Visa’s “Money Travels: 2024 Digital Remittances Adoption” report highlights the resilience of remittance flows in Asia Pacific, driven by digital platforms and robust markets like India, China, and the Philippines. Despite global economic challenges, digital remittances are growing, supported by partnerships and a strong focus on financial inclusion and efficiency.
18 June 2024 – Visa’s latest “Money Travels: 2024 Digital Remittances Adoption” research report reveals that despite global challenges, remittance flows in the Asia Pacific (APAC) region, particularly in high-growth markets such as mainland China, India, and the Philippines, remain strong. These markets are spearheading the adoption of digital remittances, driving significant progress and positive change despite macroeconomic headwinds.
Resilient Remittance Markets
India, the world’s leading remittance recipient in 2023, continues to dominate the region with the highest outbound and inbound remittance flows. A significant majority of Indians, 86% for outbound and 85% for inbound, engage in remittance transactions at least once a year. The Philippines also shows resilience, with 79% of Filipinos sending and 84% receiving remittances annually.
Digital Platforms as Growth Catalysts
The increasing prevalence of digital platforms is a major factor driving remittance growth. Markets like India, mainland China, and Singapore exceed global averages in the proportion of digital remittances sent and received. The convenience and efficiency of digital platforms are highly favored, with over 70% of remittance users in these markets utilizing app-based payment methods.
Challenges in Transparency and Fees
Despite the advantages, transparency issues regarding hidden fees in digital remittance services persist. In the Asia Pacific region, up to 50% of respondents reported being offered free transfers that later incurred hidden costs. This issue is particularly acute in India (55%), the Philippines (53%), and mainland China (51%).
Visa’s Role in Digital Remittance Growth
Visa collaborates with global remitters such as Brightwell, Thunes, Remitly, Western Union, and Asia United Bank (AUB) to enhance digital remittance services. In Asia Pacific, Visa recorded a twofold increase in digital remittances over the past two years, reflecting the growing demand for efficient money movement. The Philippines, accounting for more than 60% of all inbound remittance transaction volumes in the region, demonstrates remarkable robustness, supported by Visa’s partnership with AUB.
Supporting Financial Inclusion
“Remittances play a crucial role in uplifting economies and communities globally,” said Chavi Jafa, Head of Commercial and Money Movement Solutions, Asia Pacific, Visa. “Digital solutions accelerate and strengthen the impact of every dollar sent and received. At Visa, we are committed to building efficient, reliable, and transparent digital remittance solutions.”
Future Outlook
Governments across Asia Pacific are focused on the widespread digitalization of their economies, particularly in financial services. As consumer habits evolve, the region is leading the global adoption of app-based remittances, with policymakers pushing digital agendas to intensify this trend in the coming years.
Abraham T. Co, Vice Chairman of Asia United Bank Corp., emphasized the importance of remittances for Filipino families and communities, stating, “Our partnership with Visa enables fast, secure, and convenient digital transfers, supporting Filipinos’ daily needs and major milestones.”
