international transactions?

Yes, most payment gateways charge additional cross-border fees for international transactions. For example, PayMongo charges an additional 1% cross-border fee for all payments from non-Philippine issued cards. These fees can significantly impact your effective rate if you serve international customers, so it's important to factor them into your cost calculations when choosing a provider.

What payment methods are supported by these no-monthly-fee gateways?

These payment gateways support a wide range of local and international payment methods. HitPay offers over 50 payment methods including GCash, GGives, GCredit, Visa, Mastercard, and supports more than 150 currencies. Most providers support the mandatory QR Ph standard implemented by BSP, along with popular local wallets and online banking options from major Philippine banks like UnionBank.

How do I choose the best payment gateway for my small business in the Philippines?

Choose based on your average order value, monthly transaction volume, and preferred payment methods. Calculate the effective blended rate using your actual transaction mix rather than just comparing headline rates. Consider factors like integration ease, customer support, settlement times, and additional features like POS systems or e-commerce integrations. For businesses with ₱2,000 AOV and mixed payment methods, the rankings in this analysis provide a good starting point.

Sources

1. https://bitpinas.com/news/qr-ph-full-adoption-deadline/

2. https://blog.hitpayapp.com/hitpay-gcash-partner-philippines/

3. https://docs.antom.com/ac/antomop/unionbank

4. https://hitpayapp.com/ph/paymentapis

5. https://hitpayapp.com/ph/pricing

6. https://www.lexology.com/library/detail.aspx?g=2a0b4f8a-94e3-4d38-b5aa-1af70506ea23

7. https://www.paymongo.com/academy/transaction-fees-rates-and-charges

FAQ

What are the cheapest payment gateways with no monthly fees for small businesses in the Philippines?

The top 5 cheapest no-monthly-fee payment gateways for Philippine small businesses are HitPay, PayMongo, Maya Business, GCash Pro, and UnionBank. These providers offer competitive per-transaction rates without requiring monthly subscription fees, making them ideal for businesses with lower transaction volumes. Each has different strengths depending on your preferred payment methods and average order values.

How much does HitPay charge for card transactions in the Philippines?

HitPay charges 3% + ₱15 for Visa and Mastercard transactions in the Philippines, and 3.4% + US$0.3 for USD transactions. For GCash payments, the rate is significantly lower at just 2.3%. HitPay operates with no setup fees or monthly fees, charging only per transaction, which makes it particularly attractive for small businesses with variable sales volumes.

What is the effective cost difference between payment gateways for a typical ₱2,000 transaction?

For a typical ₱2,000 transaction, the cost differences can be significant across providers. The effective blended rate varies based on your payment method mix, with some gateways offering better rates for local payment methods like GCash or bank transfers compared to international cards. Small businesses should calculate their effective rate based on their actual payment method distribution rather than just looking at headline rates.

Do these payment gateways charge cross-border fees for international transactions?

Yes, most payment gateways charge additional cross-border fees for international transactions. For example, PayMongo charges an additional 1% cross-border fee for all payments from non-Philippine issued cards. These fees can significantly impact your effective rate if you serve international customers, so it's important to factor them into your cost calculations when choosing a provider.

What payment methods are supported by these no-monthly-fee gateways?

These payment gateways support a wide range of local and international payment methods. HitPay offers over 50 payment methods including GCash, GGives, GCredit, Visa, Mastercard, and supports more than 150 currencies. Most providers support the mandatory QR Ph standard implemented by BSP, along with popular local wallets and online banking options from major Philippine banks like UnionBank.

How do I choose the best payment gateway for my small business in the Philippines?

Choose based on your average order value, monthly transaction volume, and preferred payment methods. Calculate the effective blended rate using your actual transaction mix rather than just comparing headline rates. Consider factors like integration ease, customer support, settlement times, and additional features like POS systems or e-commerce integrations. For businesses with ₱2,000 AOV and mixed payment methods, the rankings in this analysis provide a good starting point.

Citations

1. https://bitpinas.com/news/qr-ph-full-adoption-deadline/

2. https://blog.hitpayapp.com/hitpay-gcash-partner-philippines/

3. https://docs.antom.com/ac/antomop/unionbank

4. https://hitpayapp.com/ph/paymentapis

5. https://hitpayapp.com/ph/pricing

6. https://www.lexology.com/library/detail.aspx?g=2a0b4f8a-94e3-4d38-b5aa-1af70506ea23

7. https://www.paymongo.com/academy/transaction-fees-rates-and-charges