The oldest pawnshop in the Philippines is Tambunting. It started by collecting garbage from the busy streets of Manila onto its fleet of horse carriages in the 18th century. Today, it collects gold and provides remittance services. It has come a long way from earning five centavos for every can.
Much like the other players in the pawnshop industry, Tambunting continued to diversify its product and service offerings to include financial services such as remittance, loans, and insurance to support the expanding needs of its customers.
Pawnshops in the Philippines are similar to a sari-sari store or warong, a convenience store that sells a variety of products and services.
Growing at a faster pace than banks and with a more extensive network, there are more pawnshops in the Philippines than all the banks combined as of 2020, according to the Bangko Sentral ng Pilipinas (BSP).
Pawnshops & Remittances In The Philippines
World Bank data showed that around 2.2 million Overseas Filipino Workers (OFWs) working abroad sent USD 35 billion to the Philippines in 2020. The Philippines receives the majority of its remittances from the United States, Saudi Arabia, Singapore, Japan, United Kindom, UAE, and Canada, to name a few.
BSP's latest financial inclusion data showed that pawnshops and money service businesses (MSBs) were the top remittance channels used by Filipinos. Over 90% of the population has used pawnshop for international and domestic remittances. The second trailing option was banks, physical delivery, and ATMs with less than 5%.
In a country where over 71% of the total population remains unbanked, pawnshops will continue to play a crucial role in facilitating pera padala or remittances because of their extensive network that serves as financial access points.
Recognizing the importance and robust pawnshop network, many banks and money transfer operators (MTO), also known as cross-border money transfer service providers such as WorldRemit, Xoom, and Wise, have signed partnership agreements to facilitate a smooth transfer of funds.
When it comes to international remittances, the money transfer is usually initiated through banks, money transfer service providers, or even physical money transfer agents. The beneficiary in the Philippines collects the money from the pawnshops in the Philippines.
The option is especially great if your recipient does not have a bank account or is in an area with low connectivity. We have listed the top 5 pawnshops in the Philippines to redeem remittances sent from the United States.
M Lhuillier has one of the most extensive pawnshop networks in the Philippines. It is pretty much the go-to for most Filipinos looking to get cash by pawning their valuables.
Its remittance service, famously known as Kwarta Padala, is known for its convenience and real-time cash availability that makes sending and receiving money from overseas easy and quick.
While there are no M Lhuillier outlets in the U.S, you can still send money online from the U.S. through your bank or an online money transfer operator that has partnered with M Lhuillier. Your recipient in the Philippines can claim the remittance in any M Lhuiller outlets. There are close to a hundred international remittance partners of M Lhuillier. Here are the popular partners of M Lhuillier in the U.S.:
Cebuana Lhuillier is often confused with M Lhuillier, but they are different business entities. Cebuana Lhuillier's Pera Padala service is an easy, quick, and safe way to claim money sent from the U.S.
The process of claiming money sent from abroad is relatively standard. As soon as you complete the remittance process, your recipient in the Philippines may claim the money in one of their 2500 branches available nationwide using the reference code.
Cebuana Lhuiller has also partnered with Moneygram and Western Union to facilitate outward remittance from the Philippines. It is one of the few pawnshops that cover both - sending to and receiving money from the United States.
Through Cebuana Lhuillier, US dollar payouts are also available in certain standalone pawnshops of Cebuana.
Palawan Pawnshop started its operations from the Province of Palawan in the 1980s. It was originally started as a pawn brokerage. Today, like most pawnshops, it offers money remittance services under their Palawan Express Pera Padala, seven days a week.
Palawan has one of the largest networks of international remittance partners. Popular ones that facilitate money remittance from the U.S. are:
How To Receive Money Sent From The U.S. Through Palawan Pawnshop?
Here are the steps to claim your money remittance sent from the U.S.:
It was named after the founder Paz R. Villarica. The first branch of Villarica Pawnshop opened in Quiapo, Manila, in 1954. Today, the Villarica pawnshop has around 600 branches all over the Philippines. These pawnshops are especially popular among the OFW families, who rely on remittances from family members abroad.
International remittance partners that facilitate money remittance from the U.S. are:
How To Claim Remittances Through Villarica Pawnshop?
Tambunting Pawnshop is the Philippines ' oldest pawnshop. The pawnshop services have been in operation for over 100 years.
How to Send Money Through Tambunting Pawnshop?
You can send your money online through any Tambuting money transfer partners or visit a Tambunting outlet. If you are sending money online, always compare the exchange rates and transfer fees before sending money.
Suppose you are sending money online from the U.S. and want your recipient to pick through a Tambuting Pawnshop in the Philippines. Your best choices of money transfer service providers are limited to Western Union and Transfast.
If you are sending money through an outlet, make sure you note down the reference number or the control number that the receiver needs to show at the time of collecting the money.
How To Claim Remittance Through Tambunting Pawnshop?
To sum it up, Pawnshops are an essential part of remittance delivery in the Philippines. Banks and pawnshops are also known for charging high transaction fees when facilitating money transfers. The best way to send money to the Philippines is online through a money transfer service provider, even when the receiver picks up cash from the pawnshops.
It is difficult to entirely avoid transfer fees while sending money to the Philippines, even when you send money through an online money transfer service provider. However, you could take advantage of coupons and discounts that companies offer from time to time.
While the charges of pawnshops are relatively high compared to online money transfers, it offers convenience and flexibility.
When you are sending money from the U.S., make sure you get the best exchange rate and zero to lowest transfer fees. Opt for options that charge zero fees to claim or redeem the remittance you have sent from abroad. When in doubt, compare the top money transfer service providers and save on every transfer.
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