After the resurgence of COVID-19 cases and mobility restrictions in the Philippines, all eyes are now on what 2022 will bring to the millions dependent on remittances each year.
Earl Melivo, WorldRemit Country Director, said remittance growth is expected to continue this year.
“With the support of the BSP, digital payments services will continue to improve. All WorldRemit transfers are encrypted through our automated machine learning system for fraud detection. Moreover, consumer education on the benefits and threats of the digital financial space is an ongoing endeavor by both the private and public sector to help protect customers,” Melivo said.
“WorldRemit processed nearly $10 billion in transactions in 2020 and remittances are expected to continue growing in 2022– perhaps at a slightly consistent rate when economies around the world stabilize,” Melivo said.
Melivo also noted mobile wallets’ surge in popularity.
“2020 saw a $2.4 trillion boom in contactless mobile payments and the industry is forecasted to maintain momentum. Southeast Asia is the fastest-growing mobile wallet region–supercharged by e-commerce, internet, and smartphone penetration. According to recent studies, Philippine mobile payment users will triple to 75.5 million by 2025,” Melivo said.
In 2020, Melivo noted $12.7 billion in cross-border remittances were processed digitally.
“Electronic payment is a popular alternative to physical banking given the convenience of lower costs, greater convenience, and the ability to send money on the go through mobile applications,” he said.
Addressing safety concerns surrounding money transfers and sharing personal information online, Melivo said money transfer companies have prioritized security measures above all else.
On the sending side, Melivo said more companies are integrating additional features to verify customers through identity documents and their phone’s IP address.
