This document provides an overview and outlook of the domestic and international money transfer industry in the Philippines from 2011 to 2021. It finds that the growing number of overseas Filipino workers and technological advancements will aid market growth. The domestic remittance market size grew from $2.2 billion in 2011 to $3.1 billion in 2016, while the international remittance market grew from $20.6 billion to $26.9 billion over the same period. Major players include Western Union, Palawan Pawnshop, and Cebuana Lhuillier. The report projects continued growth in both domestic and international money transfer markets in the Philippines through 2021.

1. Philippines Domestic and
International Money Transfer
Industry Outlook to 2021
Growing Number of Overseas Filipino Workers and Technological
Advancement to Aid Market Growth
COMPANIES
MENTIONED
• Domestic Money Transfer
• International Money Transfer
• Bill Payments
Palawan Pawnshop, Western Union,
Cebuana Lhuillier, Money Gram, M
Lhuillier, LBC Express, Pinoy Express,
iRemit, Wells Fargo, Banco de Oro, The
Bank of Philippine Islands, Philippine
National Bank, Metropolitan Bank, Xoom
PRODUCTS MENTIONED
June 2017

2. TableofContent 1. Executive Summary
Macro Environment in Contact with Remittance Industry Performance
Domestic Remittance Market
Domestic Bill Payment Market
International Remittance Market
2. Philippines Domestic Money Transfer Market
2.1. Philippines Domestic Remittance and Bill Payment Introduction
Overview
Remote Money Transfers and Bill Payments
Players in the Domestic Remittance Market
Role of Payment Service Providers
2.2. Philippines Domestic Remittance Market Size, 2011-2016
2.3. Philippines Domestic Remittance Market Segmentation, 2016
2.3.1. By Major Remittance Channels: Bank vs. Non-Bank, 2016
2.3.2. By Types of Services (Door to Door, Online, Branch Pick-Up, Prepaid Cards and
Direct Credit to Bank Account), 2012-2016
2.3.3. By Major Flow Corridors, 2016
Migration to Manila
Major Reasons for Migration
Remittance Recipient Regions
2.4. Growth Drivers of Philippines Domestic Remittance Market
Decline in Unbanked Municipalities
Decline In the Number of Pawnshops, 2011-2016
Surge in BPO Employees in the Philippines, 2011-2016
Infrastructural Development
Higher Remittance During Festival Months
Robust Growth in the Tech Industry
2.5. Competitive Landscape of Major Players in Philippines Domestic Remittance Market
2.5.1. Market Share of Major Players in Philippines Domestic Remittance Market, 2016
2.5.2. Strengths and Weaknesses of Major Non-Bank Domestic Remittance Players
2.5.3. Service Positioning, Strategy and Key Performance Indicators
2.5.3.1. Palawan Pawnshop
2.5.3.2. Cebuana Lhuilier
2.5.3.3. LBC Express
2.5.3.4. Western Union
2.5.3.5. M Lhuilier
2.6. Philippines Bill Payment Market Size, 2011-2016
2.6.1. Philippines Domestic Bill Payment Market Segmentation, 2016
2.6.2. Market Share of Major Domestic Bill Payment Service Providers, 2016
Transaction Fees Comparison
2.7. Remittance Cost and Regulatory Changes (Domestic and International Remittance)
Transaction Fees
Decreasing Remittance Costs
Regulations on Cost of Remittance

3. TableofContent Regulatory Acts and Laws
2.8. Rising Penetration of Mobile Money Transfers
2.8.1. Introduction
2.8.2. Mobile Money Transfer
Mobile Money Transfer Platforms
Benefits of Mobile Money Transfer
2.8.3. Near Field Communication (NFC)
2.8.4. Mobile POS
2.9. Barriers to Entry and Relative Comparison of Bank and Non-Bank Remittance Players
(security and compliance issues)
2.10. Philippines Domestic Remittance and Bill Payment Future Projections and Outlook,
2015-2019
2.11. Analyst Recommendations
Recommendations for Banks
3. Philippines International Remittance Market
3.1. Global and Philippines International Remittance Industry Introduction
Overview – Global and Philippines Remittance Flows
Remittance Inflow and Philippines Economy
Players in International Remittance Market
3.2. Remittance Working Model
3.3. Products and Services in Bank and Non-Bank Channels
Overview
Special Banking Products and Services for OFWs
Remittance Products from Thrift or Savings Banks
Unbanked Recipients
Interlink Between Banks and Money Transfer Companies
3.4. Philippines International Remittance Market Size, 2011-2016
3.5. Philippines International Remittance Market Segmentation, 2011-2016
3.5.1. Major Flow Corridors, 2011-2016
3.5.2. Average Remittance Transaction per OFW on the Basis of Place of Work, 2013 -
2015
3.5.3. Average Remittance Transaction per OFW on the Basis of Major Occupation Group,
2013 - 2015
3.5.4. Average Remittance Transaction per OFW on the Basis of Mode of Remittance,
2013 - 2015
Agencies/ Local Offices, Banks, Door to Door, Friends/Co-Workers and others
3.5.5. Distribution of OFWs by Cash Remittance Sent, 2013 - 2015
3.6. Trends in Philippines International Remittance Market
Stable Growth in Philippines Remittance Inflow Wherein Global Remittance Declined
Seasonal Remittance Patterns
Digital Trends in International Remittance
Rate of Unbanked Population
Adaptation of Latest Technologies
3.7. Competitive Landscape of Major Players in Philippines International Remittance
3.7.1. Market Share of Major Banks and Non-Bank Channels, 2016
3.7.2. Strengths and Weaknesses of Banks and Major Non-Bank International Remittance
Players
3.7.3. Service Positioning, Pricing Strategy and Key Performance Indicators

4. TableofContent 3.7.3.1. Banco De Oro
3.7.3.2. The Bank Of The Philippine Islands
3.7.3.3. Philippine National Bank
3.7.3.4. Western Union
3.7.3.5. Metro Bank
3.7.3.6. MoneyGram
3.7.3.7. iRemit
3.7.3.8. WELLSFARGO
3.7.3.9. Xoom
3.8. Philippines International Remittance Market Future Outlook and Projections, 2017-
2021
3.9. Cause and Effect Relationship in Philippines International Remittance Market
4. Macro Economic Factors Affecting Philippines Remittance Market
4.1. Gross Domestic Product of Philippines, 2011-2021
4.2. Population and Number of Households in Philippines, 2011-2021
4.3. Trade Scenario and Exchange Rate Fluctuations in Philippines, 2011-2016
4.4. Disposable Income per Household in Philippines, 2011-2021
4.5. Overseas Filipino Workers, 2010-2015
4.5.1. Number of Land-Based and Sea-Based OFWs, 2010-2015
4.5.2. Land-Based OFW Distribution Across Countries And By Occupation, 2010-2015
4.5.3. Demand For Money Transfer
4.6. Number of Bank Branches and ATMs in Philippines, 2011-2016
5. Research Methodology
5.1. Market Definitions
5.2. Abbreviations
5.3. Market Size and Modeling
Approach – Market Sizing
Variables (Dependent and Independent)
Final Conclusion
Disclaimer
Contact Us

5. LISTOFFIGURES Figure 2-1: Philippines Domestic Remittance Market Size on the Basis of Transaction Volume
in USD Million, 2011-2016
Figure 2-2: Philippines Domestic Remittance Market Segmentation on the Basis of Number of
Transactions from Banking Channel and Non-Banking Channel in Percentage,
2016
Figure 2-3: Philippines Domestic Remittance Market Segmentation on the Basis of Types
of Services Available along with their Contribution on the Basis of Number of
Transactions in Percentage, 2012-2016
Figure 2-4: Migration Trend in the Philippines in 2010 and Estimates for 2012, 2014 and
2016
Figure 2-5: Number of Pawnshops in the Philippines, 2011-2016
Figure 2-6: Number of BPO Employees in the Philippines in Thousand, 2011-2016
Figure 2-7: Philippines Domestic Bill Payment Market Size on the Basis of Transaction Volume
in USD Million and Number of Transactions in Million, 2011-2016
Figure 2-8: Philippines Bill Payment Market Segmentation by Types of Payment on the Basis
of Number of Transactions in Percentage, 2016
Figure 2-9: Market Share of Bill Payments Service Providers in the Philippines on the Basis of
Number of Transactions in Percentage, 2016
Figure 2-10: Process of Sending Domestic M-Remittances through Cash-in/Cash-out in the
Philippines
Figure 2-11: Process of Sending Domestic M-Remittances through Mobile Phones in the
Philippines
Figure 2-12: The Philippines Domestic Remittance and Bill Payment Future Projections on the
Basis of Transaction Volume in USD Million, 2017-2021
Figure 3-1: Global Remittance Market Size on the Basis of Transaction Volume in USD Billion
and the Contribution of the Philippines in Percentage, 2011-2016
Figure 3-2: Remittance Working Model
Figure 3-3: Philippines International Remittance Market Size on the Basis of Transaction
Volume in USD Million, 2011-2016
Figure 3-4: Philippines International Remittance Market Future Projections on the Basis of
Transaction Volume in USD Million, 2017-2021
Figure 4-1: Gross Domestic Product of Philippines in USD Billion, 2011-2021
Figure 4-2: Population and Number of Households in the Philippines in Million, 2011-2021
Figure 4-3: Philippines Trade Scenario by Exports and Imports on the Basis of Value in USD
Billion, 2011-2016
Figure 4-4: Exchange Rate of the Philippine Peso against US Dollar, 2011-2016
Figure 4-5: Disposable Income per Households in Philippines, 2011-2021
Figure 4-6: Number of Deployed Overseas Filipino Workers in Million, 2010-2015
Figure 4-7: Number of Bank Branches in Philippines, 2011-2016
Figure 4-8: Number of ATMs in Philippines, 2011-2016

6. LISTOFTABLES Table 2-1: Rationale and Description for Philippines Domestic Remittance Market Size, 2011-
2016
Table 2-2: Philippines Domestic Remittance Market Size on the Basis of Total Number of
Transactions in Million, 2014-2016
Table 2-3: Rationale and Description for Philippines Remittance Market Segmentation by
Major Remittance Channel, 2016
Table 2-4: Philippines Domestic Remittance Market Segmentation on the Basis of Number of
Transactions from Banking Channel and Non-Banking Channel in Million, 2016
Table 2-5: Rationale and Description for Philippines Remittance Market Segmentation by
Type of Services, 2012-2016
Table 2-6: Philippines Domestic Remittance Market Segmentation on the Basis of Types
of Services Available along with their Contribution on the Basis of Number of
Transactions in Million, 2012-2016
Table 2-7: Unemployment and Underemployment Rate in Different Region in the Philippines
in Percentage, 2016
Table 2-8: Region Wise Urbanization Rate in the Philippines in Percentage for 2010, 2012,
2014 and 2016
Table 2-9: Number of Banked and Un-Banked Municipalities in Philippines, 2011-2016
Table 2-10: Number of Banked and Un-Banked Municipalities in Philippines on the Basis of
Percentage, 2011-2016
Table 2-11: Major Festivals in the Philippines
Table 2-12: Major Players in Philippines Domestic Remittance Market
Table 2-13: Market Share and Transaction Volume of Major Players in the Philippines
Domestic Remittance Market in Percentage and USD Million Respectively, 2016
Table 2-14: Strengths and Weaknesses of Major Non-Bank Players in the Philippines Domestic
Remittance Market
Table 2-15: Competitive Landscape for Palawan Pawnshop Company Overview, Services,
Branches and Other Parameters
Table 2-16: Palawan Pawnshop’s Rates for Domestic Remittance in the Philippines, 2016
Table 2-17: Competitive Landscape for Cebuana Lhuilier Company Overview, Services,
Branches and Other Parameters
Table 2-18: Cebuana Lhuilier Rates for Domestic Remittance in the Philippines, 2016
Table 2-19: Competitive Landscape for LBC Express Company Overview, Services, Branches
and Other Parameters
Table 2-20: LBC Express’ Rates for Domestic Remittance (Same Day Delivery) in the Philippines,
2016
Table 2-21: LBC Express’ Rates for Domestic Remittance (Next Day Delivery) in the Philippines,
2016
Table 2-22: Competitive Landscape for Western Union Company Overview, Services,
Branches and Other Parameters
Table 2-23: Western Union’s Rates for Domestic Remittance in the Philippines, 2016
Table 2-24: Competitive Landscape for M Lhuilier Company Overview, Services, Branches
and Other Parameters

7. LISTOFTABLES Table 2-25: M Lhuilier Rates for Domestic Remittance in the Philippines, 2016
Table 2-26: Rationale and Description for Philippines Bill Payments Market Size, 2011-2016
Table 2-27: Domestic Bill Payment Market Size in the Philippines in USD Million, 2016
Table 2-28: Major Entities Involved in Philippines Bill Payments Market
Table 2-29: Competitive Landscape of Smart Money
Table 2-30: Competitive Landscape of Smart Money
Table 2-31: Overview of Online and Mobile Payment Gateways and Payment Methods in the
Philippine Bill Payments Market
Table 2-32: Barriers to Entry and Relative Comparison of Bank and Non-Bank Remittance
Players
Table 2-33: Relative Comparison of Banking and Non-Banking Remittance Channels
Table 2-34: Future Outlook for Philippines Domestic Remittance and Bill Payments Market on
the Basis of Revenue, 2017-2021
Table 2-35: Analyst Recommendations for Money Transfer Companies and Pawnshops
Table 2-36: Analyst Recommendations for Banks
Table 3-1: Rationale and Description for Philippines International Remittance Market Size,
2011-2016
Table 3-2: Rationale and Description for Philippines International Remittance Market
Segmentation by Major Flow Corridors, 2016
Table 3-3: Philippines International Remittance Market Segmentation by Inflows from Major
Flow Corridors on the Basis of Transaction Volume in Percentage, 2011-2016
Table 3-4: Philippines International Remittance Market Segmentation on the basis of Inflows
from Major Flow Corridors in USD Million, 2011-2016
Table 3-5: Average Stated Transaction Fee, Hidden Currency Conversion Cost and Total Fees
Charged for Remittance of USD 1,000 for the US-Philippines Flow Corridor in
USD, 2016
Table 3-6: Average Stated Transaction Fee, Hidden Currency Conversion Cost and Total Fees
Charged for Remittance of GBP 1,000 (USD 1,355.9) for the UK-Philippines Flow
Corridor in USD, 2016
Table 3-7: Average Stated Transaction Fee, Hidden Currency Conversion Cost and Total Fees
Charged for Remittance of CAD 1,000 (USD 755.03) for the Canada-Philippines
Flow Corridor in USD, 2016
Table 3-8: Average Stated Transaction Fee, Hidden Currency Conversion Cost and Total Fees
Charged for Remittance of EUR 1,000 (USD 1,106.8) for the Western Europe-
Philippines Flow Corridor (Germany, France, Italy and Others) in USD, 2016
Table 3-9: Average Stated Transaction Fee, Hidden Currency Conversion Cost and Total Fees
Charged for Remittance of AUD 1,000 (USD 743.7) for the Australia-Philippines
Flow Corridor in USD, 2016
Table 3-10: Average Cash Remittance per Male and Female Overseas Filipino Worker on the
Basis of Place of Work in PHP Thousands, 2013 - 2015
Table 3-11: Rationale and Description for Philippines International Remittance Market
Segmentation – Average Remittance Transaction per OFW by Major Occupation
Group, 2016

8. LISTOFTABLES Table 3-12: Average Annual Cash Remittance per Male and Female Overseas Filipino Worker
on the Basis of Major Occupation Group in PHP Thousands, 2013 - 2015
Table 3-13: Average Cash Remittance per Overseas Filipino Worker on the Basis of Mode of
Remittance in PHP Thousands, 2013-2015
Table 3-14: Distribution of Overseas Filipino Workers by Amount of Cash Remittances Sent
in Units and Percentage, 2013-2015
Table 3-15: Distribution of Overseas Filipino Workers by Amount of Cash Remittances Sent
on the Basis of Percentage of Cash Remittance Set Aside for Savings, 2015
Table 3-16: Distribution of Overseas Filipino Workers by Amount of Cash Remittances Sent
on the Basis of Percentage of Cash Remittance Set Aside for Savings, 2014
Table 3-17: Distribution of Overseas Filipino Workers by Amount of Cash Remittances Sent
on the Basis of Percentage of Cash Remittance Set Aside for Savings, 2013
Table 3-18: Month-wise Overseas Filipino Remittances in the Philippines in USD Million,
2011 - 2016
Table 3-19: Major Players in Philippines International Remittance Market
Table 3-20: Market Share and Transaction Volume of Major Players in the Philippines
International Remittance Market in Percentage and USD Million Respectively,
2016
Table 3-21: LBC Express International Remittance Transaction Volume in USD Million, 2011-
2016
Table 3-22: Strengths and Weaknesses of Banks and Major Non-Bank International
Remittance Companies
Table 3-23: Competitive Landscape for Banco De Oro Company Overview, Services,
Branches and Other Parameters
Table 3-24: Competitive Landscape for the Bank of the Philippine Islands Company Overview,
Services, Branches and Other Parameters
Table 3-25: Competitive Landscape for Philippine National Bank Company Overview,
Services, Branches and Other Parameters
Table 3-26: Competitive Landscape for Western Union Company Overview, Services,
Branches and Other Parameters
Table 3-27: Competitive Landscape for Metro Bank Company Overview, Services, Branches
and Other Parameters
Table 3-28: Competitive Landscape for MoneyGram Company Overview, Services, Branches
and Other Parameters
Table 3-29: Competitive Landscape for iRemit Company Overview, Services, Branches and
Other Parameters
Table 3-30: Competitive Landscape for Wells Fargo Company Overview, Services, Branches
and Other Parameters
Table 3-31: Competitive Landscape for Xoom Company Overview, Services, Branches and
Other Parameters
Table 3-32: Future Outlook for Philippines International Remittance Market on the Basis of
Transaction Value, 2017-2021
Table 3-33: Cause and Effect Relationship Analysis between Industry Factors and Expected
Industry Prospects of the Philippines International Remittance Market

9. LISTOFTABLES Table 4-1: Rationale for Gross Domestic Product of Philippines, 2011 - 2021
Table 4-2: Rationale for Population and Number of Households in Philippines, 2011 - 2021
Table 4-3: Rationale for Trade Scenario and Exchange Rate Fluctuations in Philippines, 2011
- 2021
Table 4-4: Rationale for Disposable Income per Household in Philippines, 2011 - 2021
Table 4-5: Philippines Household Final Consumption Expenditure at Constant Prices in USD
Million, 2011-2016
Table 4-6: Rationale for Number of Land-based and Sea-based OFWs in Philippines, 2010
- 2015
Table 4-7: Number of Land based and Sea based OFWs from Philippines, 2010-2015
Table 4-8: Rationale for Number of Land-based and Sea-based OFWs in Philippines, 2010
- 2015
Table 4-9: Deployed Land-Based Overseas Filipino Workers on the Basis of Country of
Residence, 2010-2015
Table 4-10: Rationale for Number of Bank Branches and ATMs in Philippines, 2011 - 2016
Table 5-1: Correlation Matrix of Philippines Remittance and Bill Payments Market
Table 5-2: Regression Coefficients Output for Philippines Remittance and Bill Payments Market

10. 10
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market
WHAT IS THE SCENARIO OF REMITTANCES IN THE PHILIPPINES?
Philippines has been one of the fastest
growing economies in the ASEAN
regions during the past five years.
With an improvement in economy
which has been facilitated by an
increase in trade, the country plans
to achieve more than 6% GDP growth
rate in the coming years.
The market for domestic money
transfers in the Philippines has
been exceedingly dynamic and has
matured since the last five years.
Filipinos have a gamut of alternatives
available in terms of the presence of
numerous formal payments service
providers (PSP) in a market with high
competition. The market has also
been flooded with informal means
of making payments which include
friends, family and vehicle drivers.
The total market for domestic
remittances was valued at USD
~ million in 2016 and witnessed
expansion from USD ~ in the year
2011.
Remittances sent by cross border
migrant workers are a traditional
means of financial support to family
members back home.
The Philippines has been the nation
of source of one of the biggest Asian
migrant Diasporas, with its economy
greatly reliant on billion-dollar
remittances from Filipinos residing
and working in around 239 countries
and territories. The Philippines was
the third largest remittance market
in 2016, with India and China being
the top two. Personal remittances
from OFWs accounted for ~% of the
country’s GDP in 2016.
The largest portion of remittances
came from land-based workers, who
remitted USD ~ million in 2016. On
the other hand, remittances from
sea-based workers in the same year
amounted to USD ~ million.
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Figure: Philippines International Remittance Market Size on the Basis of Transaction
Volume in USD million, 2011-2016

11. 11
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market
PHILIPPINES DOMESTIC REMITTANCE AND
BILL PAYMENTS MARKET
PHILIPPINES INTERNATIONAL REMITTANCE
MARKET
Domestic money transfers encompass both remote
money remittances and payment of bills. A remote
money remittance is termed as the transmission of funds
from one person to another through either an agent,
or through individual-to-individual transfers from one
bank account or e-wallet to another. The total market
for domestic remittances was valued at USD ~ million
in 2016 with around ~ million transactions. In-country
Filipinos, characterized by domestic migrants who
have moved for better economic and employment
opportunities and permanent residents together,
accounted for approximately ~% of the total domestic
remittances. The increase in local migration over the
years has been favorable to the growth of domestic
money transfers.
The bill payment market in the Philippines was recorded
to be USD ~ million, in terms of volume of transactions
taking place in 2016. Payments of utility bills such as
electricity, telephone and water bills dominated the bill
payment landscape in the same year. A greater part
of bill payments took place through the non-banking
channel, of which convenience stores were the most
preferred location for making payments. The amount
and frequency of bills payments for utilities has been
considerably high in the country, largely because the
high cost of electricity and water provision to an average
Filipino
Remittances sent by cross border migrant workers are a
traditional means of financial support to family members
back home. Over the past several years, as the number
of migrant workers have increased, remittance flows
have also showcased an upward trend.
ThePhilippinesinternationalremittancemarketregistered
a total of USD ~ million in inbound remittances from
other countries in 2016. The total remittances from OFWs
accounted for ~% of the country’s overall economic
output in 2016. The largest portion of remittances came
from land-based workers, who remitted USD ~ million
in 2016. On the other hand, remittances from sea-based
workers in the same year amounted to USD ~ million.
A momentous proportion of remittances were received
from the US, followed by Saudi Arabia and UAE. Even
though the US has not been amongst the leading
destinations for Filipinos, it has continued to dominate
the remittance inflows in the Philippines over the past
five years. OFWs which worked as government officials
were observed to remit the highest during the year 2016
in comparison to other professions such as technicians,
clerks, farmers and others. Officials of the government
and corporate executives remitted average of amounts
of PHP ~ thousand and PHP ~ thousand for males
and females respectively during the complete year of
2016. Few of the most popular modes of money transfer
include private agencies, banks, door to door service
providers and friends/ co-workers. Cash remittance
agencies have been one of the most popular modes of
transactions.
Figure: UAE Genset Market Future Outlook and Projections
on the basis of Revenue in USD Million, 2017-2021
USDMillion
2016 2017 2018 2019 2020 2021

12. 12
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market
WHICH CHANNEL DOMINATES THE
DOMESTIC REMITTANCE MARKET?
WHICH ARE THE MAJOR FLOW CORRIDORS
IN PHILIPPINES INTERNATIONAL REMITTANCE
MARKET?
The non-bank channel, comprising of money transfer
companies and pawnshops operating in the Philippines,
accounted for the major share in domestic remittance
market in 2016, in terms of number of transactions with
a share of ~%. Banks hold a meager share of ~% in
the market. Lack of banking offices in several regions
in Philippines has led to the emergence and growth of
several other financial service providers (FSPs) such as
pawnshops, money changers (MCs), money transfer
companies, remittance agents (RAs) and FX dealers.
These entities have greatly helped to increase the access
to financial services in un-served and underserved
regions in the Philippines. The lower income class
of the Filipino society has been significantly served
by the pawnshops for their remittance requirements
since this cluster constituted the unbanked members
of the population. Majority of the banks in the country
are concentrated in NCR, CALABARZON and Central
Luzon, leaving regions such as ARMM, Eastern Visayas,
Caraga and SOCCSKSARGEN with a substantially low
prevalence of banks.
Philippines ranked as the third largest recipient of
remittances worldwide in 2016 after India and China,
followed by France, Germany, Bangladesh, Belgium,
Spain, and Nigeria. The Philippines received remittances
from all over the globe. However, a momentous
proportion of remittances were received from the US,
followed by Saudi Arabia and UAE. Even though the
US has not been amongst the leading destinations for
Filipinos, it has continued to dominate the remittance
inflows in the Philippines over the past five years.
Filipinos have been recorded as the second largest
immigrant group in the US, with the category being led
by Mexican immigrants. Saudi Arabia was observed as
the biggest employer of Overseas Filipino Workers. The
country has the largest Filipino population in the Middle
East. Filipinos account for the fourth largest group
of expatriates in Saudi Arabia. Filipinos in the UAE
mostly constituted migrant Overseas Filipino Workers
working in the marketing, construction, energy, retail,
architecture, information technology, cargo shipping,
medical, tourism, design engineering, real estate and
telecommunications domains or employed as domestic
helpers.Table: Philippines Domestic Remittance Market
Segmentation by Remittance Channel on the Basis of
Number of Transactions in Percentage (%), 2016
Segments Percentage (%)
Non-Bank ~
Bank ~
Table: Philippines International Remittance Market
Segmentation by Major Flow Corridors on the Basis of
Transaction Volume in Percentage (%), 2016
Countries Percentage (%)
US ~
Saudi Arabia ~
UAE ~
UK ~
Others ~

13. 1. The reach of the financial system in the Philippines has been a direct measure of the distribution of financial
institutions in the country. Banks were noticed as the primary players in financial services with banking entities
directly responsible for approximately 80% of the total resources of the financial system. Bank branches and
ATMs have functioned as the fundamental distribution channels of financial services. The Philippines has been
regarded as a thought leader of financial inclusion in the light of its early initiatives and gains in microfinance
and mobile banking services.
2. A pawn shop has been categorized as a business which provides services of money lending with collection
of certain collateral property. Pawnshops in the Philippines have been a major source of money transferring
since the past decade. The lower income class of the Filipino society has been significantly served by the
pawnshops for their remittance requirements since this cluster constituted the unbanked members of the
population.
3. The Business Process Outsourcing industry has been an important component of Philippines’ economic
growth. The Information Technology and Business Process Management industry has grown to be the
second largest source of dollar income for the Philippine economy. During 2016, the industry generated
~ million direct jobs and USD ~ billion in revenues. The revenues grew by ~% from ~ million in 2014
and are expected to overtake the overseas Filipino Worker Remittances by 2017.
4. The government of Philippines has taken concrete steps to bolster infrastructural development in the
country.
5. Remittances to developing countries are experiencing a declining trend from the last two years.
However, Philippines stood as one among those countries that defied the declining trend and
continued to show a decent growth rate. Remittances to the East Asia and Pacific region declined
an estimated ~% to USD ~ billion in 2016 amid low oil prices and weak economic growth in the
Gulf Cooperation Council (GCC) countries and the Russian Federation.
6. International remittances showcased strong seasonal patterns, with month on month increases
particularly huge in the months of March and December. March is the month for graduation
in the Philippines and remittances have showcased significant incline in this month over the
past five years.
7. Major digital trends that are expected to revolutionize the mobile financial services in the
country are virtual currencies, wearable technologies and biometrics. The bitcoin is expected
to have a large impact on the global remittance market, particularly in developing countries
such as the Philippines where remittances help support families and communities.
8. New players and startups are offering different forms of money transfer services. With
the advent of digital currency and blockchain technology, companies are becoming
adaptable for currencies like bitcoin to enable remittance services.
WHAT HAVE BEEN THE MAJOR TRENDS AND CHALLENGES IN PHILIPPINES REMITTANCE
AND BILL PAYMNETS MARKET?
13
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market

14. HOW THE COMPETITION IS PREVAILING
IN PHILIPPINES DOMESTIC REMITTANCE
MARKET
HOW THE COMPETITION IS PREVAILING IN
PHILIPPINES INTERNATIONAL REMITTANCE
MARKET
The domestic remittance space in Philippines has
largely been a cash-to-cash market, with the money
flowing from several informal modes of payment such
as friends, family, drivers and others. As majority of the
population in the Philippines has continued to remain
un-banked, coupled with the fact that cash-to-cash mode
of payment is not fitting to banks’ transaction services,
regulatory and compliance structure, a large portion of
the country’s inhabitants continue to resort to exchange
of hard cash. In addition to the prevalence of informal
remittance modes in the Philippines, a gamut of formal
payment methods are also common. Pawnshops have
been an important part of Philippines’ financial sector,
surpassing banks in terms of physical reach. There were
a total of ~ pawnshops in the Philippines in 2016, of
which approximately ~ were entirely in the pawning
business, while the remaining had other revenue
generating operations, chiefly remittance services.
Comparing to other financial institutions, pawnshops
outnumbered savings and loans associations, universal
and commercial banks, and rural banks. Palawan
Pawnshop, Cebuana Lhuillier and M Lhuillier are three
of the largest pawnshop businesses in the Philippines,
offering a variety of money transfer services.
Thecontinuedexpansionofremittancesinthepastseveral
years has been impelled by the sustained innovation on
the part of banks, money transfer companies and other
financial institutions which provide remittance services
to overseas Filipino workers. Majority of the money
remittances received by Filipino households are routed
through commercial banks. In 2016, banks absorbed
~% of the total remittances, indicating Filipinos’
mounting faith on this channel instead of sending money
back home by means of friends or relatives. Remittances
transferred through banks have showcased an inclining
participation over the last five years. On the other
hand, money transfer companies such as I-Remit, LBC
Express, Western Union, Xoom and MoneyGram were
also important remittance channels for OFWs in the
Philippines, recording a contribution of ~% to the total
international remittance transaction volume in 2016.
Table: Market Share of Major Players in the Domestic
Remittance Market in %
Companies Market Share (%)
Palawan pawnshop ~
LBC Express ~
Cebuana Lhuillier ~
Western Union ~
M Lhuillier ~
Pinoy Express ~
iRemit ~
Banks ~
Table: Market Share of Major Players in the International
Remittance Market in %
Companies Market Share (%)
Banco de Oro ~
The Bank of Philippine
Islands
~
Philippine National Bank ~
Metropolitan Bank ~
Wells Fargo ~
Western Union ~
iRemit ~
MoneyGram ~
Xoom ~
LBC Express ~
14
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market

15. WHAT IS THE FUTURE OUTLOOK FOR PHILIPPINES INTERNATIONAL REMITTANCE MARKET
The domestic remittance market is expected to augment
at a CAGR of ~% from USD ~ million in 2016 to USD
~ million in 2021. Rapid growth in the introduction
and use mobile technologies in the country for money
transfer and bill payments are a factor that depicts
the growth of domestic remittance and bill payments
market of the Philippines. 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. 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. This
and the continued zeal of domestic Filipinos to send
money to their families will provide a major thrust to the
domestic remittance market.
The bill payments market is expected to grow at a CAGR
of ~% during the forecast period 2017-2021. One of
the major factors that are expected to augment the bill
payment factor is the mobile phone penetration in the
country. Internet subscriptions in the Philippines have
grown considerably and now cover more than one-
third of the country’s total population. The increase in
the number of water connections, and mobile, internet
and cable TV subscribers, is likely to result in a healthy
demand for bill payment services in the Philippines. The
expansion of payment centers to the semi-urban and
rural setting will also see the number of bill payment
transactions increasing in the coming years.
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. Even
though the demand of OFWs will be high from countries
in the Middle East, the US will continue to account for the
highest amount of remittances in the coming years, as the
amount of money sent is likely to be higher compared to
other nations. The unaccounted remittances to an extent
would be properly channeled and is expected to raise
the transaction volume in the coming years. Moreover,
the average amount remitted to Philippines per person
is expected to increase as the Filipinos are gradually
getting enrolled into jobs that require professional skills
and qualifications owing to their year on year improving
educational qualifications and such jobs are paid better.
Increased earnings of OFWs would raise the amount of
remittance.
15
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market
USDMillion
Figure: Philippines Remittance and Bill Payments Market
Future Projections on the Basis of Transaction Volume in
USD Million, 2017-2021
2017 2018 2019 2020 2021

16. 16
© Licensed product of Ken Research; should not be copied
Philippines Remittance Market
Companies Covered in the Report List of Companies
Major Players in Philippines
Remittance and Bill Payments
Market
• Palawan Pawnshop
• Cebuana Lhuillier
• LBC Express
• Western Union
• M Lhuillier
• Banco De Oro
• The Bank of the Philippine Islands
• Philippine National Bank
• Metro Bank
• MoneyGram
• iRemit
• Wells Fargo
• Xoom
Parameters Description
Company Overview •
Strategy •
Services •
Key Performance Indicators •
Number of branches, 2016 •
COMPANIES CITED IN THE REPORT
COMPETITIVE LANDSCAPE COVERED IN THE REPORT
KEY FACTORS CONSIDERED IN THE REPORT
• Comprehensive analysis of Philippines Domestic and International Remittance and Bill
Payments Market and its segments
• Listed major players and their positioning in the market
• Identified major industry trends in last few years and assessed the future growth of the industry
• Technological Advancements in Philippines Remittance and Bill Payments Market

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