OVERSEAS WORKERS expect to cut down on their remittance over the next 12 months, with remittance recipients also expecting a drop-off, according to Visa, Inc., citing the results of a survey.
“All countries surveyed show a decline in expectations to send/receive remittances over the next 12 months,” Visa said.
Visa surveyed 44,000 remittance senders and receivers from 20 countries, including the Philippines.
Only 7% of Filipino respondents said they expect to send remittances over the next 12 months, while 44% expect to receive remittances.
In May, cash remittances coursed through Philippine banks rose 2.9% year on year to $2.658 billion.
This the lowest level of monthly remittances since May 2024.
Within the Asia-Pacific, China posted the steepest expected remittance decline, with those expecting to remit funds at 26%, down 25 percentage points, and those expecting to receive at 21%, down 15 percentage points.
The corresponding figures for Japan were send 3%, receive 4%; India send 18%, receive 28%; and Australia send 25%, receive 22%.
In the Philippines, 41% of respondents said they sent or received remittances due to unexpected needs, while 39% reported receiving regular remittances.
Digital apps remained the most popular method to send or receive remittances in the Asia-Pacific. In the Philippines, 74% of senders and 66% of receivers cited a preference for digital apps.
“In all markets surveyed, second to digital apps (were) digital remittances from a physical location,” Visa said. — Aaron Michael C. Sy