The report titled “Philippines Money
Transfer and Bill Payments Market Outlook to 2023 – By Domestic Remittance
Banking and Non Banking (Pawnshops, MTO) Channels, International Remittance
Flow Corridors and Channel; Bill Payment Segment” provides
a comprehensive analysis of domestic, international remittance and bill
payments market in Philippines. The report covers market size, segmentation on
the basis of remittance flow corridors, remittance channel, land-based and
sea-based workers, mode of remittance, major occupation group and distribution
of OFWs by cash remittance sent for international remittance market. For
domestic remittance market, the report covers market size, segmentation on the
basis of remittance channel, type of services and major flow corridors. It also
includes the bill payments market in the country covering the market size and
segmentation by type of bills, mode of payments and channel of payments. The
report also covers government regulations in the market, competitive landscape and
company profiles for major players in the remittance and bill payments market.
The report provides detailed overview on future outlook & projections with
analyst recommendations for the industry.
The
report facilitate the readers with an in-depth analysis of the existing and
future trends, issues and challenges prevalent in the industry and anticipated
growth in the future depending upon changing industry dynamics in coming years.
The report is useful for industry consultants, remittance service providers
(MTOs), banks, local agents, payment platforms, pawnshops and other
stakeholders to align their market centric strategies according to ongoing and
expected trends in the future.
Industry Overview
Philippines
remittance market is led by the international remittances and domestic
remittances which are represented by the OFW remittance inflow, the internal
migrant’s transfers. During 2012-2017, the international and domestic
remittance markets have showcased a remarkable growth. The Overseas Filipino
Workers (OFWs) space has been the most important source of growth in the
Philippines economy. The majority of the OFWs primarily originate from the
Cavite, Laguna, Batangas, Rizal and Quezon (CALABARZON) region, and the
peripheral regions of Central Luzon and Metro Manila. Market growth can be
attributed to factors like increasing number of OFWs, growing infrastructure
and developmental activities, rising business sectors and increasing job
opportunities within the country, surging BPO sector and other related factors.
Market Segmentation
International
Remittance Market
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
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
Domestic remittance market is
dominated by pawnshops and MTO due to the large unbanked or under-banked
population in the Philippines. The enormous potential of domestic remittances
has also engrossed international players such as Western Union into the market.
Conversely, the Philippines-based service providers such as banks, regional and
national pawnshops including Cebuana and M Lhuillier and Palawan Pawnshops, LBC
Express and others have a noteworthy presence in the domestic market and have
provided stiff competition to the international players. Banco de Oro was the
largest bank in the Philippines international remittance market in 2017
followed by The Bank of Philippine Islands while Metropolitan Bank was the
third largest international remittance player in 2017.
Future Potential
The Philippines remittance and bill payments market has
witnessed a considerable growth in past five years. 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. Rapid growth
in the introduction and use mobile technologies in the country for money
transfer and bill payments are also a factor for future growth of domestic
remittance and bill payments market of the Philippines.
The 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. Over the past six
years, the BPO industry in the country has augmented at an average rate of 25%-30%.
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.
Key Topics
Covered in the Report:
·
Ecosystem of Philippines Remittance Market
·
Overview of Philippines Domestic Remittance Market
·
Philippines Domestic Remittance Market Size
·
Philippines Domestic Remittance Market Segmentation
·
Growth Drivers of Philippines Domestic Remittance Market
·
Competitive Landscape of Major Players in Philippines
Domestic and International Remittance Market
·
Philippines Bill Payments Market Size
·
Philippines Bill Payments Market Segmentation
·
Rising Penetration of Mobile Money Transfers
·
Philippines Domestic Remittance and Bill Payments Market
Future Outlook
·
Philippines International Remittance Market Overview
·
Philippines International Remittance Market Size
·
Philippines International Remittance Market Segmentation
·
Trends in Philippines International Remittance Market
·
Philippines International Remittance Market Future Outlook
·
Macroeconomic Factors affecting Philippines Remittance and
Bill Payments Market
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