OFWs can now remit dollars to their families at only $1 for every $200 transaction
Tacloban City (September 6) -- This is good news for the Overseas Filipino Workers (OFWs). They can now remit dollars to their families at a much cheaper dollar remittance fee of $1 for every $200 transaction, thanks to the National Cash Card Program (N-Cash) of the National Confederation of Cooperatives (NATCCO).
N-Cash is a card system which can be used for a "Card-to-Card remittance, prepaid cell phone loading and bills payment.
Through NATCCO's existing Internet facilities, cardholders could remit money to their families in the Philippines by only sending a text message. The maximum amount that can be remitted through the N-Cash is $2,000.
NATCCO has a cooperation agreement with the iPay Solutions which will be its technology partners for the implementation of the N-Cash program. The agreement allows NATCCO to use the payment platform developed by iPay to offer its member cooperatives and individuals basic financial services that are more easy and convenient to use.
Undertaken in coordination with the government-owned Development Bank of the Philippines and Senator Juan Miguel Zubiri, NATCCO's N-Cash Program was launched on September 4 at the Asian Institute of Management in Makati.
The remittances of OFWs are acknowledged as a key contributory factor to the economic growth. Bangko Central ng Pilipinas records show that last year, Filipino Overseas Workers sent about $12.8 billion to their families in the Philippines. However, it costs the OFWs about $1.7 billion in transaction fees to bring in the $12.8 billion based on the prevailing 13.5 remittance fee.
If the OFWs use the N-Cash, the $12.8 billion remitted last year will only cost $64 million. This will mean a savings of $1.663 billion for the Filipino Overseas Workers.
The N-Cash program will reduce the cost of dollar remittances from the prevailing rate of $27 per transaction to just $1 per transaction. (PIA 8) [top]