Despite the rapid rise of digital wallets, fintech apps, and online remittance platforms, cross-border payments remain stubbornly expensive for Filipinos—especially overseas workers and globally connected businesses.
In an exclusive interview of fintechnewsph with Raphaela (Raphie) Amat, founder and in-house Licensed Immigration Adviser of Koru Adventures and Travel Inc, a New Zealand-focused immigration consultancy, digital rails have improved speed and access, but high costs persist due to opaque fee structures, forced currency conversions, and uneven financial infrastructure across the country.
Founder and in-house Licensed Immigration Adviser
of Koru Adventures and Travel Inc
Traditional Banks Charge Hefty Fees
Traditional banking channels remain among the most expensive options. International transfers routed through the SWIFT network often impose fees on both ends of the transaction. Sending money can cost between USD 25 to USD 35, with recipients charged an additional USD 15 upon receipt. For smaller transfers, these flat fees consume a disproportionate share of the total amount.
“If you’re sending just USD 100 and you lose USD 35 to fees, that’s already a major problem,” Amat noted during the interview. “That’s where the system really breaks down for ordinary users.”
Digital platforms offer an alternative, but they come with their own challenges. Unlike flat-fee bank transfers, these platforms typically charge percentage-based fees that vary depending on the origin of funds. On top of that, users often face forced currency conversion at non-competitive exchange rates, plus an additional margin layered onto the forex spread.
“These costs aren’t always transparent,” Amat said. “People only notice when the amount that lands in their bank account doesn’t match what an FX calculator shows.”
Currency availability also complicates matters. Many Philippine banks do not support less common foreign currencies, such as the New Zealand dollar (NZD). For the firm, it took several years to identify a local bank capable of processing NZD transactions, highlighting a structural limitation that fintech platforms increasingly aim to solve.
Fintech Improves Speed, Access, and Savings
To navigate these challenges, globetrotters like Raphie Amat are increasingly turning to digital payment platforms such as Wise. The platform allows users to hold and transact in multiple currencies, enabling Amat’s firm to receive and spend directly in New Zealand dollars, thereby avoiding repeated currency conversions and minimizing foreign exchange losses. Clients also benefit from the ability to transfer funds without incurring international transfer fees.
“Instead of paying USD 25 to send and another USD 15 to receive, both sides now pay almost nothing,” Amat said. “For smaller payments, that difference is huge.”
For Overseas Filipino Workers (OFWs), the benefits vary depending on urgency, location, and access to banking infrastructure. Wise enables near-instant transfers between Wise accounts and allows recipients to withdraw funds or spend directly using a debit card. However, cash-based communities still rely on remittance centers like Cebuana, where physical branches provide easier access despite higher costs.
“The Philippines is not homogenous,” Amat emphasized. “Urban families and rural families experience money very differently.”
While fintech has not eliminated fees entirely, it has reduced costs in many use cases, particularly for frequent, smaller transactions. For larger payments, traditional banks can still make sense due to capped fees. The key, the company said, lies in choosing the right tool for the right purpose.
Beyond Cost: Speed, Access, and Efficiency
Beyond cost, fintech platforms are solving deeper problems in speed, access, and efficiency. Traditional bank transfers can take four to five days to clear, frustrating clients who expect near-instant transactions in a digital-first world. Fintech platforms now complete similar transfers within hours.
Efficiency also extends behind the scenes according to Amat. Fintech tools integrate with accounting software, reduce reconciliation time, and provide clearer transaction records features that traditional banks and remittance providers rarely prioritize.
“Fintech companies don’t just solve one problem and stop,” Amat said. “They keep improving the experience.”
As regional payment links expand and conversations around stablecoin use cases continue, the promise of cheaper, faster cross-border payments grows stronger. But for many Filipinos, especially OFWs, costs remain high—not because digital rails don’t exist, but because access, transparency, and local realities still lag behind the technology.
