ResearchAndMarkets.com, the world’s largest market research store, has just released the result of its latest study entitled “Philippines Remittance Market Size, Share & Trends Analysis Report by Mode of Transfer,” where it was predicted that the country’s remittance market would reach USD 1.84 billion by 2030.
The report further stated that remittances will be growing at a compound annual growth rate (CAGR) of 13.3% between 2022 to 2030, and this growth may be attributed to the initiatives taken by the Philippine government.
According to ResearchAndMarkets.com, migration activities and the government’s initiatives for overseas Filipino workers (OFWs), such as its financial literacy programs and the adoption of the ‘International Day of Family Remittances,‘ have contributed positively to the country’s growing remittances sector.
The massive number of Overseas Filipino Workers (OFWs) employed in several countries has also contributed to the market’s growth. For instance, according to the Philippine Statistics Authority (PSA), the total number of OFWs was estimated to have reached 1.77 million within six months of 2020 or between April to September of that same year.
According to the World Bank Group, the industry has also seen remittances to Low- and Middle-Income Countries (LMICs) increasing by 4.2% in 2022, reaching USD 630 billion. This comes right on the heels of a near-record recovery of 8.6% in 2021, which has since driven further growth for the industry.
Use of banking services, new technologies for faster remittances
According to the report, two other significant factors that can be expected to create new growth opportunities for the Philippines’ remittance industry are the increasing adoption of banking services across the country and the adoption of digital transactions.
ResearchAndMarkets.com said that Philippine-based remittance service providers have continuously been implementing new technologies, such as integrating blockchain into the remittance platform, which has resulted in faster money transfers.
One example is in August 2022, when the government imposed a nationwide lockdown during the COVID-19 pandemic, which shifted people’s attention toward digital means and technology. It was also when a blockchain infrastructure company called Roxe announced its partnership with Cebuana Lhuillier, a money transfer service provider.
This partnership aimed to enable clients in the Philippines to execute seamless cross-border remittance payments by combining Cebuana Lhuillier’s extensive fund distribution methods and the Roxe blockchain network.
Another case was in October 2020, when ING and UNICEF introduced the ‘Fintech for Impact’ initiative to support fintech start-ups across the country. The top five start-ups, including BeamAndGo Pte. Ltd., were chosen to receive equity-free financing and technical and commercial mentoring from ING, UNICEF, and other professionals for a year.
The selection of BeamAndGo was anticipated to the addition of functionality of helping migrants and their families to make responsible spending decisions for the household and manage their finances through its non-cash remittance services.
Hence, such initiatives proved to be helpful for market growth during the COVID-19 pandemic.
Highlights of the Philippines’ Remittance Market Report
- The digital segment is expected to register the fastest growth during the forecast period. The growing internet penetration among Filipinos can be attributed to the segment’s growth
- The inward remittance segment dominated the market in 2021, attributed to the high migration rate of Filipinos in search of better job opportunities
- The online platforms (wallets) segment is expected to witness the fastest growth over the forecast period. The developing infrastructure for online money transfer across the country is one of the major factors anticipated to drive the segment’s growth
- The personal segment is expected to witness the fastest growth over the forecast period, attributed to the growing use of remittance platforms for sending money for household purposes
For more information about this report, visit https://www.researchandmarkets.com/r/ass32u.