Many Filipinos went abroad to work with their parents since they were young, and when they grew up, they followed the life of their parents and became second-generation Filipino workers. More than half of their income would be sent to their relatives in the Philippines. There are many similar countries like Nepal, Pakistan, India, and so on.
However, because COVID-19 broke out in almost every corner of the world, many people have lost their jobs due to it. Without a job, they don’t have an income, and lots of them are forced to return to their home country. This has put many people in developing countries who rely on remittances for their basic lives into a more impoverished situation.
According to the World Bank, the total remittances of overseas workers in 2019 reached 554 billion U.S. dollars, surpassing all foreign direct investment in low- and middle-income countries, and more than three times the development assistance of foreign governments. However, due to the impact of the pandemic, the World Bank stated that the total remittances to developing countries this year may drop by a record 20% to 445 billion US dollars!
In the past when the economy was in a recession, overseas Filipino workers sent more money home to support their families. From 2007 to 2009, even in the financial crisis, remittances to the Philippines increased by 21%. However, almost no country can escape the huge impact of COVID-19.
However, the latest remittance report also pointed out that the pandemic may have a positive impact on these home remittances in the long term. Because banks are also under attack, online remittance has now become the most popular remittance method.
In fact, online remittance has become a more economical and convenient way of remittance beyond banks, thanks to the development of financial technology. Without going out, only to have a smartphone or computer, one can complete a cross-border remittance with less money.
Many online money transfer companies have gained double users during the pandemic. Epay.com In addition to providing remittance services to foreign users, Epay also opened an exclusive remittance channel for overseas Chinese this year. It supports most domestic banks and allows those who work and live abroad could pass the love to the family in time.
