Filipinos unknowingly lost approximately PHP 8.37 billion to hidden foreign exchange (FX) fees in 2023, according to new research commissioned by Wise, the global technology company building the best way to move and manage money around the world.
The cost of remittances has long been a global concern, with the United Nations Sustainable Development Goal (UNSDG) aiming to lower fees to 3% by 20301. However, despite these global efforts, many Filipinos continue to pay excessive hidden fees when sending and receiving money internationally.
Hidden fees are costing Filipinos billions – without them realizing it
According to Wise, over 7 in ten (72%) Filipinos surveyed stated that they “somewhat” or “fully” understand international payment costs, yet only 1 in six (18%) fully recognize the impact of hidden FX markups. In fact, nearly 6 in ten (57%) Filipinos believe they understand the cost of payments but they actually don’t, while another 1 in four (25%) are unaware of the true costs of remittances.
Take this example: an international transfer of USD 10,000 (approximately PHP 578,000) advertised as “fee-free” could actually cost PHP 21,187 in hidden FX markups if a 3.6% margin is applied. While upfront fees are usually stated by providers, many providers tend to add an undisclosed markup on the exchange rate, instead of using the fair, mid-market rate (the rate typically seen on Google). This means consumers often end up paying more than expected.
The findings, drawn from independent studies by Edgar, Dunn & Company (EDC) and YouGov, emphasise the need for greater fee transparency in cross-border payments, and better consumer awareness of hidden fees.
Who pays the price?
Hidden FX fees disproportionately impact Filipinos with cross-border financial needs, including parents sending funds for overseas education, overseas Filipino workers (OFWs), gig economy workers, and their families. OFWs send billions of pesos home each year, but FX markups mean their families receive less than intended, affecting essential expenses like food, education, and healthcare.
With over 1.5 million gig economy workers2 and nearly 2 million OFWs3, cross-border payments are a crucial lifeline for many Filipinos. As digital financial services become more widely used, it’s more important than ever to ensure transparency in international transactions.
The impact of hidden fees is felt by many Filipinos, including Gamaliel Natividad, a self-employed freelancer, who shared his experience, “As a freelancer, I rely on international payments to receive money from my clients abroad, and I used to receive payments through traditional providers. But I constantly felt like I was losing out due to hidden fees and poor exchange rates. The amount I received was always less than expected because of the markups I didn’t even know existed. Since switching to Wise, I no longer worry about hidden charges eating into my payments. The mid-market exchange rate and transparent fees mean I get more of the money I’ve earned. It has saved me both time and money, especially when managing payments from international clients.”
This story highlights a larger issue facing many Filipinos, underscoring the need for greater transparency and affordability in international payment solutions.
Call for greater transparency across the industry
The research findings reinforce Wise’s continued global fight against hidden fees in foreign exchange transactions, in line with the Bangko Sentral ng Pilipinas’ (BSP) rules for fair and transparent pricing, which calls on all providers to:
Provide a clear breakdown of the costs associated with every transaction
Show the foreign exchange mark-up or the difference between the prevailing Bangko Sentral reference/guiding rate and the exchange/conversion rate
Stop using misleading terms like “free” and “0% commission,” which often hide extra charges or markups in the fine print
Areson Cuevas, Country Manager, Wise Philippines, said, “At Wise, transparency isn’t just a promise – it’s built into how we operate. We ensure customers know exactly what they’re paying upfront, so they can make informed choices and get the most value from their money. The Philippines already has a solid regulatory framework in place to support transparent remittance pricing. By fully aligning with these rules, the country could unlock PHP 8.37 billion for the economy, benefiting families, businesses, and the broader financial system. Being transparent on fees is a small action that can have a huge benefit for Filipinos.”
Wise’s commitment in the Philippines
Wise has been expanding its presence in the Philippines to provide more transparent and cost-effective international payments. Since launching the Wise Account and Prepaid Card in May last year, Filipinos have been able to send, receive, and spend in over 40 currencies at the mid-market exchange rate (the rate that you’ll usually see on Google) —without hidden fees.
To further improve access, Wise has integrated with InstaPay, enabling instant PHP transfers of up to PHP 50,000. Larger transactions are usually processed within 24 hours, ensuring faster and more affordable cross-border payments. Additionally, the introduction of PHP Account Details allows Filipinos to receive local PHP payments directly into their Wise account without needing a traditional bank account.
These developments reflect Wise’s commitment to making international payments simpler, fairer, and more transparent for Filipinos.
