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Here’s when card payments in Philippines are set to rebound

The country has over 60% of the unbanked population

Philippines

Here’s when card payments in Philippines are set to rebound. Source: pexels.com

Card payments in the Philippines are expected to rebound strongly with 15.4% growth in 2021, with a slight recovery in consumer and commercial spending, according to GlobalData.

The report has found that the value of card payments in the Philippines is anticipated to register a compound annual growth rate of 12.3% and reach $56.5 billion in 2024.

The Filipino card payments market, which registered a robust growth during the last few years, have been affected by the economic downturn due to the COVID-19 pandemic. However, the market scenario is now changing with the revival in economic conditions and vaccine distribution gaining pace, which in turn will positively impact the country’s card market
Nikhil Reddy, Banking and Payments Analyst at GlobalData

The Philippines Statistics Authority has reported that the country’s GDP contracted by 9.5% in 2020. With the opening of businesses and easing of lockdown restrictions, the economy is expected to revive in 2021 with an expected GDP growth rate between 6.5%-7.5%.

Despite the fact that the Philippines is a cash-based economy, the government has been taking initiatives to grow card penetration and usage.

This way, in September 2020, it passed a regulation to cap credit card interest rate at 2% per month (or 24% annually), compared to the average annual rate of 42% previously. This move is expected to further push credit card usage.

We’ve reported that card payments in the Asia-Pacific region set to rebound strongly this year.

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