Study

Consumers Seek Choice for How and When They Transfer Money Internationally

Tech-savvy Filipinos seek choice above all for their future international money transfer needs, according to the results of a study commissioned by Western Union. Exclusive insights show that while 44% of consumers currently prefer to receive money transfers through digital platforms, almost 70% want to be able to choose how they collect their funds in the future – be it in cash or digitally.

The study results, which bolster Western Union’s recently announced ‘Evolve 2025’ (E25) strategy of combining high-value, accessible retail and digital financial services for the world’s aspiring populations, explore consumer sentiment on money movement. More than 2000 consumers across the Philippines who send and receive money internationally were surveyed.

“As consumers look to the future, the principle of choice in how to transfer money internationally is most appealing,” said Jean Claude Farah, President of Middle East and Asia Pacific at Western Union. “This resonates with what we see among our customer base, who actively seek services that are convenient, fast and reliable, based on their needs.”

“It amplifies the need for larger ecosystems, where retail and digital platforms grow and evolve symbiotically,” Farah added. “At Western Union, one of the key focus areas to accelerate growth in the Philippines and around the world is just that - to build on our core capabilities so that we can help grow, strengthen and evolve a financial ecosystem that surrounds our customers. Through our omnichannel approach, we believe that we can harness the power of both the physical and digital touchpoints to serve all our customers’ money movement needs.”

Digital money transfer platforms are used by many, but still not all

World Bank data shows that the Philippines is the fourth-largest inbound (receiver) market in the world, bringing in USD37 billion in 2021. The Government and Central Bank have made significant strides in driving digital transformation and encouraging inclusion by creating and committing to a clear financial inclusion strategy.

Western Union’s study results show, however, that there is still more to do. While many consumers opt to use digital platforms, many others do not.

Trust ranks highly as a top barrier for using digital money transfer services among senders (31%) and receivers (23%). Thirty-seven percent of receivers prefer face-to-face interaction, while senders say process or customer experience prevents them from doing so (15%). However, approximately 30% of senders and 14% of receivers do not transfer money online for reasons such as lack of connectivity, limited knowledge of digital services, no online banking history or because they are generally unbanked.