December 12, 2024 | 12:00am
MANILA, Philippines — Global payments platform Visa is strengthening its commitment to simplifying and securing digital money transfers for overseas Filipino workers (OFWs), digital workers, and small and medium enterprises (SME) owners especially this holiday season when remittances peak.
In a statement yesterday, Visa said it 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,” Visa said.
It stressed that this feature, among other innovative services, underscores Visa’s commitment to enhancing digital money movement for Filipinos, which transforms how they 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 driving a more resilient Philippine economy,” the payments platform said.
Visa reaffirmed this commitment as the holiday season is setting in, a period when remittances from OFWs, digital workers and SME owners surge as many Filipinos abroad send extra funds to support family celebrations, year-end expenses and business investments.
It cited government data from last year showing that remittances hit a record $3.6 billion in December 2023, a 3.9 percent 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,” Visa noted.
The company emphasized that digital money movement solutions are making it easier than ever for OFWs, digital workers and SME owners to send money home, which has driven a surge in remittance volumes, especially during the holiday season.
“The Philippines has a robust OFW remittance market, contributing approximately 8.5 percent of the country’s GDP. 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,” Visa Philippines country manager Jeffrey Navarro said.
“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,” he added.
Visa emphasized that the movement of funds to and from the Philippines is not solely driven by OFWs but is also supported by the rise of digital workers 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,” Visa said.
It highlighted that digital payment modes offer opportunities for freelancers and small business owners 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 percent. Additionally, Visa’s data revealed that 72 percent of surveyed SMEs found business management easier with digital payments.
These payments provide instant transfers and enable cashless transactions, enhancing the commerce experience, the payments provider said.
“Visa supports SMEs by offering widespread acceptance and robust protection against fraudulent activities for both merchants and customers,” it added.
As more Filipinos turn to digital money movement platforms, Visa emphasized that 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,” Visa said.
It cited findings from its own research showing that 58 percent of Filipinos who used digital money movement services in 2023 indicated a preference to use them more frequently going forward, compared to just 24 percent for traditional money movement services.
“Digital users also report fewer issues and greater reliability, underscoring the advantages of digitization in making remittances easier and more accessible,” Visa said.
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