Philippines Remittance Market Size Worth $1.84 Billion By 2030

The Philippines remittance market size is expected to reach USD 1.84 billion by 2030, growing at a CAGR of 13.3% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growth can be attributed to the initiatives taken by the Philippines government, such as financial literacy programs and the adoption of the 'International Day of Family Remittances'. Furthermore, the increasing adoption of banking services across the country is another major factor expected to create new growth opportunities for the Philippines remittance industry.

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According to the World Bank Group, it is expected that remittances to Low- and Middle-Income Countries (LMICs) will increase by 4.2% in 2022, reaching USD 630 billion. This comes on the heels of a near-record recovery of 8.6% in 2021, thereby expected to drive the growth of the industry. Moreover, the huge number of Overseas Filipino Workers (OFWs) employed in several countries are also contributing to the growth of the market. For instance, according to Philippines Statistics Authority, the total number of OFWs was estimated at 1.77 million from April to September 2020.

Additionally, the Philippines-based remittance service providers are continuously implementing new technologies, such as the integration of blockchain technology in the remittance platform for faster money transfers. For instance, in August 2022, 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.

During the COVID-19 pandemic, the lockdown was imposed, which shifted people's attention towards digital means and technology. However, at the same time, in October 2020, 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 as well as 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.

Philippines Remittance Market Report Highlights

• 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

Key Companies & Market Share Insights
The market can be considered moderately fragmented. The major players are involved in pursuing a variety of strategies, including strategic partnerships & joint ventures, mergers & acquisitions, product innovation, and geographical expansions as part of their efforts to strengthen their market position. The key players are focusing on offering digital and blockchain-based remittance services to the customer, enabling them for faster cross-border transfers. Additionally, other players are focusing on broadening their network to enable customers to send money throughout the Philippines and other countries.

The major players are facing fierce competition in the industry and are implanting several strategies to gain market share. The product development strategies include the integration of blockchain technology for faster remittances. For instance, in July 2022, Qatar National Bank announced the launch of Direct Remittance services for money transfers from Qatar to the Philippines through RippleNet. With the introduction of direct remittance services, the bank enabled its customers to send faster cross-border payments. Some prominent players in the Philippines remittance market include: PayPal Holdings, Inc., Worldremit Group Limited, Union Bank of the Philippines, The Western Union Company, MoneyGram, International, Inc., Cebuana Lhuillier, LBC Express Holdings, MLhuillier, Palawan Pawnshop, RD Pawnshop

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Grand View Research is an India & U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. Grand View Research database is used by the world's renowned academic institutions and Fortune 500 companies to understand the global and regional business environment. Our database features thousands of statistics and in-depth analysis on 46 industries in 25 major countries worldwide.

This release was published on openPR.