Philippines Domestic and International Money Transfer Industry Outlook to 2019
Driven by Mobile Money and Increase in OFWs
Region:Asia
Product Code:KR346
October 2015
138
About the Report
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 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. The total market for domestic remittances was valued at USD ~ million in 2014 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 80% of the total domestic remittances.
Only ~% of the total number of domestic remittance transactions was accounted by the banking channel in 2014. Of this, a significant proportion of the money transfers took place in urban areas in 2014. 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. Major players in the domestic remittance market includes Palawan Pawnshop, LBC Express, Western Union, M Lhuilier, Cebuana Lhuilier, Banco de Oro Unibank, Pinoy Express, iRemit and others.
The domestic remittance transaction volume in the Philippines is expected to grow at a CAGR of ~% from USD ~ million in 2014 to USD ~ million in 2019. However, owing to stiff competition resulting from price wars amongst several players, the market is likely to showcase a nominal growth in terms of revenues as the average transaction charges are expected to decline in the coming years.
The bill payment market in the Philippines was recorded at USD ~ million, in terms of volume of transactions taking place in 2014. Bill payment transaction volume has grown at a CAGR of ~% from USD ~ million in 2009. The total number of bills paid was ~ million in 2009 which has grown to ~million in 2014 at a CAGR of ~%. A greater proportion of the bill payment has been utilized for the payment of utilities such as water and electricity. Convenience stores such as 7-Eleven and Ministop were responsible for ~% of the total bill payments in the Philippines in 2014. Owing to the greater reach and accessibility, convenience stores have dominated the bill payment landscape in the Philippines over the past many years. A noteworthy chunk of the population in the country has preferred to pay bills in cash directly at the biller offices with biller business offices registering a share of ~% in 2014.
The Philippines international remittance market registered a total of USD ~ million in inbound remittances from other countries in 2014 and showcased an annual growth rate of ~% from 2013. The total remittances from OFWs accounted for ~% of the country’s overall economic output in 2014. Stable progress in the diversity and coverage of global remittance networks has enabled OFWs to remit money at a reasonable cost of services which include automated teller machines, web-based services, and reusable/reloadable cash cards. Remittances also exhibit an increase amid the holiday season especially in December as overseas Filipino workers send more money back home for Christmas festivities, gifts and other holiday related expenses.
With a market share ~%, Banco de Oro was the largest bank in the Philippines remittance market in 2014. The total volume of international remittances coursed through the bank was USD ~ million in 2014.
- The market size of Philippines domestic remittance market.
- The market size of Philippines international remittance market.
- The market size of Philippines bill payment market.
- Market segmentation of Philippines domestic remittance market on the basis of major remittance channels, type of services and major flow corridors.
- Market segmentation of Philippines international remittance market on the basis of major flow corridors and average remittance transaction per OFW on the basis of occupation, place of work and mode of transfer.
- Market segmentation of Philippines bill payment market on the basis of types of payment.
- Trends and Development in Philippines domestic and international remittance market.
- Entry barriers in Philippines domestic and international remittance market.
- Competitive landscape, market share, service positioning and strengths and weaknesses of major players in Philippines domestic and international remittance market.
- Future outlook and projections of Philippines domestic and international remittance market.
Products
Companies
Table of Contents
1. Executive Summary
Macro Environment in Contact with Remittance Industry Performance
Domestic Remittance Market
Domestic Bill Payment Market
International Remittance Market
2. Macroeconomic Variables Effecting Philippines Remittance Market
2.1. Gross Domestic Product of Philippines, 2009-2019
2.2. Population and Number of Households in the Philippines, 2009-2019
2.3. Philippines Trade Scenario and Exchange Rate Fluctuations, 2009-2014
2.4. Disposable Income per Household in Philippines, 2009-2019
2.5. Overseas Filipino Workers, 2009-2014
2.5.1. Number of Land-Based and Sea-Based OFWs, 2009-2014
2.5.2. Land-Based OFW Distribution across Countries and by Occupation, 2009-2014
2.5.3. Demand for Money Transfer
2.6. Number of Banks and ATMs in Philippines, 2009-2014
3. Philippines Domestic Money Transfer Market
3.1. Philippines Domestic Remittance and Bill Payment Introduction
3.2. Philippines Domestic Remittance Market Size, 2009-2014
3.3. Philippines Domestic Remittance Market Segmentation, 2014
3.3.1. By Major Remittance Channels: Bank vs. Non-Bank, 2014
3.3.2. By Types of Services (Door to Door, Online, Branch Pick-up, Prepaid Cards and Direct Credit to Bank Account), 2012-2014
3.3.3. By Major Flow Corridors, 2014
3.4. Growth Drivers of Philippines Domestic Remittance Market
3.4.1. Increase in Banked Municipalities
3.4.2. Expansion of Pawnshops, 2009-2014
3.4.3. Surge in BPO Employees in the Philippines, 2009-2014
3.4.4. Infrastructural Development
3.4.5. Higher Remittance during Festival Months
3.5. Competitive Landscape of Major Players in Philippines Domestic Remittance Market
3.5.1. Market Share of Major Players in Philippines Domestic Remittance Market, 2014
3.5.2. Strengths and Weaknesses of Major Non-Bank Domestic Remittance Players
3.5.3. Service Positioning, Strategy and Key Performance Indicators
3.6. Philippines Bill Payment Market Size, 2009-2014
3.7. Philippines Domestic Bill Payment Market Segmentation, 2014
3.8. Market Share of Major Domestic Bill Payment Service Providers, 2014
3.8.1. Transaction Fees Comparison
3.9. Remittance Cost and Regulatory Changes (Domestic and International Remittance)
Regulatory Acts and Laws
3.10. Rising Penetration of Mobile Money Transfers
3.11. Barriers to Entry and Relative Comparison of Bank and Non-Bank Remittance Players (security and compliance issues)
3.12. Philippines Domestic Remittance and Bill Payment Future Projections and Outlook, 2015-2019
3.13. Analyst Recommendations
Money Transfer Companies and Pawnshops
Banks
4. Philippines International Remittance Market
4.1. Global and Philippines International Remittance Industry Introduction
4.2. Remittance Working Model
4.3. Products and Services in Bank and Non-Bank Channels
4.4. Philippines International Remittance Market Size, 2009-2014
4.5. Philippines International Remittance Market Segmentation, 2009-2014
4.5.1. Major Flow Corridors, 2009-2014
4.5.2. Average Remittance Transaction per OFW on the Basis of Place of Work, 2013 and 2014
4.5.3. Average Remittance Transaction per OFW on the Basis of Major Occupation Group, 2013 and 2014
4.5.4. Average Remittance Transaction per OFW on the Basis of Mode of Remittance, 2013 and 2014
4.5.5. Distribution of OFWs by Cash Remittance Sent, 2013 and 2014
4.6. Trends in Philippines International Remittance Market
4.7. Competitive Landscape of Major Players in Philippines International Remittance
4.7.1. Market Share of Major Banks and Non-Bank Channels, 2014
4.7.2. Strengths and Weaknesses of Banks and Major Non-Bank International Remittance Players
4.7.3. Service Positioning, Pricing Strategy and Key Performance Indicators
4.8. Philippines International Remittance Market Future Projections and Outlook, 2015-2019
4.9. Cause and Effect Relationship in Philippines International Remittance Market
5. Appendix
5.1. Market Definitions
5.2. Abbreviations
5.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Final Conclusion
5.4. Disclaimer
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