The average cost of sending money overseas climbed to 6.49 percent in the first quarter of 2025 from 6.26 percent in the previous quarter, according to the World Bank’s Remittance Prices Worldwide (RPW) 2025 Report.
This figure is more than double the target set under the United Nations’ Sustainable Development Goals, translating into substantial losses for small and medium enterprises (SMEs) engaged in global trade.
This rising cost poses a critical challenge in the Philippines, where SMEs employ 63 percent of the workforce, according to The World Bank. Without intervention, rising costs could stall SME growth, limiting their potential to drive economic dynamism.
Financial technology company Payoneer said it is addressing this challenge by offering faster, more transparent and more affordable cross-border payment solutions.
“More and more SMEs across are choosing Payoneer as their trusted partner,” said Nagesh Devata, Payoneer senior vice president for APAC.
“We delivered 16 percent year-on-year revenue growth in the second quarter of 2025, with SMEs driving much of this momentum, ultimately reinforcing our role as the partner for cross-border growth,” he said.
The Bangko Sentral ng Pilipinas (BSP) acknowledges challenges in cross-border payments, including high fees, lack of transparency and slow processing times. For SMEs, these challenges can erode profits, disrupt cash flows and negatively impact their reputation, making it difficult to compete globally.
Payoneer addresses these issues with a financial stack tailored to help SMEs manage their financial operations and 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, helping to level the playing field for SMEs.
“Companies built for global work from the start are positioned to stay ahead,” Devata said, noting they are better aware of how expanding beyond their borders can benefit them by creating avenues to access new markets and customers, acquire skills and technologies, hire and retain talent, and achieve greater economies of scale.
Devata also pointed out that other challenges facing small-to-medium businesses (SMBs) 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 human resources 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.
“At some point, SMEs would face the challenge of scaling their companies into new markets,” said Monique Avila, Payoneer head of customer success for APAC.
She cited the example of entrepreneur Sherwin Alegre of Microsource Inc., who “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.
