The average cost of sending money overseas climbed to 6.49% in Q1 2025, up from 6.26% in the previous quarter according to the World Bank’s Remittance Prices Worldwide (RPW) 2025 Report[1]. This figure is more than double the target set under the UN’s Sustainable Development Goals which translates into substantial losses for Small, and Medium Enterprises (SMEs) engaged in global trade[2].
This challenge is critical in the Philippines, where SMEs employ 63 percent of the workforce, according to The World Bank[3]. Without intervention, rising costs could stall SME growth in the Philippines, limiting their potential to drive economic dynamism and resilience. This highlights the need for faster, more transparent, and affordable solutions—a gap that Payoneer bridges.
“More and more SMEs across are choosing Payoneer as their trusted partner,” said Nagesh Devata, Payoneer SVP for APAC. “We delivered 16% year-on-year revenue growth in Q2 2025, with SMEs driving much of this momentum, ultimately reinforcing our role as the partner for cross-border growth.”
Breaking Down the Financial Barriers to Global Trade
Bangko Sentral ng Pilipinas (BSP) acknowledges challenges in cross-border payments including high fees, lack of transparency, and slow processing times[4]. For SMEs, these challenges can erode profits, disrupt cash flows, and negatively impact their reputation and credibility, making it difficult for them to compete globally.
Payoneer addresses these challenges by offering a financial stack that is tailor-made to help SMEs manage their financial operations and ultimately simplify international transactions. Its multi-currency receiving accounts allow Filipino businesses to receive payments globally as if they were a local entity in that country, bypassing expensive wire transfers. This makes receiving payments faster and easier, leveling the playing field for SMEs.
Expanding Market Reach and Enhancing Operational Efficiency
“Companies built for global work from the start are positioned to stay ahead,” said Devata. “They’re more aware of how expanding beyond their borders can benefit them, creating avenues to access new markets and customers, acquire skills and technologies, hire and retain talent, and achieve greater economies of scale,” he adds.
Devata also points out that other challenges that SMB faces include friction from hiring in a foreign country and a lack of support in legal, regulatory, compliance, and tax issues when navigating these markets. To address these, Payoneer acquired Skuad in 2024 to equip SMEs with Employer of Record (EOR) capabilities across more than 160 countries—streamlining compliance, payroll, and local HR administration.
With these business-grade features and a secure platform, Payoneer empowers SMBs to reach new markets, manage global operations, and grow across borders with greater ease, reliability, and confidence.
Contribution to the Broader Philippine Economy
Payoneer strengthens the Philippine economy by giving SMEs a faster, more affordable way to handle international payments, helping them bypass costly, traditional methods and seize global opportunities with confidence.
“At some point, SMEs would face the challenge of scaling their companies into new markets,” said Monique Avila, Head of Customer Success for APAC. “Entrepreneurs like Sherwin Alegre of Microsource Inc. once struggled to scale globally without the right infrastructure for international transactions. By partnering with Payoneer, he gained the tools to boost efficiency, focus on innovation, and expand across Southeast Asia.”
By giving businesses access to tools and new markets, Payoneer enables a more resilient and globally competitive class of SMEs, positioning the Philippines to capitalize on the digital economy and achieve a new level of economic growth.
[1] The World Bank. (2025). Remittances Prices Worldwide Quarterly. https://remittanceprices.worldbank.org/sites/default/files/rpw_main_report_and_annex_q125_1_0.pdf
[2] United Nations Statistics Division. (2025). SDG Indicators: Goal 10. In 2025 Sustainable Development Goals Report. https://unstats.un.org/sdgs/report/2025/Goal-10/
[3] World Bank. (2025). Philippines Economic Update, June 2025: Small Business, Big Impact – Catalyzing Philippine Growth. © World Bank. http://hdl.handle.net/10986/43395 License: CC BY-NC 3.0 IGO.
[4] Bangko Sentral ng Pilipinas Finalizes Blueprint for Cross-Border Payment, The Philippine Star (2024). Retrieved from https://www.philstar.com/business/2024/01/25/2328250/bsp-finalizes-blueprint-cross-border-payme
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