Visa empowers OFWs, digital workers, and SME owners with seamless remittance solutions
12/11/2024
As holiday remittances peak, Visa enhances its commitment to simplifying and securing digital money transfers for OFWs, digital workers, and SME owners worldwide.
Remittances from Overseas Filipino Workers (OFWs), digital workers, and SME owners surge during the holiday season, as many Filipinos abroad send extra funds to support family celebrations, year-end expenses, and business investments. In December 2023, remittances hit a record $3.6 billion, a 3.9% increase from the previous year. This seasonal boost provides essential financial support for Filipino households and local businesses, covering holiday needs and fueling consumer spending.
Digital money movement solutions are making it easier than ever for OFWs, digital workers, and SME owners to send money home. This has driven a surge in remittance volumes, especially during the holiday season. With 75% of Filipino senders using digital apps in 2023, according to Visa's Money Travels: 2024 Annual Remittances Adoption report, they can transfer funds with greater convenience, speed, and security.
From Philippines to the world: supporting digital workers and SME owners
However, the movement of funds to and from the Philippines is not solely driven by OFWs. As the Philippine economy embraces digitalization, many Filipinos are increasingly servicing overseas clients through roles such as Virtual Assistants (VAs), in the Business Process Outsourcing (BPO) sector, and other online freelance work. This expanding community of digital workers is fueling cross-border transactions, boosting inbound flows, and solidifying the Philippines' position in the global digital economy. The country's BPO sector, a major driver of this growth, is forecasted to generate $35.5 billion in revenue1 and employ 1.82 million Filipinos by 20242. Complementing this is the rising freelance industry, with 1.5 million Filipinos now registered as freelancers3.
Jeffrey Navarro, Country Manager for Visa Philippines, said: “The Philippines has a robust OFW remittance market, contributing approximately 8.5% of the country’s GDP4. With digital money movement solutions, Filipinos now have more options to send money back home. This shift simplifies financial support and fosters greater financial inclusion, enabling access to secure, regulated digital channels.
At Visa, we recognize the vital role that OFW remittances play in supporting Filipino families and driving economic resilience. By enhancing digital money movement solutions, we’re making it easier, faster, and safer for Filipinos to send and receive funds globally. Our commitment extends to empowering digital workers and SME owners with seamless and reliable cross-border payment solutions."
For freelancers and small business owners, digital payment modes offer opportunities to grow their businesses. Earlier research from Visa shows that among businesses in the Philippines that have adopted digital payments, those accepting cards saw the most significant turnover increases at 83%. Visa's data revealed that 72% of surveyed SMEs found business management easier with digital payments. These payments provide instant transfers and enable cashless transactions, enhancing the commerce experience. Visa supports SMEs by offering widespread acceptance and robust protection against fraudulent activities for both merchants and customers.
Making remittances more seamless
As more Filipinos turn to digital money movement platforms, many of the challenges associated with traditional money movement solutions—such as high fees, lengthy and processing times—are being reduced.
In the Philippines, where these barriers have long impacted senders and recipients alike, digital solutions are making remittances more affordable and convenient. In 2023, of the Filipinos who used digital money movement services, 58% indicated a preference to use them more frequently going forward, compared to just 24% for traditional money movement services5. Digital users also report fewer issues and greater reliability, underscoring the advantages of digitization in making remittances easier and more accessible.
Visa recognizes the importance of seamless money movement solutions for OFWs and supports this through a Visa card feature that enables cardholders to instantly receive funds sent from abroad. This offers a faster and more convenient way to send funds globally. Any customer with a Visa card issued in the Philippines can receive funds by simply providing their card number to the sender.
This, among other innovative services, underscores Visa's commitment to enhancing digital money movement for Filipinos.
As digital money movement evolves, it transforms how Filipinos connect with the global economy. The ease, speed, and affordability of digital platforms are reshaping the money movement landscape, simplifying processes for OFWs, and unlocking opportunities for SMEs, outsourcing, and freelance industries. Visa’s commitment to digital solutions strengthens economic support, growth, and financial inclusion for a more resilient Philippine economy.
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1 Monzon, A. M. (2024, October 3). BPO sector revenue seen nearing $38-B mark. INQUIRER.net. https://business.inquirer.net/483245/bpo-sector-revenue-seen-nearing-38-b-mark
2 Balaoing, B. (2024, October 2). IT-BPM sector hopes to have 1.82 million employees by end of 2024. ABS-CBN News. https://news.abs-cbn.com/business/2024/10/2/it-bpm-sector-to-hopes-to-have-1-82-million-employees-by-end-of-2024-industry-group-1547
3 Balaoing, B. (2024, October 2). IT-BPM sector hopes to have 1.82 million employees by end of 2024. ABS-CBN News. https://news.abs-cbn.com/business/2024/10/2/it-bpm-sector-to-hopes-to-have-1-82-million-employees-by-end-of-2024-industry-group-1547
4 OFW remittances hit all-time high in 2023. (2024, February 15). Philippine News Agency. https://www.pna.gov.ph/articles/1218913
5 The “Money Travels: 2024 Annual Remittances Adoption” report surveyed 43,789 remittance users across North & Latin America, Europe, the Middle East, and Asia Pacific.
About Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.