Seamlessly transfer money across borders without any hassle and enjoy the freedom to manage your finances your way by joining new remittance systems today.
International money transfers serve various purposes, and their impact on low and middle-income countries has been well documented. Studies have shown that international remittances can make a significant impact in reducing poverty in low and middle-income countries, uplift living standards and promote social development. In addition, foreign remittances allow small and medium-sized enterprises to expand their customer base to an international audience.
The United Nations’ Sustainable Development Goals indicator aims to reduce transaction costs for migrant remittances to under 3% and eliminate remittance corridors with costs exceeding that threshold. By doing so, the goal is to tackle inequality among nations and promote economic growth and prosperity.
GOING CROSS-BORDER
Anyone, regardless of nationality, can invest in the Philippines with up to 100% equity. A business with 60% Filipino equity is considered a Philippine company, while one with more than 40% foreign equity is considered a foreign-owned domestic company.[1]
MEET MONEY WITHOUT BORDERS/ GATEWAY PAYMENT
Payment gateways serve as the digital equivalent of cash registers in the online world, facilitating electronic transactions for E-commerce. These systems are designed to process customer information, enabling secure transactions between merchants and customers’ banks. Their core function revolves around streamlining the payment process, ensuring that transactions are handled smoothly, quickly, and efficiently. Payment gateways are essential components of the modern digital economy, providing a reliable and secure means of processing online transactions. (E.g. Dragonpay, Gcash, Paymaya)[2]
MARKET SYNOPSIS
Digital payments have become increasingly popular in recent times as a means of financial transaction and have emerged as an essential mode of payment. The rapid advancements in technology have led to a shift in the efficiency of payment gateway platforms, and this has resulted in the emergence of novel modifications. As a consequence, the economy stands to benefit significantly from these advancements.
However, the payment gateway market faces major challenges due to the growing number of cybersecurity issues. With more people opting for online and digital payment methods, the requirement to share their account details on the payment portal has increased. This has led to an increase in the risk of cybercrime, with malicious elements and hackers exploiting vulnerabilities in the system. These factors are expected to impede the growth of the market in the coming years.
Nevertheless, the regional market analysis predicts significant growth in the Asia-Pacific market during the review period, making it a potential market for further exploration.[3]
It is best to consult with a Philippine-based law firm that specializes in financial – technology (FinTech) industries to streamline the burden of establishment and utilize profitable opportunities.
BENEFITS OF FOREIGN INVESTMENT
Foreign direct investment (“FDI”) provides benefits for both the investor and the host country.
Below are some of the benefits for businesses:
- Market diversification
- Tax incentives
- Lower labor costs
- Preferential tariffs
- Subsidies
The host country can benefit from FDI in various ways. These benefits include economic stimulation, development of human capital, increase in employment opportunities, and access to management expertise, skills, and technology. On the other hand, businesses can reap benefits from FDI by cutting costs and reducing risks.
The Philippines has made notable strides in improving its FDI climate in the past decade. The current government’s focus on boosting the Filipino economy is expected to continue to bring about incremental improvements in the coming years. As a result of these changes and other enhancements, such as stronger protections for minority investors, the Philippines has climbed 29 rankings in the World Bank’s ‘Doing Business 2020’ report from the 2019 rankings.[4]
Written by: Jawaher Macalangcom
[1] Republic Act No. 7042, amended by Republic Act No. 8179.
[2] https://www.investopedia.com/terms/p/payment-gateway.asp retrieved on 12 January 2024.
[3] https://www.researchdive.com/8495/payment-gateway-market retrieved on 12 January 2024.
[4] https://corporatefinanceinstitute.com/resources/economics/foreign-direct-investment-fdi/
on 12 January 2024.
