Cross-border digital remittances to PH are on the rise – Manila Bulletin
Digital payments continue to be adopted more and more in the Philippines as the country continues to fight the COVID-19 pandemic.
Recently, the governor of Bangko Sentral ng Pilipinas (BSP), Benjamin Diokno, reported at a press conference that the national retail payment system had exceeded its target of increasing the percentage of digital payments by 2020 to 20.1%, compared to 14.1% in 2019.
The BSP also reported earlier this year that digital payments in the country had increased 5,000% during the pandemic alone.
To support digital payment adoption in the Philippines, BSP has developed its Digital Payments Transformation Roadmap, which aims to digitize half of all financial transactions by 2023.
One of the PASB initiatives in the roadmap is to strengthen âinterconnectivity, interoperability and financial integrationâ between national and cross-border digital payments. An industry that was available and used long before the pandemic, this shift in focus will continue to facilitate quick and reliable access to funds around the world for Filipinos.
Growth of digital remittances abroad
The COVID-19 pandemic has caused widespread disruption to the lives of Filipinos not only here, but also those living abroad. As people try to limit their travel for security reasons, more and more people have realized the convenience and reliability of digital transfer and payment platforms.
WorldRemit Country Director for the Philippines Earl Melivo believes the upward trend in digital adoption will continue in domestic and cross-border transactions.
Melivo said, âRemittances are an important component of the Philippine economy. It quickly became a digital affair for many [and a still increasing number of] Overseas Filipinos who send money home – both for those looking for a faster way to send money to loved ones, and as a new user forced to make the switch because COVID-19, who have since realized the value of digital transactions. Sending money online simply saves them time, giving them more control and transparency over the transaction, and making each transaction much more convenient for both the sender and the recipient. As more Filipinos adapt to the use of mobile wallets, the push of local banks to a larger depositor base, and the granting of multiple digital banking licenses in the Philippines, we are already seeing volumes increased and sustained to these channels compared to the usual cash payments â.
McKinsey’s 2020 Global Payments Report noted that cross-border payments, or financial transactions between people or businesses in different countries, accounted for $ 2 trillion (USD) in payments revenue in 2019 alone.
While the value of cross-border cash flow has been affected by the pandemic, digital adoption for remittances has continued to grow according to WorldRemit.
âWe are seeing greater adoption of digital money transfer services by both senders and their recipients all over the world, including in the Philippines. Recipients continue to transition to digital receiving methods, particularly remittances to bank accounts and mobile wallet services, âcommented Melivo.
Benefits of digital payments
With the continued globalization of the economy and the rise of e-commerce, cross-border digital payments are becoming even more relevant to everyday consumers.
Providers like WorldRemit allow anyone to send money overseas quickly and securely from their devices without having to queue at a physical transfer center, and 95% of recipients often receive the full amount. in a few minutes.
âWorldRemit provides reliability and affordability to senders and receivers in over 130 countries at competitive exchange rates. Our customers can also be confident that their money and personal information remains safe thanks to our strict verification processes and digital security protocols, âsaid Melivo.
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