MSMEs lose P39.5 billion annually due to expensive cross-border payments

Micro, small, and medium enterprises (MSMEs) in the Philippines are losing billions of pesos annually due to inefficient and expensive cross-border payment systems.

In 2024, MSMEs lost an estimated P39.5 billion primarily from foreign exchange markups charged by traditional financial institutions.

Despite these drawbacks, a significant portion of these businesses still use conventional methods for international transactions.

The need for better payment solutions is urgent, as two-thirds of local MSMEs anticipate an increase in their cross-border dealings in the coming months.

Fintech company Wise has introduced its Wise Business account in Manila to offer a more efficient alternative.

The Wise Business account enables businesses to receive funds in 24 currencies and send money internationally at the mid-market exchange rate with no hidden fees, often completing transfers in under 20 seconds.