I understand sending PHP home, but why as base currency or even… why a PHP balance? can “parents” actually send PHP here? is it legal to have PHP currency accounts outside the Philippines? notice INR was (silently) removed recently for that reason
Always fun in the Philippines .
That is a rather unlikely number ;).
I will provide an example, the highest number of Philippine OSW reside in Saudi Arabia, at approx. 24%. Of the 2.2million worldwide, that equates to approx. 500,000.
In Saudi Arabia all salaries must, by law, be paid electronically into a bank account. However despite this approx. 70% of Filipino OSW use the services of one company called Enjaz (rather like Western Union but with better exchange rates than WU and retail banks etc).
The OSW use Enjaz to send their remittances back to the Philippines. It’s a pain, withdraw money from bank take to remittance shop, but they do because every penny counts. So in Saudi Arabia over 350,000 Filipino expats use the services of just one company. If Revolut was available in Saudi, I am confident there would be a large switch from Enjaz to Revolut as it would be easier to use and would provide a better deal. I am sure the same would be true within Europe.
The PHP account would be used to send remittances back to the Philippines, which with a Revolut account is currently not possible.
$33 billion worldwide remittances were sent back to the Philippines in 2017.
I agree with Sal. There are a lot of Filipinos working in the EU as well. Some use Transferwise to send money to the Philippines, some still use the traditional remittance centres. Imagine if all will be using Revolut to remit money. I don’t know how good of a business opportunity this would be for Revolut but the more users and transactions, the better I guess?
Adding other new currencies before adding all EU/EEA ones it will be ridiculous…
local currencies with local collection accounts for all “supported” countries is a basic but still neglected by and should be addressed before any further expansion imo
It’s not that easy. I’d love PHP as well as MXN cos practically I’m living in both. I think MXN was available before
The problem is that revolut aim to have users that use the card locally. If everyone would just send money with SWIFT then wouldn’t be reliable.
And I don’t think Filipinos have a problem holding cash. The Philippines is a very cash based nation, they’re used to it. And even WU is cheap to send there
The other problem, as I said, it would be at the second point, the receiver. They’re cash based. They like to go to Palawan Pawnshop to get the money
And base currencies are currently available only for EEA currencies, aka residents.
In the Philippines, yes this is very much the case at the moment, however this situation will change in the not to distant future, with the government actively promoting moving away from a cash based society.
The intention is for 20% of transactions in the Philippines to be electronic by 2020. This is very much on the agenda as Duterte’s’ government seeks to crack down on tax evasion and ultimately, put an end to corruption.
Similar model to that which is being implemented in India under Modi.
I am sure Revolut is working on a business model where they get in first and not after the party has begun!
I wonder how Phil gov will try to achieve those 20% ? I think its unrealistic to change ppl mindset on such short time.
They can’t. If you need cash on a payday then you have to book your “stand up waiting” in advance :))
The other problem is that banks in FEElippines have high fees for both personal accounts as well as merchants.
So it’s discouraging merchants to get a POS or accept any payment by card. They will frequently tell you that the minimum is 500₽ for example so at least “it worth”.
I gave up opening an account after I’ve studied the fees but in December I’ll have to
Strange tactic by banks. If they want to really attract ppl they should start by offering their service for free/very low cost - and then after few years start to rise prices. Happened in my country - after some innitial time year by year slowly banks rise prices/worsen deals and most ppl (their clients) don’t even notice and keep using same banks.