US dollar bills are seen at a money exchange office. — REUTERS

OVERSEAS WORKERS sending funds back to home countries in the Asia Pacific expect to cut down on their remittance over the next 12 months, with remittance recipients in the region also expecting a drop-off, according to Visa, Inc., citing the results of a survey.

Visa noted all countries surveyed in the Asia-Pacific showed a decline in expectations to send/receive remittances over the next 12 months.

Visa surveyed 44,000 remittance senders and receivers from 20 countries, including the Philippines.

Only 7% of Filipino respondents said they expect to send remittances over the next 12 months, while 44% expect to receive remittances.

In May, cash remittances coursed through Philippine banks rose 2.9% year on year to $2.658 billion.

This was the lowest level of monthly remittances since May 2024.

Within the Asia-Pacific, China posted the steepest expected remittance decline, with those expecting to remit funds at 26%, down 25 percentage points, and those expecting to receive at 21%, down 15 percentage points.

The corresponding figures for Japan were send 3%, receive 4%; India send 18%, receive 28%; and Australia send 25%, receive 22%.

In the Philippines, 41% of respondents said they sent or received remittances due to unexpected needs, while 39% reported receiving regular remittances.

Digital apps remained the most popular method to send or receive remittances in the Asia-Pacific. In the Philippines, 74% of senders and 66% of receivers cited a preference for digital apps.

“In all markets surveyed, second to digital apps (were) digital remittances from a physical location,” Visa said. — Aaron Michael C. Sy

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