Philippines Money Transfer and Bill Payments Market Report 2018: Over the Past Six Years, the BPO Industry in the Country has Augmented at an Average Rate of 25%-30%

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Nov 07, 2018, 15:30 ET

DUBLIN, Nov. 7, 2018 /PRNewswire/ --

The "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" report has been added to ResearchAndMarkets.com's offering.

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.

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

The market for domestic money transfers in the Philippines is exceedingly dynamic and has been maturing since the past decade. Domestic money transfers encompass both remote money remittances and payment of bills. The choice of the service provider, to a greater degree, has been dependent upon the amount of money being transferred. Bank transfers and major PSPs were mostly used in order to transfer large amounts of money.

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:

1. Executive Summary

Macro Environment in Contact with Remittance Industry Performance
Domestic Remittance Market
Domestic Bill Payment Market
International Remittance Market

2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling

Approach - Market Sizing
Market Sizing Approach-International Remittance
Market Sizing Approach-Domestic Remittance
Market Sizing - Bill Payments Market
Variables (Dependent and Independent)
Final Conclusion

3. Philippines Remittance and Bill Payments Market Ecosystem

4. Philippines Domestic Remittance and Bill Payments Market
4.1. Overview and Current Dynamics

Overview
Remote Money Transfers and Bill Payments
Players in the Domestic Remittance Market
Role of Payment Service Providers
Working Model of Domestic Remittance Market

4.2. Philippines Domestic Remittance Market Size, 2012-2017
4.3. Philippines Domestic Remittance Market Segmentation, 2017
4.3.1. By Major Remittance Channels: Bank vs. Non-Bank, 2017
4.3.2. By Types of Services (Branch Pick-Up, Online, Door to Door, Prepaid Cards and Direct Credit to Bank Account), 2012-2017
4.3.3. By Major Flow Corridors, 2017

Migration to Calabarzon, Manila and Central Luzon
Major Reasons for Migration
Remittance Recipient Regions

4.3.4. Growth Drivers for Philippines Domestic Remittance Market

Decline in Unbanked Municipalities
DeclineIn the Number of Pawnshops
Surge in BPO Employees in the Philippines, 2012-2017
Infrastructural Development
Higher Remittance During Festival Months
Robust Growth in the Tech Industry
Rising Rate of Internal Migration

4.4. Competitive Landscape of Major Players in Philippines Domestic Remittance Market
4.4.1. Market Share of Major Players in Philippines Domestic Remittance Market, 2017

Competition Scenario

4.4.2. Strengths and Weaknesses of Major Non-Bank Domestic Remittance Players
4.4.3. Service Positioning, Strategy and Key Performance Indicators

Palawan Pawnshop
Cebuana Lhuillier
LBC Express
Western Union
M Lhuillier
Pinoy Express

4.5. Philippines Domestic Remittance Future Projections and Outlook, 2018-2023

By Domestic Remittance through Non-Banks and Banks, 2018-2023
By Domestic Remittance - Types of Service, 2018-2023

5. Philippines Bill Payment Market
5.1. Philippines Bill Payment Market Size, 2012-2017
5.2. Philippines Domestic Bill Payment Market Segmentation, 2017
5.2.1. By Channel of Payment (Non-Bank and Bank), 2017
5.2.2. By Type of Payments (Water, Electricity and Fuel Bills, Education, Insurance Premium, Communication), 2017
5.2.3. By Offline and Online Bill Payment, 2017
5.2.4. By Method of Payment (Convenience Stores, Online/Mobile Payments, Biller's Business Offices, Remittance Companies, Banks and Others), 2017
5.3. Philippines Bill Payment Future Outlook and Projections, 2018-2023

By Bill Payments through Non-Banks and Banks, 2018-2023
By Bill Payments - Type of Bills, 2018-2023
By Bill Payments - Mode of Payment, 2018-2023
By Bill Payments - Method of Payment, 2018-2023

5.4. Rising Penetration of Mobile Money Transfers
5.4.1. Introduction
5.4.2. Mobile Money Transfer

Mobile Payments

5.4.3. Mobile Money Transfer Platforms

Smart Money
Globe Telecom
Benefits of Mobile Money Transfer

5.4.4. Near Field Communication (NFC)
5.4.5. Mobile POS
5.4.6. Barriers to Entry and Relative Comparison of Bank and Non-Bank Remittance Players (security and compliance issues)
5.5. Analyst Recommendations

Recommendations for Banks

6. Philippines International Remittance Market
6.1. Global and Philippines International Remittance Industry Introduction

Overview - Global and Philippines Remittance Flows
Remittance Inflowand Philippines Economy
Demand For Money Transfer
Players in International Remittance Market

6.2. Remittance Working Model
6.3. 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

6.4. Philippines International Remittance Market Size, 2012-2017
6.5. Philippines International Remittance Market Segmentation, 2012-2017
6.5.1. Major Flow Corridors (US, UAE, Saudi Arabia and UK), 2012-2017
6.5.2. By Major Remittance Channel (Banks and Non-Banks), 2017
6.5.3. By Land-Based and Sea-Based OFWs, 2012-2017
6.5.4. Average Remittance Transaction per OFW on the Basis of Place of Work, 2013 - 2017
6.5.5. Average Remittance Transaction per OFW on the Basis of Major Occupation Group, 2014 - 2017
6.5.6. Average Remittance Transaction per OFW on the Basis of Mode of Remittance, 2013 - 2017

Agencies/ Local Offices, Banks, Door to Door, Friends/Co-Workers and others

6.5.7. Distribution of OFWs by Cash Remittance Sent, 2013 - 2017
6.6. Trends in Philippines International Remittance Market

Seasonal Remittance Patterns
Digital Trends in International Remittance
Rate of Unbanked Population
Adaptation of Latest Technologies

6.7. Competitive Landscape of Major Players in Philippines International Remittance
6.7.1. Market Share of Major Banks and Non-Bank Channels, 2017
6.7.2. Strengths and Weaknesses of Banks and Major Non-Bank International Remittance Players
6.8. Service Positioning, Pricing Strategy and Key Performance Indicators
6.8.1. Banco De Oro (BDO)
6.8.2. The Bank Of The Philippine Islands (BPI)
6.8.3. Philippine National Bank (PNB)
6.8.4. Western Union
6.8.5. Metropolitan Bank
6.8.6. MoneyGram
6.8.7. iRemit
6.8.8. WELLSFARGO
6.8.9. Xoom
6.9. Philippines International Remittance Market Future Outlook and Projections, 2018-2023

By Banks and Non-Banks
By Land-Based and Sea-Based OFWs
By Remittance Source Regions

6.9.1. Upcoming Technological Changes
6.10. Cause and Effect Relationship in Philippines International Remittance Market

Transaction Fees
Decreasing Remittance Costs
Regulations on Cost of Remittance
Regulatory Acts and Laws
No tax reform for OFW Remittances

7. Macro-Economic Factors Affecting Philippines Remittance Market
7.1. Number of Financial Institutions in Philippines, 2012-2023
7.2. Number of Households in Philippines, 2012-2023
7.3. Household Income in Philippines, 2012-2023
7.4. Number of ATMs in Philippines, 2012-2023

For more information about this report visit https://www.researchandmarkets.com/research/ztb6g8/philippines_money?w=5

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