Philippines Remittance Market

Philippines Remittance Market Overview:          

The Philippines remittance market is projected to exhibit a growth rate (CAGR) of 12.20% during 2024-2032. The market in Philippines is majorly driven by robust overseas workforce, continual advancements in digital transfer platforms, supportive government initiatives, heightened economic stability through consumption, and strategic expansions in service networks.

Philippines Remittance Market Trends:

Growing Diaspora and Labor Migration     

The Philippines' remittance market is primarily fueled by its vast diaspora of overseas Filipino workers (OFWs). These workers are spread globally, often in search of better employment opportunities, and regularly send money back to their families in the Philippines. This inflow is crucial as it provides a significant source of foreign currency and supports the livelihoods of millions of Filipinos. The Philippine government, recognizing the importance of these remittances, has implemented various programs to support OFWs, including labor agreements with foreign countries and protection policies that ensure their rights and welfare. This ongoing support helps sustain the flow of remittances by facilitating safer and more reliable employment opportunities for Filipinos overseas.    

Advancements in Digital Remittance Services 

Technology based remittance products such as mobile wallets and Fintech based transfer solutions have gained popularity recently as they are increasingly time effective and even instant. Digital transactions were already on the rise before the COVID-19 pandemic due to the changing nature of consumer needs and preferences, but the pandemic crosscut this growth as physical distancing reduced the feasibility of cash pickups. These platforms improve security and have a lower cost of transferring funds compared to traditional methods, creating benefits for both the sender and the receiver. It is largely anticipated that this digital shift will persist to rise as more individuals in the Philippines obtain technical knowledge and as widespread usage of smartphones in the nation progresses.

Government Initiatives and Support

The Philippine government actively contributes to the robustness of the remittance market through various supportive measures aimed at both easing and safeguarding the remittance process. Initiatives include improving financial literacy among OFWs and their families, streamlining remittance processes, and offering incentives for using official channels. These measures help to ensure that remittances are sent through formal channels, which are safer and more reliable. Furthermore, the government often negotiates bilateral agreements that ease labor migration and remittance flows, ensuring that OFWs have secure and legal pathways for employment abroad​  

Expansion of Service Networks and Partnerships    

The expansion of networks and partnerships among banks, money transfer operators, and fintech companies is crucial in increasing the accessibility and efficiency of remittance services. These partnerships are particularly beneficial in reaching rural and underserved areas where traditional banking services might be limited. They also help integrate more of the population into the formal financial system, promoting financial inclusion. By improving service delivery and expanding reach, these collaborations ensure that remittances can be sent and received more conveniently and securely across the country​. 

Philippines Remittance Market News: 

• On 9^th May 2024, Pomelo and Thunes partnered to drive innovation in cross-border finance with a new credit-based digital wallet solution. The strategic partnership aims to transform the way remittances are handled via Thunes’ digital wallet integration, reducing costs, and connecting families in new ways. 
• On 15^th November 2023, TerraPay and Maya partnered to empower seamless money transfers for Filipinos, worldwide. This collaboration aims to make international remittances more accessible, convenient, and secure for Filipinos across the world. 

Philippines Remittance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on mode of transfer, type, channel, and end use.

Mode of Transfer Insights:

• Digital
• Traditional (Non-digital)
   

The report has provided a detailed breakup and analysis of the market based on the mode of transfer. This includes digital and traditional (non-digital).

Type Insights:

• Inward Remittance
• Outward Remittance
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes inward remittance and outward remittance.

Channel Insights:

• Banks
• Money Transfer Operators
• Online Platforms (Wallets)
   

The report has provided a detailed breakup and analysis of the market based on the channel. This includes banks, money transfer operators, and online platforms (wallets).

End Use Insights:

• Migrant Labor Workforce
• Personal
• Small Businesses
• Others
   

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes migrant labor workforce, personal, small businesses, and others.

Regional Insights: 

• Luzon  
• Visayas 
• Mindanao 
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Luzon, Visayas, and Mindanao.  

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Philippines Remittance Market Report Coverage:

Key Questions Answered in This Report:

• How has the Philippines remittance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Philippines remittance market?
• What is the breakup of the Philippines remittance market on the basis of mode of transfer?
• What is the breakup of the Philippines remittance market on the basis of type?
• What is the breakup of the Philippines remittance market on the basis of channel?
• What is the breakup of the Philippines remittance market on the basis of end use?
• What are the various stages in the value chain of the Philippines remittance market? 
• What are the key driving factors and challenges in the Philippines remittance?
• What is the structure of the Philippines remittance market and who are the key players?
• What is the degree of competition in the Philippines remittance market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Philippines remittance market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Philippines remittance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Philippines remittance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.