An increasing number of Filipinos living overseas are opting for digital channels to send money back to the Philippines, primarily to support educational expenses, a Visa report showed on Wednesday, July 24.
The “Money Travels: 2024 Digital Remittances Adoption Report” revealed that 75 percent of Filipinos abroad used digital services this year, up 4 points from 71 percent the previous year.
In an online briefing, Visa Country Manager for the Philippines Jeff Navarro attributed the increase to three factors, namely: convenience, safety, and speed.
The study indicates that approximately 62 percent of Filipino respondents consider digital solutions to be the most secure method for receiving remittances from abroad.
In Asia, India leads in digital remittance preferences with a 76 percent rate, followed by the Philippines, with China and Singapore each at 71 percent.
“They [consumers] want speed and security. They want to receive it most conveniently. And because remittances are hard-earned, they want to ensure that it’s secure,” Navarro said.
“Based on the World Bank survey in 2017 to 2021, if we compare $200 that’s being sent remittance to cash, the average cost is roughly around 6.9 percent of the principle of $200,” he said.
“When you talk about remittance that’s sent to a card which is digital the average cost is only 4.6 percent,” he added.
On the other hand, 58 percent of Filipinos living abroad indicated that they intend to use digital platforms for remitting money to the Philippines in the future, while only 24 percent expressed the same preference for physical remittances.
This year, the Philippines continued to be one of the top recipients of remittances in the Asia Pacific region, representing over 60 percent of all inbound remittance transaction volumes. (TCSP)
