RIYADH – In a move to lower the cost of remittances to Philippines from the Middle East, thus facilitating a full receipt of funds to beneficiaries, Xpress Money global money transfer unveiled Wednesday “No back-end charges” on any transaction to the Southeast Asian country. According to World Bank, the global average cost for sending remittances in the first quarter of 2013 was at 9.05 percent. Thus for every PHP 20,000 a migrant worker remits, the cost for transferring this would amount to a steep PHP 1,810. The cost of these transactions includes currency conversion margins as well as processing fees or “back-end charges” that are shouldered by the receiver, thereby reducing the total amount that they would collect. This most notably affects families of migrant workers who rely on remittances for financial support. Xpress Money said the decision to not levy back end charges was driven by its continuing endeavor to support and help Overseas Filipino Workers (OFWs) remit their hard earned income to their loved ones back home. This would negate the high costs OFW's pay each time to remit money, thus helping them utilize the full value of the remittance, towards the upkeep for their families. “We recognize every OFW's sacrifice to work abroad in pursuit of helping uplift the lives of their families. We know that every hard-earned peso counts,” said Sudhesh Giriyan, Vice President and Business Head of Xpress Money. “As part of our commitment to support Filipino migrant workers worldwide, we process remittances without back-end fees so their families receive the full amount of what they intend to send.” Every year, over 1.5 million OFWs send money back to their families and beneficiaries in the Philippines. In a recent report, Bangko Sentral ng Pilipinas (BSP) said for the first quarter of 2013, remittances grew by 5.57 percent to $5.1 billion from last year's $4.8 billion. By the end of the year, BSP expects remittances to grow by 8 percent to top last year's $23 billion year-end total. Xpress Money processes remittances from the Middle East without back-end charges, which allows OFWs and their families to save a significant amount of at least P125 per transaction. This does not only allow them to increase their purchasing power, but also provides them the opportunity to direct more of their remittances toward savings and investments. Giriyan further added that through Xpress Money's no back-end charge services, OFWs will also be encouraged to send their remittances through recognized Xpress Money partner agents instead of choosing unregulated and unaccredited channels. About 30 to 40 per cent of the total remittances across the region are coursed through backdoor channels, as reported by the Asian Bankers Association, which exposes customers to the risk of fraudulent transactions. “Having no back-end fees greatly benefits our dedicated OFW customers, and especially their families by making transactions safer, accessible and most of all, affordable,” he noted. — SG
