Wise, a global payments and remittance app, is optimistic about capturing a significant share of the Filipino market due to its remittance fee of less than 1 percent.
Wise stated that the company applies a 0.59 percent remittance fee, with zero hidden charges and a mid-market foreign exchange (FX) rate for customer transactions.
In a media briefing on Monday, Wise co-founder Kristo Käärmann highlighted that the firm's remittance rate is already far lower than the United Nations’ recommendation of 3 percent by 2030, down from the current industry average of 5 to 6 percent.
Unlike Wise's mid-market FX rate, many other firms charge higher exchange rates, leading to financial losses among Filipinos amounting to ₱8.37 billion in 2023. Wise projects that these losses could balloon to ₱23 billion by 2029, according to Wise Philippines manager Areson Cuevas.
"We ensure customers know exactly what they’re paying upfront, so they can make informed choices and get the most value from their money," he said.
Käärmann explained that Wise is able to reduce fees due to its growing global customer base and efficient technology that facilitates fund transfers across 40+ currencies.
To illustrate the impact of hidden high FX rates, a customer transferring $10,000 (approximately ₱578,000) could lose ₱21,187 if a 3.6 percent margin is applied by a traditional bank.
With its affordable and transparent service, Cuevas said Wise aims to attract a substantial share of the 2 million+ overseas Filipino worker (OFW) families and 1.5 million+ freelancers in the country.
Based on a study commissioned by Wise, the majority or 72 percent of Filipinos said they are only "somewhat" aware of hidden fees for global transactions.
In 2024, Wise registered over 13 million customers, processed £118.5 billion in cross-border transactions, and saved customers £1.8 billion in fees.
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Founded in 2011, Wise is listed on the London Stock Exchange. It expanded into the Philippines in May 2024, securing a Bangko Sentral ng Pilipinas (BSP) license as an electronic money issuer.
In November 2024, Wise integrated InstaPay, the Philippines' fast electronic fund transfer system. The following month, it launched PHP Account Details, allowing freelancers to receive payments in Philippine pesos without service fees or requiring traditional bank accounts.
According to the Philippine Institute for Development Studies (PIDS), firms employing Filipino freelancers experienced a 208 percent revenue growth from 2018 to 2020.
