As we move through 2025, many households in East Asia and the Pacific (EAP) continue to depend on a steady and resilient source of financial support: cross-border transfers—money sent by family members working abroad. These transfers are a critical link between migrant workers and their families, especially as economic shifts prompt more people to seek work in cities or overseas. With rising education levels and urbanization, it is increasingly common for individuals from rural or smaller towns to pursue better-paying jobs in larger cities or foreign countries.

A Pillar of Household Support
For countries such as the Philippines, Vietnam, Indonesia, and smaller Pacific Island nations like Tonga and Samoa, cross-border transfers are not just a financial boost—they are a backbone of household resilience. In some economies, these transfers contribute over 10% of GDP, enabling families to cover basic needs, pay for education, and afford healthcare. With food prices still high in early 2025 and job markets recovering slowly from last year’s inflation-driven downturn, these flows remain essential.

In the Philippines, for example, cross-border transfers have helped cushion the effects of a weakening peso and high interest rates. In Pacific island nations where climate-related disruptions and declining tourism revenues have created funding gaps, these transfers have proven to be a crucial financial buffer, according to data from the World Bank and other regional sources.

Resilience Amid Global Headwinds
In 2025, global events such as ongoing conflicts in the Middle East, high oil prices, and tighter monetary policy in the US and Europe have posed challenges for migrant-hosting economies. Still, cross-border transfers to EAP countries have largely held steady. Migrant workers have adapted by reducing discretionary spending, working longer hours, or shifting into more stable sectors like healthcare and logistics.

However, growth has varied. Transfers from Japan and South Korea declined slightly due to labor shortages and inflation, while flows from Gulf nations remained strong, driven by labor demand and large-scale infrastructure projects.

Digital Channels Dominate in 2025
One of the most significant trends in 2025 is the increasing use of digital platforms for cross-border transfers. Real-time mobile apps and digital wallets are rapidly replacing traditional cash-based systems, particularly among younger migrants and urban recipients. This shift—accelerated by the COVID-19 pandemic—has continued due to improved user experience and better access to mobile technology.

In Indonesia and the Philippines, for example, cross-border transfers via e-wallets have surged by over 30% this year. This growth is supported by rising smartphone usage and streamlined digital KYC (Know Your Customer) regulations, which make onboarding easier and more secure.

Still, challenges remain in rural areas where older populations and limited internet access hinder digital adoption. Many families continue to rely on cash pickups, which are often more expensive and less secure.
Affordability and Access Still a Challenge
Despite progress in digital infrastructure, affordability is a persistent issue. As of 2025, the average cost of sending cross-border transfers to the EAP region is about 5.8%—nearly double the UN Sustainable Development Goal target of 3%. The highest costs are often in corridors involving small Pacific nations, where limited competition and weak financial systems drive up fees.

Access is another barrier. Many migrant workers operate in informal sectors or lack proper documentation, making it difficult to use regulated digital services. Similarly, recipients in remote areas may face obstacles like poor connectivity or limited digital literacy.

What Needs to Happen Next
To enhance the impact and inclusivity of cross-border transfers in 2025 and beyond, coordinated action is needed from policymakers, financial institutions, and technology providers. Key priorities include:

Empowering people with the knowledge and tools to use cross-border transfers effectively can help turn this income into long-term economic opportunity—through savings, investments, and entrepreneurship.

In a year marked by economic challenges, cross-border transfers remain a vital link between families and financial stability. For millions across East Asia and the Pacific, they represent more than money—they provide hope, resilience, and the opportunity for a better future. The task ahead is to make sure every dollar sent can reach its full potential.