Asia Pacific, which accounts for a third of the global migrant workforce, is likely to face remittance losses of $31.4-54.3 billion due to the coronavirus pandemic, the Asian Development Bank (ADB) said in a report.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances coursed through banks declined by 6.4 percent to $11.55 billion from January to May compared to $12.35 billion in the same period last year.
A global drop in remittances by migrant workers due to the coronavirus-induced recession will raise credit risk in countries most dependent on such inflows.
This tie up highlights Western Union’s efforts to strengthen presence in the Philippines, which has been recognized as the fourth-largest remittance recipient country in 2019 according to the World Bank.
With Mastercard Cross-Border Services, financial service providers can seamlessly process digital payments leveraging its global network through a single connection, the company said.
Migrant workers who lost their jobs because of the pandemic’s economic impact are running out of cash to send home, dealing a blow to the fragile economic health of the developing world.