GCash, a financial technology app backed by Globe Telecom, has introduced a new feature allowing Filipino freelancers to receive payments and remittances in US dollars directly into their e-wallet accounts without the need for a US-based bank account and incur additional fees and charges.
The new feature promises reduced platform fees and forex costs, allowing gig workers to have bigger take-home pay, and enabling all Filipinos to maximize the remittances they receive, according to GCash.
The mobile wallet said the new service also addresses a persistent concern of Filipino freelancers who often lose a portion of their income to costly fees, which reduces their take-home pay and delays access to funds they rely on for daily expenses.
GCash said the Virtual US Account likewise eliminates high withdrawal fees and hidden charges.
“With the GCash Virtual US Account, GCash users can hold US dollars and only convert to Philippine pesos when they need to. This enables them to avoid unnecessary fees and convert their money at their most favorable time,” said GCash general manager for International Paul Albano said.
GCash said with the new service, its users can instantly receive transfers from the US right into their e-wallet, giving them immediate access to their US dollar funds, which can then be converted into Philippine pesos “at competitive exchange rates — all within the GCash app.”
Fully verified GCash users are eligible for account opening, it said.
GCash said the new feature is seen to boost inflows of dollars into the country from the US, which is a top remittance source for the Philippines.
According to the Bangko Sentral ng Pilipinas, about 40% of cash remittances from January to August this year came from the US.
GCash said the Virtual US Accounts are issued and maintained by Meridian Payments US under a “for benefit of” arrangement, adding “these are not bank accounts and do not qualify as deposits; hence, they are not covered by any deposit insurance schemes.” —VAL, GMA Integrated News