WorldRemit assures easier remittance sending to unbanked Filipinos
MANILA, Philippines — Mobile payment wallets are increasingly providing financial access to unbanked Filipinos who depend on remittances sent by their family members working overseas.
An estimated 47% or nearly half of the 77.2 million Filipino adults do not own a bank account as of the first quarter of 2021, according to the Bangko Sentral ng Pilipinas (BSP).
As Filipinos turn to digital wallets as a financial alternative, leading global payments company WorldRemit also found the Philippines as one of the leading remittance recipients in its in-app money remittance platform.
In a 2021 survey conducted to WorldRemit users based in the United Kingdom, United States and Canada, 18% of users sent money to the Philippines, followed by Nigeria and Ghana at 11% and 10%, respectively.
The digital payment service users said they sent more money abroad amid the pandemic to cover increased medical expenses, daily expenses, utility and education costs for their loved ones back home.
In 2021, OFWs sent a fresh high of $31.4 billion cash remittances, signaling a recovery of the Philippines’ pandemic-stricken economy. This figure rose 5.1% compared to the $29.9 billion worth of remittances in the first year of the pandemic, according to the BSP.
The United States remains the leading source of remittances, central bank data showed, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar and South Korea.
With Overseas Filipino Workers (OFWs) regarded as one of the main contributors to the economy, WorldRemit assured users easier remittance sending through its purely digital and cashless transactions.
“This is crucial as their remittances continue to buoy the Philippine economy on the road to post-pandemic recovery,” the digital payment service said.
A key factor to increased digital remittances is convenience, it said.
OFWs can skip brick-and-mortar retailers as they can opt to send their remittances through the mobile app, only needing a phone number and email address from their loved ones staying in their home country. As the COVID-19 pandemic limited the operating hours of several money remittance centers, OFWs can transfer money any time of the day no longer hindered by time zones.
Ninety-five percent of the app’s transactions are received within minutes, according to World Remit. The company retains a robust network of 25,000 cash pick-up locations nationwide. — Intern, Jan Cuyco
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