Increase in Domestic and International Remittances Along with Rising Income of Filipinos to Bolster Bill Payment in Philippines: Ken Research


Posted November 2, 2015 by kenresearch13

The report provides statistics on market size, transaction volume and number of transactions in Philippines Domestic remittance, bill payment and international remittance along with market share analysis and competitive landscape on the industry
 
Money remittances in the Philippines have been majorly used to make bill payments. In the year 2014, payment of bills was largely concentrated in the households of income group PHP 100,000 – PHP 249,999 and PHP 250,000 and above.

A major portion of the bill payments in the Philippines occur through the non-bank channel. The amount and frequency of bill payments for utilities has been considerably high in the country largely because of the high cost of electricity and water provision to an average Filipino. Utilities comprised of majority to the total bill payments in the Philippines in 2014. Bills paid for electricity services contributed a significant share in the total payments of utilities, followed by transactions for water and gas bills. Filipinos paid average bill amount of PHP ~ and PHP ~ as their water and electricity bills respectively, in 2014.

The competitive landscape of the bill payment market in the Philippines has been comprised of convenience and grocery stores, bill payment centers, biller’s offices, remittance companies, online and mobile payment services offered by money transfer companies, Telco’s, banks and other players. Convenience stores were responsible for ~% of the total bill payment volume in the Philippines in 2014. Such stores are scattered throughout the Philippines’ geography, with the majority of them operating 24 hours a day.

Owed to this greater reach and accessibility, convenience stores have dominated the bill payment landscape in the Philippines over the past many years. Bill payment through telecommunication companies along with online provision of bill payment services is in the nascent stage. Even though the penetration of the internet and mobile phones in the country remains high, Filipinos are yet to adopt this payment channel due to the availability of other alternatives. Bill payments made through cellular phones and the internet comprised ~% of the total market in the Philippines in 2014.

The demand in bill payment market has been largely inelastic and the providers have accustomed consumers in the Philippines to omit transaction fees for using remote bills payment services. In several cases, the service provider has charged the billing company for these services. Users of bank transfers, payment centers and informal services usually do not pay any amount to avail these services. Majority of the consumers in the Philippines use money transfer services offered by LBC Express, Cebuana Lhuilier and M Lhuilier, majorly based on the speed and quality of services offered by these players, while low transaction fee was one of the selection criteria for the consumers who opted to avail remittance services offered by other pawnshops.

The government of the Philippines plans to institute around 370,900 new household electricity connections each year until 2017. Similar to the Energy Reform Agenda that focuses on providing energy access for more Filipinos, the Department of Energy has devised a plan to accomplish 90% household electrification by 2017. This, in addition to the increase in the number of water connections, and mobile, internet and cable TV subscribers, is likely to result in a healthy demand for bill payment services in the Philippines. Furthermore, expansion of payment centers to the semi-urban and rural setting will also see the number of bill payment transactions increasing in the coming years. With an increasing cost of electricity in the country and larger utilization of mobile services, bill payments are expected to rise to USD ~ million by the year 2019. It has been estimated that the bill payment market of the Philippines will register a CAGR of ~% during the time frame of 2015-2019.

According to an industry veteran, “the bill payment market in the Philippines will witness significant growth in the coming years with the rise in personal disposable income of the population and an increased usage of services such as electricity, water, television, mobile and others.”

“While rising awareness about digital payments, boom in mobile technology and an increase in the preference for hassle free transactions will result in a significant up-rising of the payment industry, the large untapped rural population is one the few major challenges which will affect the growth of this industry in the future”, is according to the Research Analyst, Ken Research.

The report titled “Philippines Domestic and International Money Transfer Industry Outlook to 2019” is revised edition with historical data from 2009-2014 and future outlook from 2015 to 2019. The report provides detailed overview on the money transfer market and helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, remittance service providers (MTOs), banks, local agents and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Key Services Mentioned in the Report
International Remittance
Domestic Remittance
Bill Payments
Companies Covered in the Report
Banco de Oro
Bank of Philippines Islands
Philippine National Bank
Wells Fargo
Palawan Pawnshop
LBC Express
Cebuana Lhuilier
Western Union
M Lhuillier
Money Gram
iRemit
Xoom
Globe GCash
Smart Money

Related Reports:
India Domestic Remittance, M-Wallet and Bill Payment Market Outlook to 2018 - Driven By Government Support and Rising Banked Population
Malaysia Remittance Industry Outlook to 2019 - Driven By Increasing International and Domestic Migration
KSA International Outbound Remittance Industry Outlook to 2018 - Rising Remittances to India to Fuel Growth

Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]
+91-9015378249
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Categories Banking , Reports , Research
Tags bill payment growth driver philippines , future prospect philippines remittance , international remittance market philippines market share of major domestic bill payment , m lhuilier number of remittance philippines , philippines money transfer sector , remittance domestic market , remittance market share of major banks and nonbank channels global remittance market size , transaction volume remittance philippines
Last Updated November 2, 2015