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Money Remittance Methods in the Philippines: Which Option Is the Best for You?

A Filipina Researching the Pros and Cons of Different Money Remittance Options in the Philippines



It’s not uncommon for many Filipino households to regularly use money remittance services. After all, more than a million overseas Filipino workers worldwide are employed in jobs ranging from construction to healthcare. These OFWs are often hailed as modern-day heroes due to their contribution to improving the country’s economic growth through the money they remit to their families.


If you are an OFW or are related to one, what money remittance service do you usually use? Do you think it meets your needs, or are you looking for other options but aren’t sure which one is best for you? Continue reading as Cebuana Lhuillier discusses the pros and cons of different money remittance solutions in this post.


The Need for Money Remittance in the Philippines 


Did you know that the Philippines is among the top countries receiving the highest remittance inflow? This is good news because money remittance is important for various reasons. Particularly in low and middle-income nations, it is a significant contributor to the economy and has been shown to positively impact poverty, nutrition, and school enrollment rates.


In the Philippines, money remitted by OFWs helps improve the standard of living of their families back home. These transferred funds cover living expenses like rent, food, and utilities. Some also allocate these funds for savings or are used as capital for starting businesses.


Comparing Common Money Remittance Options 


Because there are multiple ways to send money, it’s good to compare each option to help you pick which would benefit you the most. Remember that there is no best money transfer solution as this will differ from person to person. Below, we’ve listed the pros and cons of some of the most common money remittance options in the Philippines:


Electronic Wallets 


Electronic wallets are a type of software that allows users to store and use their money digitally for different purposes, such as paying bills and shopping.


The benefits of using electronic wallets for money remittance are:


Convenient – Electronic wallets provide a hassle-free and timesaving means of sending money because there’s no need to leave your house and carry a wallet containing physical cash. You can easily send funds from your home with just a few clicks if you have an internet connection.


Cost-Effective – Because electronic wallets allow you to send money digitally, you don’t have to spend on transport expenses to remit funds. Usually, there are no transfer fees if you send money to another person using the same electronic wallet application.


Readily Available Funds – When you transfer money to another person’s electronic wallet, the funds become readily available for the recipient. They can immediately use the money sent to pay bills, purchase different goods, or even remit to another person.


The drawbacks of using electronic wallets for money remittance are:


Technical Issues – Sometimes, users cannot use their electronic wallets to transfer cash due to scheduled system activities, unexpected software downtime, device malfunctions, or even power outages.


Relies on the Internet – One of the main cons of using digital wallets is their dependence on an internet connection, making them an unviable option for users in remote areas with zero or low internet connection.


Need To Be Tech-Savvy – Elderly users often have difficulty navigating technological devices, so using electronic wallets may be challenging for them to send or receive money.


Bank Transfers 


Bank transfers refer to the delivery of funds from one bank to another.


The pros of using bank transfers for money remittance are:


Safe and Secure – One of the main advantages of using banks to remit money is security. Banks are financial institutions regulated by governing bodies; they often utilize various security measures to ensure the money is safely transferred to the correct recipients.


No Transfer Fees – It’s often free to send money to another account if the sender and recipient use the same bank. Thus, there’s no need to think about extra fees when remitting money through this method.


Convenient – Bank-to-bank transfers are now hassle-free ways to transfer funds due to online banking options provided by different banks. Once you have enrolled your account in your bank’s online service, you can start conducting transfers with just a few clicks in the comfort of your home.


The cons of using bank transfers for money remittance are:


Long Lines – If you prefer going to a bank in person for money remittance, you will most likely spend a long time lining up before you reach the counter.


Scheduling – Banks are closed on weekends and holidays. This makes visiting a bank to conduct a money transfer on those days impossible. You must also do your transaction within banking hours.


Claimant Needs To Have an Account – You cannot conduct a bank-to-bank transfer if either you or the recipient does not have a bank account. In other words, this may not be a viable solution for people who aren’t account holders.


Money Remittance Centers 


Money remittance centers are service providers that enable people to remit money domestically and internationally.


The advantages of using money remittance centers for money remittance are:


No Need for Internet Connection – Money remittance centers in the Philippines provide a way for Filipinos who do not have access to Wi-Fi to still be able to send and/or receive money, particularly those who live in far-flung areas.


User-Friendly Option for Older People – Older people usually have difficulty using online banking services or electronic wallets. Thus, remittance centers make it possible for them to send money easily.


Offers International Remittance – Money remittance centers allow users to send and receive money from abroad, unlike other methods, such as electronic wallets, where some options are not able to transfer money internationally.


The disadvantages of using money remittance centers for money remittance are:


Need To Remit in Person – You must physically visit the money remittance center to send money to another person. This means making time to walk or drive to the remittance center branch nearest you.


Transfer Fees – Expect to pay a transfer fee every time you go to a remittance center to transfer funds. This will depend on the amount you want to send and the region where you’re located.


Cebuana Lhuillier: Your Trusted Money Remittance Partner 


The money you remit is the fruit of your labor and work, so it’s a must to partner with a trusted remittance service provider like Cebuana Lhuillier. As one of the best remittance centers in the Philippines, we offer easy and fast remittance services to Filipinos here and abroad.


Given Cebuana’s more than 3,000 branches nationwide, our Pera Padala service is a widely accessible money remittance solution for Filipinos to send and receive cash. We also have a broad list of international remittance partners for quick and secure money transfer services from abroad to the Philippines. Moreover, through the e-Cebuana app, micro savings account holders can easily send money digitally to banks and other micro savings accounts.


We have also collaborated with various international remittance partners to make it more convenient for Filipino workers and immigrants abroad to help their families back home.


Our customer support staff is always at hand to answer your queries about money remittance or any of our other services. Contact us today!