AFTER the resurgence of COVID-19 cases because of the presence of a new and highly transmissible variant just before the past year ended, it also necessitated a fresh round of mobility restrictions in the Philippines.
But despite this development, all eyes are now on what the year 2022 will bring to the millions dependent on remittances each year.
FrontpagePH.com picked the mind of WorldRemit Country Director, Earl Melivo, where he shares his market trend predictions for the year.
Remittance growth expected to continue
WorldRemit processed nearly US$10 billion dollars 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, according to Melivo.
Mobile wallets surge in popularity
As more people were relegated to the confines of their homes as instructed by the government in order to curb the spread of the deadly disease, 2020 also saw a staggering US$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 the year 2025.
In 2020, US$12.7 billion in cross-border remittances were processed digitally. Electronic payment is a popular alternative to physical banking given the advantage of lower costs, greater convenience, and the ability to send money on the go through mobile applications.
Safety comes first
Addressing safety concerns surrounding money transfers and sharing personal information online, money transfer companies have prioritized security measures above all else.
On the sending side, more companies are integrating additional features to verify customers through identity documents and their phone’s IP address.
On the receiving side—such is the case in the Philippines as one of the top five remittance recipients in 2021—more deposits will be made directly to bank accounts and e-wallets mainly because an increasing number of people prefer not to handle cash.
“With the support of the BSP (Bangko Sentral ng Pilipinas), digital payments services will continue to improve,” Melivo told FrontpagePH.com.
“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 added.
Speed is of the essence
To deliver the demand for faster money transfers, companies continually invest in their technology systems to make data exchange with financial institutions, telcos and local partners, and remittance flow more seamless.
At WorldRemit, Melivo said 95 percent of transfers are ready within minutes. It uses API technology that enables it to facilitate remittances in an almost real-time basis. Furthermore, increased communication and tracking features will be integrated for customers’ added peace of mind.
The simpler the better
Eventually, the steps to money transfers will be better optimized—from downloading the application, creating the user profile, and adding the beneficiary—until remittances become as easy as sending a text message.
While relatively new, it is evident digital remittance is here to stay as the method of choice for customers. They have proven they’re just as safe as bank transfers—only much faster, cheaper, and more convenient.