Philippines Remittance Market
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Philippines Remittance Market
WHAT IS THE FUTURE OUTLOOK FOR PHILIPPINES INTERNATIONAL REMITTANCE MARKET
The domestic remittance market is expected to augment at a CAGR of ~% from USD ~ million in 2016 to USD ~ million in 2021 . Rapid growth in the introduction and use mobile technologies in the country for money transfer and bill payments are a factor that depicts the growth of domestic remittance and bill payments market of the Philippines . Continued growth in internal migration is expected to sustain the growth of money transfers taking place in the Philippines . The Philippines has outshined India in terms of voice-based outsourced projects and has become the worldwide leader in the call center industry . A noticeable amount of FDI inflows was invested in BPO , electronics and energy sector . With the continual growth in FDI flows in the BPO sector , there are expected to be more employment opportunities leading to large scale migrations to urban cities . This and the continued zeal of domestic Filipinos to send money to their families will provide a major thrust to the domestic remittance market .
The bill payments market is expected to grow at a CAGR of ~% during the forecast period 2017-2021 . One of the major factors that are expected to augment the bill payment factor is the mobile phone penetration in the country . Internet subscriptions in the Philippines have grown considerably and now cover more than onethird of the country ’ s total population . The increase in the number of water connections , and mobile , internet and cable TV subscribers , is likely to result in a healthy demand for bill payment services in the Philippines . The expansion of payment centers to the semi-urban and rural setting will also see the number of bill payment transactions increasing in the coming years .
International remittance market in the Philippines will continue to be driven by the increasing deployment of Filipinos in other countries . Unskilled workers and laborers will uphold their status as the largest deployed fraction of overseas workers and will continue to account for the largest share of aggregate remittances . Even though the demand of OFWs will be high from countries in the Middle East , the US will continue to account for the highest amount of remittances in the coming years , as the amount of money sent is likely to be higher compared to other nations . The unaccounted remittances to an extent would be properly channeled and is expected to raise the transaction volume in the coming years . Moreover , the average amount remitted to Philippines per person is expected to increase as the Filipinos are gradually getting enrolled into jobs that require professional skills and qualifications owing to their year on year improving educational qualifications and such jobs are paid better . Increased earnings of OFWs would raise the amount of remittance .
Figure : Philippines Remittance and Bill Payments Market Future Projections on the Basis of Transaction Volume in USD Million , 2017-2021
USD Million
2017 2018 2019 2020 2021
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