According to the World Bank’s Remittance Prices Worldwide (RPW) 2025 Report, the global average cost of sending money overseas (remittance) rose to 6.49% in the first quarter of 2025, up from 6.26% in the previous quarter. The figure is more than double the target set by the United Nations’ Sustainable Development Goals (SDGs), which call for reducing global remittance costs to below 3%.
For Filipino SMEs — who account for 63% of the national workforce, according to the World Bank — the rising fees represent more than a statistical bump. They cut directly into margins, disrupt cash flows, and limit access to global markets. Without timely solutions, analysts warn, such costs could stifle the country’s most dynamic growth engines.
Nagesh Devata, Senior Vice President for Asia-Pacific at Payoneer
“High transaction costs remain one of the biggest barriers to global trade for small businesses,” said Nagesh Devata, Senior Vice President for Asia-Pacific at Payoneer, a global payments platform serving millions of businesses worldwide. “More and more SMEs are choosing Payoneer as their trusted partner. We delivered 16% year-on-year revenue growth in Q2 2025, with SMEs driving much of this momentum—reinforcing our role as an enabler of cross-border growth.”
Breaking down barriers to global trade
The Bangko Sentral ng Pilipinas (BSP) has long acknowledged the hurdles in cross-border payments: high fees, limited transparency, and slow processing times. For smaller firms, these obstacles can erode profits and delay business expansion.
“Even a few days’ delay in international transfers can mean the difference between winning and losing a contract,” said one fintech analyst. “When multiplied across hundreds of thousands of small businesses, the impact on the broader economy is significant.”
Payoneer aims to bridge that gap through a tailored financial stack designed for globally operating SMEs. The platform offers multi-currency receiving accounts, allowing Filipino businesses to receive payments from overseas clients as if they were local entities — bypassing expensive wire transfers and currency conversion costs.
This model not only simplifies transactions but also levels the playing field for SMEs competing in international markets. Payments become faster, more transparent, and significantly more affordable, giving smaller enterprises the agility they need to expand.
Expanding remittance, market reach through technology
“Companies built for global work from the start are positioned to stay ahead,” Devata said. “They understand that going beyond borders means access to new customers, talent, and technologies—and ultimately, greater economies of scale.”
However, Devata also noted that many SMEs struggle with the logistical and compliance hurdles of hiring abroad. Legal and tax requirements can be overwhelming, particularly for firms new to global operations.
To address this, Payoneer acquired Skuad in 2024, enhancing its platform with Employer of Record (EOR)capabilities in over 160 countries. This integration enables businesses to hire and manage teams across borders while staying compliant with local regulations—a feature increasingly vital in today’s remote-first economy.
“With these capabilities, Payoneer isn’t just processing payments,” Devata added. “We’re helping small businesses operate like global enterprises — with confidence and compliance built in.”
Payoneer: Empowering Philippine SMEs for global growth
For entrepreneurs like Sherwin Alegre, founder of Microsource Inc., such tools can be transformative. “Scaling globally used to be daunting,” he said. “We didn’t have the right infrastructure for international transactions. Partnering with Payoneer helped us streamline payments, improve efficiency, and focus on innovation.”
According to Monique Avila, Payoneer’s Head of Customer Success for APAC, stories like Alegre’s are becoming more common. “SMEs are realizing that global expansion doesn’t have to come with unnecessary friction,” she said. “With the right partner, they can move money, pay talent, and grow their business anywhere.”
By providing Filipino SMEs with faster, more affordable access to international markets, Payoneer is helping fuel a more resilient, globally competitive economy.
As remittance costs rise, the company’s expanding suite of cross-border payment solutions could be the key to keeping the country’s small businesses connected — and thriving — in an increasingly global marketplace.
