Jose, a young Filipino professional, has been living in Dubai for several years, working in the construction industry. Like millions of other expatriate Filipinos, Jose finds a precarious balance between his career abroad and his family obligations back home.
Although separated by thousands of miles from his native village near Manila, he remains deeply connected to his family in the Philippines through regular money transfers. For him, sending money home is not just a financial transaction, but an emotional and vital support bridge that ensures the well-being of his loved ones.
Jose is not an isolated case. With more than 10 million Filipinos living abroad, contributing approximately $34 billion annually to the country’s economy through their remittances, money transfers play a crucial role in the Philippine economy. Every dollar sent is carefully used to cover essential expenses such as education, healthcare, and the daily needs of loved ones.
Remittances are essential for maintaining the standard of living for many Filipino families, and in this context, it is crucial to choose the safest, most efficient, and cost-effective methods for these financial exchanges.
This article is designed to offer a comprehensive guide, exploring not only the legal and fiscal aspects related to these transactions but also the most suitable options for sending or receiving money from the Philippines, tailored to different needs such as education and healthcare. We will examine the fastest, most economical, and most appropriate methods to ensure that each peso sent reaches its intended destination without hassle.
What are the Different Ways to Send and Receive Money in the Philippines?
The Philippines, a vibrant archipelago of over 7,000 islands, is one of the major recipient nations of international money transfers.
Today, the number of money transfer companies in the country has multiplied, each day hoping to improve the financial situation of its residents somewhat more.
According to the 2023 report on financial inclusion in the Philippines, 84.5% of the cities and municipalities in the country had a banking presence, covering nearly 1,380 cities.
It is also interesting to note that no progress has been observed since 2022 as the figures are similar.
To improve this, the Bank of the Philippines has implemented an electronic payment system called PESONet. It allows fund transfers from one account to another across different financial institutions.
Funds transferred via PESONet are generally available in the recipient’s account within one business day, making it a convenient alternative to checks and cash transfers for transactions that do not require immediate fund availability.
PESONet is accessible through various digital channels, including online banking platforms, mobile banking apps, and other electronic payment services, facilitating transactions without the need for a physical bank visit.
At the beginning of 2023, more than 22 million digital payments were recorded. While this represents an increase of 13.5% compared to the previous year, it is still notable that only a minority of people have taken the step.
Financial inclusion remains a challenge for most Filipinos who face difficulties in accessing numerous money sending facilities from their families.
1 – Traditional Banks
Traditional banking services like Union Bank, Maya Bank, or BDO Network Bank are among the reliable and secure options for sending and receiving money in the Philippines.
Advantages:
- Security and Trust: Banks are regulated by financial oversight bodies, offering a high level of security and protection for your funds.
- Complementary Services: In addition to money transfers, banks offer a range of financial services, such as investment advice, loans, and credit facilities.
- Direct International Transfers: You can send money directly from your bank account to an account in the Philippines, simplifying the process without the need for intermediaries.
The Disadvantages:
- High Costs: Transfer fees and exchange rates can be particularly high. Additional costs may accumulate, especially for frequent or large transfers.
- Slower Process: The processing of international transfers can take several business days, which is not ideal for urgent needs such as healthcare.
- Complexity and Documentary Requirements: Sending money abroad through banks can require extensive documentation and administrative formalities, making the process sometimes tedious.
- Need for a Bank Account: This requirement can be a major barrier, especially in the Philippines, where 3 out of 5 Filipinos have a bank account, totaling over 43 million inhabitants. The main reasons are lack of funds, the cost of opening an account, and the absence of necessary documents (such as proof of residence, proof of income, and an identification card or its equivalent). This financial barrier limits access to money transfers for those who potentially need it the most.
2 – Online Services and Applications
Online services such as Wise (formerly TransferWise), WorldRemit, PayPal, MoneyGram, and Cash App have revolutionized the way we send and receive money around the world.
They offer a convenient and often more economical alternative to traditional money transfer methods, suited to our digital age.
Further along in this article, you will discover our ranking of the fastest and least expensive ways to send or receive money in the Philippines.
Advantages:
- Speed and Ease of Use: These platforms allow for fast, often instant, money transfers with a simple online operation or through a mobile app. Their intuitive user interface makes the process accessible to everyone.
- Cost Advantage: The fees applied by these services are generally lower than those of traditional banks, especially for international transactions. They also offer competitive exchange rates, which can lead to significant savings.
Disadvantages:
- Need for an Account on the Same Platform: To receive money via these services, the recipient often must have an account. This can be a barrier for people who are not accustomed to using such services or who do not have access to technological means in the Philippines (if more than 195 million online accounts were registered at the beginning of 2023, only 47 million were considered active).
- Lack of Personalization for Specific Needs: These services are not specifically designed for needs such as access to healthcare. They do not provide the same assurance that every penny transferred will be used for medical purposes or to improve the well-being of loved ones.
- Lack of Transparency and Tracking: While these platforms offer some transparency regarding fees and the transfer process, they do not provide a detailed mechanism to track how funds are specifically used once received. This is crucial for donors who want to ensure that their financial support is directly allocated to specific needs, such as healthcare for their loved ones.
- Geographical Limitation: Often, these applications are designed to operate primarily in a single country or a specific region, which poses a problem for immigrants wishing to financially support their loved ones in the Philippines.
- Data Security: Although these applications take measures to protect users’ financial information, concerns about the security of personal data remain.
3 – The Online Health Credit Solution
If you want to support your loved ones in the Philippines, especially in the health sector, health credits offer a solution that combines speed, security, and positive impact.
KimboCare was born from the experience of two immigrants facing the challenges of supporting the health of their loved ones back home while navigating their own lives in the United States and Europe, a story similar to that of Jose which we mentioned in the introduction.
This story is not unique, but our response to this challenge is completely unique.
KimboCare was created to transform the way we care for our families from afar, whether in the Philippines or in other developing countries.
Now, you can purchase digital health credits so that your loved ones can access preventive and curative care services without needing a bank account or a digital currency platform.
This process is simple, direct, and can be done from anywhere, at any time. These credits will be immediately usable by patients who will be welcomed in medical facilities that are always verified and monitored by KimboCare.
Rather than simply sending money, often without guarantee that it will be used for necessary healthcare or without being able to ensure the quality of care received, health credits offer a transparent and secure solution.
You get real-time tracking of medical services purchased with the health credits, ensuring that every penny truly contributes to the health and well-being of the recipient.
The commitment lies in giving vulnerable populations, particularly women and children, the means to access quality healthcare, thereby contributing to a longer and healthier life.
The usefulness of health credits lies in protecting your data with advanced encryption protocols, offering you additional peace of mind in contributing to the health of your loved ones.
The adoption of digital currency has offered significant benefits in terms of security, reducing the risk for families of exposing their loved ones to dangers by carrying large sums of money from banks.
The Fastest Ways to Send or Receive Money in the Philippines
To send or receive money quickly in the Philippines, several options are available to you, each with its own specific features, advantages, and limitations.
It is crucial to choose the method that best fits your needs while considering speed, costs, and particular requirements.
Health Credits
By purchasing health credits, you can ensure that your financial support is used directly for quality health services.
For urgent health needs, prioritize services offering instant or same-day transfers. Platforms like KimboCare directly inform the patient via SMS or a call.
Not only does this allow for efficient and quick fund transfer, but it also ensures that your money contributes to a vital cause: the health of your loved ones.
Purchasing health credits frees you from the uncertainties and delays often associated with traditional money transfers.
When you buy health credits for a loved one in the Philippines, the recipient can access necessary care without waiting, thanks to a network of reliable and verified medical partners.
Moreover, you benefit from complete transparency and real-time traceability of the medical services provided, which is not always the case with other money transfer methods.
Online Services and Mobile Apps
Online services and mobile applications are often the fastest for money transfers.
Platforms like PayPal, Western Union, World Remit, and TransferWise (now Wise) enable almost instantaneous transfers.
However, it is important to note that these speeds can vary depending on the amount sent and necessary security verifications.
Some platforms limit the amount you can send over a given period without additional verification, while others may require detailed information about the recipient for compliance reasons.
Moreover, while mobile wallets indeed allow instant transfers, the lack of digital payments in the Philippines means your recipient may not be able to access the money immediately or use it quickly.
This is partly because the digital payment system in the Philippines is not sufficiently developed.
Even if your loved ones have a digital account, they will still need to withdraw cash to pay for most goods or services.
Some companies charge high fees to withdraw money from their system. For example, PayPal charges about 5%, which is roughly the same price as a bank transfer.
Another problem, as shown by Global Data: “in 2022, there were 126 million debit cards in circulation in the Philippines, compared to only 10.9 million credit and payment cards.
International Banks
International bank transfers can also be quick, especially if both parties use the same bank or banks with cooperation agreements.
However, interbank transfers may be subject to delays due to stricter verification processes and the need to go through clearing systems.
Amount limits and specific requirements vary significantly from one bank to another.
This is particularly important in the Philippines, where most households are limited in their withdrawals because some banks impose daily limits. The limit is often PHP 50,000, equivalent to about 850 USD.
This is a relatively small amount, especially in a potential emergency.
Moreover, the Philippine banking system is not easily accessible, with only 29 ATMs per 100,000 inhabitants.
In a country where cash payments are preferred, as bank cards are rarely used, this makes transfer funds less accessible for your loved ones.
Least Expensive Ways to Send or Receive Money in the Philippines
Sending or receiving money from a loved one involves adopting a strategic approach to minimize costs while ensuring the security and efficiency of transactions.
Online services and mobile apps often offer more favorable rates than traditional banks, thanks to their leaner cost structures.
Western Union and MoneyGram are optimized for international transfers, offering reasonable fees and competitive exchange rates.
The biggest issue is getting a good exchange rate.
Even if you send the same amount of money each time, the actual amount your family receives can vary.
Before choosing a service, compare transaction fees, applied exchange rates, and look for reviews to ensure reliability and security.
Opting for platforms that offer a transparent exchange rate as close as possible to the market rate without hidden fees can greatly reduce the costs of transferring money to the Philippines.
Although mobile money accounts are increasingly used, it is interesting to note that most remittances in the country are still received through financial services (77%), rather than being transferred directly to mobile wallets (only 22% of residents use this channel).
Are Zero-Fee Money Transfers Possible?
Platforms like TransferWise (now Wise) and Remitly are renowned for their competitive costs and transparency.
Although the offer of zero-fee money transfers may seem appealing, it can often be misleading, especially in countries like the Philippines.
Money transfer companies need to generate revenue to operate, and if they do not impose explicit transfer fees, they may recover these costs in other ways.
This can include applying less favorable exchange rates, meaning your money loses value en route, or introducing additional fees once you engage in the transfer process.
Therefore, it’s important to be vigilant about hidden fees, which can appear as additional service charges or indirect costs.
Carefully reading the terms of service can save you from unpleasant surprises.
When the purpose of your money transfer is specifically related to supporting the healthcare needs of your loved ones in the Philippines, purchasing health credit emerges as an innovative solution offering affordable costs.
It guarantees that your loved ones receive the necessary healthcare while avoiding unnecessary fees or fluctuations in exchange rates.
You know precisely what care was provided, when, and at what cost, ensuring that your contribution has the desired impact.
Furthermore, no money transfer is required, so you minimize the risk of hidden fees.
Transferring Funds to the Philippines Based on Different Needs
Sending money to the Philippines goes beyond a mere transaction; it’s an expression of support, love, and investment in the future of your loved ones.
Whether it’s promoting access to education or ensuring family health, every Philippine Peso sent carries the potential for change and empowerment, allowing your loved ones to pursue their dreams and build a better future for themselves and their communities.
Education and Work
Investing in education is a top priority for many Filipino families. To support the educational aspirations of their loved ones back home, numerous expatriates choose to send money specifically to cover tuition fees, books, equipment, and school supplies.
These transfers can be made directly through banks or online services, which offer direct delivery options to educational institutions or designated bank accounts. This direct method reduces intermediaries and ensures that the funds reach their intended purpose.
Beyond education, the job market in the Philippines also presents its challenges. For example, Jorge, like many young Filipinos, is in a highly competitive job market where opportunities are often limited.
Having recently completed his engineering studies in Manila, he finds himself without stable employment, navigating between odd jobs and searching for more permanent opportunities.
His older sister, Maria, works as a nurse in Singapore. Aware of Jorge’s precarious situation and their family’s needs in the Philippines, Maria makes an effort to send money regularly to support her brother.
Each month, she transfers about 300 dollars, a significant sum in the Philippines. While this amount may seem modest in Singapore, it represents substantial financial support for Jorge.
Thanks to these remittances, Jorge does more than just cover his daily needs; he can also enroll in professional certification courses.
These additional courses increase his chances of securing a stable and well-paying job, freeing him from the immediate pressure of finding day-to-day livelihoods.
These stories illustrate how vital expatriates’ remittances are not only for education but also for improving employment prospects within the Filipino community, thereby enabling young professionals to build a more promising future.
Healthcare
When it comes to taking care of those who are far away, the greatest concern is often ensuring that the aid sent truly reaches its intended purpose, especially in terms of healthcare.
This concern is not unfounded, as finding a competent and reliable healthcare professional for loved ones in the Philippines can turn a simple process into a true ordeal, especially in emergency situations.
Weeks spent searching for a suitable doctor, the stress of having to navigate a complex healthcare system from afar without any guarantee of quality or effectiveness, and the fear of encountering additional “unofficial” fees, are significant barriers to equitable access to healthcare.
We see this in the stories of Joana, but also in that of Carlo, a father of two living in Manila.
Although Manila has a higher number of healthcare facilities compared to other regions, accessing quality care remains a challenge.
Disparities in care quality, inconsistent standards, and variability in healthcare providers’ expertise exacerbate this issue.
As a result, residents like Carlo often face great uncertainty when seeking medical care.
When Joana, Carlo’s sister, faced a complex chronic illness, she often felt helpless due to the lack of information.
Details about her condition were hard to come by, and she perceived a reluctance among doctors to communicate clearly about the available treatment options, further enhancing the feelings of vulnerability and uncertainty experienced by Carlo.
Carlo had emigrated to the United States a few years ago and had long felt powerless over his sister’s illness back in the Philippines.
However, everything changed when a friend told him about KimboCare.
This platform allows expatriates like him to pay directly for quality healthcare for their loved ones in their home country, ensuring transparency and follow-up.
Intrigued and eager to support his sister more effectively, Carlo quickly signed up and began using the service for Joana’s care.
Thanks to KimboCare, Joana was able to undergo a series of necessary medical examinations to accurately assess her health condition.
Not only were the results clearly communicated, but a detailed treatment plan was established, transforming her care experience.
She finally felt listened to and cared for, with monthly visits scheduled with her healthcare team, ensuring regular and reassuring follow-up—a cost she could not have afforded otherwise.
KimboCare makes a difference by enabling expatriates to pay directly for both preventive and curative health services for their families in the Philippines.
We offer you more than just a platform; we offer peace of mind, knowing that your financial support directly translates into quality healthcare.
Instead of just sending money, you can purchase health credits that will be used exclusively for medical care with reliable and verified local medical partners.
This method not only ensures that your funds are used as intended but also eliminates the stress and uncertainty associated with managing healthcare from a distance.
Additionally, KimboCare steps in as needed to coordinate communications with medical staff to ensure the best possible experience for your loved ones.
By providing direct access to reliable medical facilities and the ability to track care and receive feedback from patients themselves, KimboCare restores peace of mind to expatriates, allowing them to ensure their support translates into quality care.
Nutrition
Ensuring that our loved ones in the Philippines have access to adequate and nutritious food is a fundamental concern, especially in regions where access to quality food can be limited by financial constraints.
Sending money to cover food needs not only supports the physical well-being of our families but also contributes to their happiness and daily security.
Philippine cuisine, rich in flavors and traditions, is a vibrant reflection of the cultural diversity of the islands. Staple ingredients such as rice, fish, and coconut milk, along with local spices and herbs, are essential for creating comforting dishes that nourish both the soul and the bodies of local communities.
Take, for example, Adobo, an iconic dish of Philippine cuisine. This dish combines chicken or pork marinated in a mixture of vinegar, soy sauce, garlic, and bay leaves, slowly cooked until the meat becomes tender and imbued with these robust flavors, reflecting the fusion of culinary influences that characterize the Philippines.
Almost every Filipino, whether at home or abroad, knows the recipe for this symbolic dish that evokes family ties and deep cultural roots.
Fish dishes and rice-based preparations, such as Sinigang (sour soup) and Pancit (noodles), also play a central role in daily nutrition. These dishes, often enriched with vegetables and sometimes meat, are a source of comfort for those far from home, reminding them of the flavors of their childhood.
These dishes are more than just food; they are a reminder of home for expatriates and a tangible way to keep traditions alive, even thousands of miles away.
For Filipinos living abroad, sending money home often goes beyond mere financial aid. It is a way to ensure that their families can access these essential ingredients and traditional dishes.
Each money transfer is thus a way to perpetuate traditions, support local communities, and maintain a vital connection with their cultural heritage. These acts of sending money support not only immediate needs but also strengthen social and cultural ties, essential for the cohesion and well-being of families back home.
Safety Tips for Money Transfers to the Philippines
In an ideal world, sending and receiving money across borders would be as simple and secure as making a phone call.
However, the reality of international money transfers can sometimes be complex, with risks of fraud and scams targeting the most vulnerable individuals.
- Verify and Validate Your Fund’s Destination
Ensure that the money you send reaches the person you intend to help. This may seem obvious, but in urgent situations, mistakes can happen. Always double-check the recipient’s contact details and information before proceeding with any transfer.
We advise opting for well-established and reputable money transfer services that offer complete transparency about the journey of your funds throughout the process.
- Beware of Too-Good-To-Be-True Offers
Scammers often use the promise of extremely favorable exchange rates or zero transaction fees to lure their victims. If an offer seems too good to be true, it probably is.
Similarly, a common scam tactic involves creating a sense of urgency, like a fake health problem of a loved one, to push you to send money quickly without verification.
- Never Share Your Personal Information
Be vigilant with your personal and financial information. Fraudsters may try to obtain it via phone, email, or social networks. A legitimate company will never ask you to provide sensitive information through these channels.
It is preferable to turn to a solution where your data is protected with advanced encryption protocols and you have access control.
- Ensure You Track Your Funds
It is very important to keep a record of each money transfer, as this can prove invaluable in case of problems. These records help trace and contest any suspicious transactions.
After sending money, check with your recipient to confirm the receipt of funds. This simple step can help you quickly detect potential fraud.
The best help you can get for sending or receiving money in the Philippines is from an organization that ensures every penny is invested in specific needs (such as healthcare expenses), with zero risk of misappropriation by unreliable intermediaries.
An Overview of Money Transfer Laws in the Philippines
The Philippines, a dynamic archipelago of over 7,000 islands, is one of the leading nations in receiving international money transfers.
Remittances from Filipino expatriates make up a significant portion of the national economy, accounting for about 9% of the country’s Gross Domestic Product (GDP).
This heavy reliance on remittances has shaped not only the economy but also the regulatory policies surrounding money transfers.
In 2023, remittances from the Filipino diaspora reached a record high thanks to a massive mobilization of relatives working abroad.
As reported by the Philippine News Agency, “personal remittances from overseas Filipino workers (OFW) amounted to $37.2 billion, up 3% from $36.1 billion in 2022.”
These money transfers primarily come from the diaspora community in the United States, Saudi Arabia, Singapore, Qatar, and the United Kingdom.
The Central Bank of the Philippines, known as Bangko Sentral ng Pilipinas (BSP), is the regulatory body that oversees money transfers.
The BSP ensures that transactions are secure and transparent, imposing strict rules to combat money laundering and terrorism financing.
It also requires that all money transfer entities be duly registered and comply with its guidelines.
The Philippine economy benefits from steady growth, partly stimulated by innovations in financial technologies that facilitate money transfers.
Digital currencies and electronic wallets are gaining popularity (like PESONet), offering alternative methods to traditional channels such as banks and money transfer agents.
According to the report from the National Strategy for Financial Inclusion (NSFI), there has been a clear progression in financial inclusion in the Philippines.
In 2017, only 23% of Filipinos had a bank account. By 2019, this figure had risen to 29%, and then to 56% by 2021.
However, to this day, many residents of the country remain isolated from this financial system and are unable to receive money from their loved ones.
Taxation Applicable to Sending or Receiving Money in the Philippines
Remittances from overseas Filipino workers (OFWs) play a crucial role in the economy of the Philippines, significantly contributing to the country’s Gross Domestic Product (GDP).
These funds are primarily sent through formal and informal channels to support families back home.
Sending and receiving money in the Philippines by the diaspora is subject to specific tax rules that depend on the amount transferred and the nature of these transfers.
For example, for money transfers originating from the United States, when you send money to the Philippines, it’s important to be aware of the tax implications associated with significant transfers.
If you send more than 250,000 PHP (approximately 5,000 USD), this amount may be subject to a 6% gift tax. This applies whether the donor resides in the Philippines or not. All transfers exceeding this threshold must be declared using the BIR Form 1800.
Funds received in the Philippines that also exceed 250,000 PHP are considered in the same manner and may be taxed at a similar rate of 6% if considered as a gift.
These regulations are intended to protect the financial system and prevent abuses, but they can also influence the costs and ease of money transfers.
At KimboCare, we emphasize the importance of being well-informed about these aspects, as it not only helps ensure hassle-free money transfers but also supports our mission to provide equitable and affordable access to services, such as healthcare, for those in need in the Philippines.
FAQ
How can I send health credits to loved ones in the Philippines?
You can start managing reliable healthcare access for your loved ones back home in a few easy steps:
- Visit app.kimbocare.com or download KimboCare’s free app from the App Store or Google Play.
- Select the country, medical facility, and health package(s).
- Add a beneficiary.
- Review your order and make your payment.
That’s it!
Your loved one can now visit the medical facility you selected and enjoy the care services while you track the usage and effectiveness of your gift from your tablet or smartphone.
How can I send money to the Philippines in the safest way possible?
To ensure the security of your money transfer to the Philippines, choose recognized services with robust security protocols. Always check user reviews and ensure that the service is regulated by competent financial authorities.
If you want to send money for health expenses, opt for recognized services with strong security protocols. Our platform ensures that each financial partner adheres to high security standards, ensuring that your funds reach your loved ones safely.
Are money transfers to the Philippines taxed?
Sending and receiving money in the Philippines by the diaspora is subject to specific tax rules that depend on the amount transferred and the nature of these transfers.
For example, for money transfers originating from the United States, if you send more than 250,000 PHP (about 5,000 USD), this amount may be subject to a 6% gift tax. This applies whether the donor resides in the Philippines or not. All transfers exceeding this threshold must be declared using BIR Form 1800.
Funds received in the Philippines exceeding 250,000 PHP are treated similarly and may be taxed at a rate of 6% if considered a gift.
How long does a money transfer to the Philippines take?
The transfer time can vary depending on the service used. Electronic transfers can be instant or take a few hours, while traditional methods like bank transfers may take several business days.
For urgent health needs, prefer services that offer instant or same-day transfers. Some platforms like KimboCare directly inform the patient via SMS or a call.
What are the typical fees associated with sending money to the Philippines?
Fees vary widely depending on the service chosen, the amount sent, and the payment method. Some services charge a percentage of the transferred amount, while others apply fixed fees. Look for options that offer full transparency on fees to avoid surprises.
Are there any limits on the amount of money you can send to the Philippines?
Yes, most money transfer services impose limits, which can vary depending on the transfer method chosen and the service regulations. Note that locally, your loved ones may also have bank withdrawal limits. It’s essential to check these limits before making a transfer, especially if you plan to send large sums for needs like covering medical expenses.
How can I ensure I get the best exchange rate when sending money to the Philippines?
Compare exchange rates offered by different services before making your transfer. Some services allow you to lock in a favorable exchange rate in advance or offer more competitive rates for higher amounts. Watch out for hidden fees that can affect the final amount received!
How can my loved ones in the Philippines receive money?
Recipients in the Philippines can receive money via direct deposits into their bank accounts, cash withdrawals at local service points, or even, for some services, home delivery. Make sure to choose a reception method that best suits your recipient in terms of convenience and safety.
For health credits, each credit purchased can then be gifted to your loved ones for access to quality care in authorized medical facilities.