27 Aug 2024
Did you know that there are 1.96 million OFWs around the globe who make monthly money transfer to Philippines from UK which boosts the Filipino economy? Keep reading this blog to learn the entire remittance market trends for the Philippines in 2024.
Being one of the significant actors in the global remittance industry, the Philippines has experienced substantial changes in the international inbound remittance flow. New calculations show a moderately uniform 2. 5% by 2023, thus recording a much higher transaction value of US$ 39. 83 billion in 2024. The future seems bright based on the following:
It focuses on numerous market features such as purchase transaction value, purchase transaction volume, and, ultimately, average transaction value. Competitive position analysis on a level provides information regarding the balance of market share between key players in the context of the Philippine market. The market is analyzed qualitatively to explain the features of digital, mobile, and non-digital modalities to get a detailed picture of the market mechanics. Finally, the analysis of the demographic of the consumers enhances the specifics of the sender characterization based on age, income, and occupation, correlated with the purpose and beneficiaries of the online money transfer to Phillipines.
The Philippines is a continuously emerging market in a global remittance context that currently affords constant avenues for development, advancement and novelty. Therefore, with this projection, the market is promising for stakeholders who wish to invest in the remittance business in the future. Moreover, every expat tries to maximize the value of their remittances, which may eventually increase the total inflow significantly.
The domestic remittance market is still controlled by pawnshops and MTO given the fact that there is a large unbanked or under-banked population in the Philippines. The huge domestic remittance market has also attracted global giants like the Western Union. On the other hand, the domestic players, especially the Philippines-based service providers like the banks, regional and national pawnshops, and other providers, also make considerable market share contributions and are close competitors to international service providers.
BDO Universal Bank Incorporated ranked at the top during the year 2018 as the biggest player in the Philippine market for international remittance for the Bank of Philippine Islands, while Metropolitan Bank claimed the third-largest position in the international remittance market.
Domestic workers, together with those Permanently living in a foreign country, added up to the total remittance, and the in-country Filipinos taking a bigger part of it are those who migrated to another area in search of a better income and better employment opportunities. More of the said total local/remittance came from individuals/families who also benefited from international remittance from Filipinos living in other countries. Incoming domestic remittance was also seen to be made in the top city provinces among the provinces mentioned, inclusive of Quezon City, Manila, Makati, Caloocan, Paranaque, Pasig, Mandaluyong, Taguig, Pasay, and Baguio.
Most OFW choose ACE Money Transfer to send money online to Philippines. Sometimes, a good portion of the said amount is ordinarily reduced each time there is a conversion from a foreign currency to Php because of low or fixed forex rates. Contrary to other organizations, ACE does not intend to benefit from unauthorized currency exchange and, therefore, offers fair exchange rates according to the market. It means that you can buy currency at a realistic price after you’ve paid attention to the market for a while.
The rates offered by banks, financial institutions, and other money transfer agencies can be very low sometimes and remain the same for a long time. Of course, ACE has the most favorable exchange rates because its objective is to increase remittances to the Philippines and boost its economy.
Moreover, ACE is reliable because there are no time lags in the transactions. It enables you to make a rush payment to help in times of urgency. The fastest transaction can take a few minutes from the actual process of transferring.
All the privacy of the users’ information and money being transferred is secured at once by ACE Money Transfer. Using the app, you have two-factor authentication to protect the data from online thefts. It permits data encryption and other basic security features to safeguard the clients’ money.
So, this was a complete outlook on the remittance market of the Philippines in 2024. ACE Money Transfer has been helping this country in increasing its remittance flow and boosting its economy. If you wish to do the same, sign up on ACE and send money to Philippines for free on your first attempt.
New anti-money laundering regulations and stricter KYC norms are anticipated.
They are reducing transaction costs and improving the speed of transfers.
Natural disasters can temporarily disrupt remittance flows, highlighting the need for resilient infrastructure.
Seasonal migration, especially for agricultural work, leads to fluctuating remittance volumes throughout the year.
Fluctuations in forex rates can significantly impact the amount received by beneficiaries.
References:
https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos
