Credit card volumes in PH rose to 11.2M in 2023

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Credit card market in the Philippines saw continued growth last year, according to a study by global information and insights company TransUnion.

Citing its analysis, TransUnion said total outstanding credit card volumes in the country increased to 11.2 million cards as of the fourth quarter of 2023 from 9.3 million cards in the same period in 2022.

The insights company added that, during the same period, credit card penetration rate — percentage of adults holding at least one credit card — reached over 15% of Filipino adults.

“Together, these trends represent a growth of around 20% in both overall volume and penetration rate in the last year,” TransUnion said.

Data from the Credit Card Association of the Philippines (CCAP) also showed that credit card spending increased by 39% to reach P853 billion in the first half of 2023, up 29% year-on-year.

TransUnion’s insights, moreover, found that "Gen Z" Filipinos are emerging as significant contributors to the increase in credit card originations.

“The percentage share of overall originations among Gen Z Filipinos has more than doubled over the past five years - up from just under one in ten (9%) in Q3 2019 to more than one in five (22%) in Q3 2023,” it said.

“This share will likely increase as more Gen Z consumers reach adulthood,” the insights company said.

TransUnion said Gen Z Filipinos also comprised 33% of the new-to-card or new cardholder segment of borrowers in 2023.

“The credit card market in the Philippines will continue to experience growth as demand remains high, especially amongst younger consumers. Data from TransUnion clearly shows that the younger generation of Filipinos, particularly Gen Z, are quickly emerging as a cornerstone for future market growth,” said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion.

“This generation places a higher importance on accessing credit and lending products to achieve their financial goals. As more Gen Z consumers reach adulthood, we expect their share of the credit market to continue increasing,” said Sun. —VAL, GMA Integrated News

This article Credit card volumes in PH rose to 11.2M in 2023 was originally published in GMA News Online.