“The improvement in the global economic conditions has been a major growth driver in the OFW remittances during 2018. Depreciation of Philippine Peso was also a factor that raised the amount of OFW remittances.”
Analysts at Ken Research in their the latest publication “Philippines Remittance and Payments Market Outlook to 2024 – Growth Backed by Sustained Internal Migration, Rise in Overseas Filipino Workers and Surge in BPO Sector” believe that promoting the latest technologies such as digitization of money transfer, new transaction platforms and increasing deployment of Filipinos in other countries will aid the Philippines International Remittance Market.
Growing Internal and External Migration: Migration of labor has been an important mode of movement of Filipinos to other countries particularly because of the scarcity of jobs with inadequate income in the Philippines and due to the demand, principally in less skilled occupations in overseas nations. The majority of the OFWs primarily originate from the Cavite, Laguna, Batangas, Rizal and Quezon (CALABARZON) region (approximately 17%), and the peripheral regions of Central Luzon (approximately 15%) and Metro Manila (approximately 14%). The regions accounting for the least number of OFWs include Caraga, MIMAROPA (Mindoro Oriental and Occidental, Masbate, Romblon and Palawan) and the Cordillera Administrative Region.
Seasonal Variations in Philippines Remittance: International remittance inflows in the Philippines are highly affected by seasonal patterns. For instance, March is the month for graduation in the Philippines and remittances have showcased significant incline in this month over the past five years. Remittances also inclined in the months from May to June as it is the period of opening of schools. Moreover, transfer of finances from OFWs also exhibited a hike amidst the holiday season especially in the month of December as they sent more money back home for Christmas festivities, gifts, and other holiday-related expenses.
The gains that families in The Philippines draw from remittances principally hinge on where and how they spend the remittances. For instance, Filipino households which obtained remittances from overseas Filipino workers have spent relatively less on the consumption of goods such as food and more on investment goods such as housing and education. International remittances have been characteristically utilized for investments in human capital and physical assets, which majorly include health and education. Such investments were observed to be directly responsible for invigorating growth.
Competition Forces in the Philippines Remittance Market: In the Philippines, international remittance has been dominated by Banks and MTOs such as Banco De Oro, Bank of Philippines Island, Metropolitan Bank, Western Union, MoneyGram, and others. On the other hand, the market is becoming competitive with the introduction of new technologies. New players and startups are offering different forms of money transfer services. With the advent of digital currency and blockchain technology, companies are becoming adaptable for currencies like bitcoin to enable remittance services.
Growth of Pawnshops: The broader reach of pawnshops has been fundamentally attributed to the ease of establishment. In contrast to a bank, a pawnshop requires a lesser amount of space, fewer staff, and requires much less capital, where it is mandatory for each pawnshop branch to have a capital of just PHP 100,000, as stated by BSP. Out of the 16,723 pawnshops in 2016, around 7,400 also provided some auxiliary services such as remittances facilitation, money changing, and bills payment facilitation. By the end of the first quarter of 2018, the number of pawnshops in The Philippines increased to 16,582.
Key Segments Covered:-
Domestic Remittance
By Remittance Channels
Banks
Non Banks
By Types of Services
Branch Pick-Up
Online
Door to Door
Prepaid Cards
Direct Credit to Bank Account
By Major Flow Corridors
Bill Payment Market
By Channel of Payment
Banks
Non Banks
By Type of Payments
Water
Electricity and Fuel Bills
Insurance Premium
Communication
Education
By Mode of Payment
Offline
Online
Method of Payment
Convenience Stores
Online/Mobile Payments
Biller’s Business Offices
Remittance Companies
Banks and Others Offline
International Remittance Market
By Major Flow Corridors
US
UAE
KSA
UK
By Remittance Channels
Banks
Non Banks
By Payout Mode
Cash
Non-Cash/Electronic Transfer
Door to Door Delivery Method of Payment
Key Target Audience:-
Money Transfer Operators
Banks
Pawnshops
Bill Payment Companies
M-Wallets
Mobile Money Companies
Central Bank
Investors and PE Firms
Convenience Stores
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2024
Companies Covered:-
International Remittance Companies:
Banco de Oro
The Bank of Philippine Islands
Metropolitan Bank
Cebuana Lhuillier
M Lhuillier
Palawan Pawnshop
Western Union
LBC
iRemit
Wells Fargo
Xoom
Domestic Remittance Companies:
Palawan Pawnshop
Cebuana Lhuillier
Smart Padala
M Lhuillier
LBC Express
BDO
BPI
Western Union
Keywords:-
Philippines Bill Payment Market
Philippines Remittance Industry
Philippines Remittance Market
Transportation Bill Market Philippines
Insurance Premium Bill Payment Market Philippines
Mobile Phone Payment Market Philippines
Convenience Stores Bill Payment Philippines
NCR Domestic Remittance Philippines
Manila Domestic Remittance Market
Pawnshop Remittance Philippines
LBC Express Philippines Remittance
Western Union Philippines Remittance
Smart Padala Philippines Revenue
Pinoy Express Philippines
Cebuana Lhuillier Philippines
Banco De Oro Philippines
Complete Report is Available Here:-
Philippines Remittance and Payments Market Outlook
Related Reports by Ken Research:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
