The Philippines international remittance market registered a majority contribution from inbound remittances from other countries in 2017. Stable progress in the diversity and coverage of global remittance networks has enabled more OFWs to remit money at a reasonable cost of services which include automated teller machines, web-based services, and reusable / reloadable cash cards. The US accounted majority of the total remittances sent to the Philippines in 2017. The UAE was ranked as the second largest remittance source for Philippines. Saudi Arabia accounted for a major share of the remittance to Philippines in 2017 and is one of the biggest employers of OFWs.
Domestic Remittance and Bill Payments Market
The market for domestic money transfers in the Philippines is exceedingly dynamic and has been maturing since the past decade. Domestic money transfers encompass both remote money remittances and payment of bills. The choice of the service provider, to a greater degree, has been dependent upon the amount of money being transferred. Bank transfers and major PSPs were mostly used in order to transfer large amounts of money.
In-country Filipinos, characterized by domestic migrants who have moved for better economic and employment opportunities and permanent residents together, accounted for major share of the total domestic remittances. Additionally, majority of the overall domestic remittances was funded by people / families who have also received international remittances from Filipinos in other countries. Domestic remittances were observed to be transferred in top cities amongst the provinces included Quezon City, Manila, Makati, Caloocan, Paranaque, Pasig, Mandaluyong, Taguig, Pasay and Baguio.
Utilities comprised of majority of the total number of bill payments in the Philippines in 2017. The utility bill payments were followed by payments for education which was followed by payment insurance premium.
Convenience stores such as 7-Eleven and Ministop are the major third party payment channels of the total bill payments in the Philippines in 2017. Owing to the greater reach and accessibility; convenience stores have dominated the bill payment landscape in the Philippines over the past many years. Bill payments through mobile and online platforms have displayed a tremendous growth over the past five years with growing mobile wallet and number of online methods offered by banks and other local players. The use of payment centers such as Bayad, along with banks, was mostly prevalent in the urban areas. Conversely, informal service providers were largely used in semi-urban and rural areas.
Competitive Landscape