Filipinos lost PHP 8.37 billion to hidden foreign exchange fees in 2023, Wise research reveals

Manila, March 10, 2025 – 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 realising 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 recognise 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.

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About Wise  

Wise is a global technology company building the best way to move and manage the world’s money.  

With the Wise Account, people can hold over 40 currencies, move money between countries, and spend abroad. Large companies and banks also use Wise technology, offering an entirely new network for international transactions. Founded in 2011, Wise is one of the world’s fastest-growing, profitable tech companies and is listed on the London Stock Exchange under the ticker WISE.  

In fiscal year 2024, Wise supported around 12.8 million people and businesses, processing approximately £118.5 billion in cross-border transactions and saving customers over £1.8 billion. 

Methodology 

YouGov: The survey was conducted online by YouGov during the period of 12-16 December 2024. It was responded to by a nationally representative sample of 1044 Filipinos aged 18 and above. The data was weighted by age, gender and region to reflect the latest Filipino population estimates.

EDC: This research, commissioned by Wise, is conducted by Edgar Dunn & Company between September and November 2024. The research analyses the cross-border payments landscape using a market sizing model, which leverages various data sources to project growth rates and allocate market size across different regions and customer segments. Additionally, hidden fees data is analysed to assess trends and identify areas of concern.

The 2023 hidden fee data from Edgar, Dunn, and Company (EDC) were calculated based on the exchange rate margin offered by the largest banks in the Philippines when their customers move money from the country. The data is in PHP (converted using the average exchange rate for USD/PHP for 2024) and expressed in millions. Fee data from 2024 to 2029 are projected based on expected GDP growth of the Philippines.