Research commissioned by Wise, a global money transfer firm, reveals that 73% of Filipinos still use traditional platforms like domestic banks for international transactions, leading to higher fees.
Additionally, only 21 per cent are aware of the “extra costs” charged to them through exchange rate mark-ups.
Given the importance of remittances to the Philippines, which reached a record US$37.2 billion in 2023, Wise aims to offer a more efficient and cost-effective solution.
Wise, formerly known as “TransferWise,” is making significant strides in the Philippines by focusing on transparency and cost efficiency to address the prevalent issue of high bank fees and hidden costs in international money transfers.
Strategic approach to the Philippine market
Wise Philippine Country Manager Areson Cuevas presenting Wise and its products to the media
At a recent media briefing in BGC, top executives Areson Cuevas, country manager of Wise Philippines, and Debora Widawati, regional product manager of Wise, discussed the company’s strategy to reassure customers that Wise can alleviate concerns about high bank fees and hidden charges in international money transfers.
Areson emphasized the company’s commitment to solving the hidden fees problem. “We want to make sure our customers know that Wise addresses this pain point,” he stated. The initial focus is on personal accounts, particularly targeting the freelancer community, which forms a significant part of their user base in the Philippines.
Expanding beyond personal accounts
During the launch, Debora highlighted Wise’s vision, saying, “This is just the start of our long journey in the Philippines. We aim to introduce Wise business accounts and the Wise platform in the future.”
According to her, these services will cater to various segments, including freelancers, dependents of overseas Filipino workers (OFWs), international travelers, and online shoppers.
“We’ve found that 63% of Filipinos engage in international money at least once a month and 59% of them receive money from overseas,” Debora further shared.
Partnerships and regulatory compliance
As a BSP-regulated financial institution, Wise is set to join Instapay, significantly expanding its network of local partners. “With Wise joining Instapay, customers will soon be able to send and receive money from over 160 banks and fintech companies,” noted Areson, enhancing the accessibility and convenience of Wise’s services.
Enhanced user experience and product features
Wise currently boasts 10 million global users and is expanding its target customer base. The company has seen growing interest from freelancers and dependents of OFWs, who benefit from its low-cost and transparent fee structure. Debora confirmed that Wise is focusing on integrating with more banks through Instapay.
Wise account customers can easily obtain the new Wise prepaid card, which costs PHP 330 before VAT for delivery, with free and expedited options available. A virtual card version is free and instantly available.
Future developments and market focus
While currently focused on the Philippine market, Wise has plans to expand further into Southeast Asia. “Our full attention is on the Philippines right now, but we have a long-term vision to continue expanding globally,” said Debora. She highlighted Wise’s unique proposition of facilitating local transactions faster and more seamlessly, making it an ideal companion for expatriates and frequent travelers.
Photo shows (from left:) Wise Senior Product Manager Yee Won Nyon, Wise Philippines Country Manager Areson Cuevas, and Wise Regional Product Manager SEA Debora Widawati
Customer feedback and trust
Several users at the event shared positive experiences with Wise, citing its reliability, transparency, and low fees.
Jenny Magallanes, a remote worker and independent contractor with a US-based tech company, praised Wise for its transparency and reliability, eliminating the anxiety of waiting for remittances. “As a remote worker in the Philippines for 3 years now, I rely on Wise for my cross-border money management needs. Being paid in another currency is no longer an issue as I can easily convert it into my local currency,” she shared.
Ginger Arboleda, co-founder of Taxumo, echoed this sentiment: “For me, it’s all about trust. My clients in the US trust Wise, which is why they recommended it to me. Besides running a business, I’m also a freelancer and organize events in the US. Their confidence in Wise has led me to start using it, and I was also drawn to its reliability and lower fees.”
For her part, Katherine Castro, CEO of THRIVE, shared her experience, saying, “When I started freelancing, I had this international client who paid me monthly. Back then, I still wasn’t aware of Wise so a significant portion of my earnings went to fees. Now that I know that Wise is transparent (doesn’t have hidden fees), reliable, and keeps you informed about when you’ll receive your money, I believe we will be using it in the future as we plan to work with foreign clients again.”
Outlook on remittances and future products
Company representatives expressed confidence in the continued robust health of remittance flows to the Philippines and outlined plans to introduce more advanced features and products tailored to the local market.
In conclusion, Areson stated that Wise’s rebranding and strategic focus on the Philippines demonstrate its commitment to addressing hidden fees and providing a transparent, seamless, and cost-effective service.
Likewise, the company’s plans to further expand its product offerings and partner networks signal a promising journey ahead for Wise and its customers in the Philippines.