Financial Cards in the Philippines
Euromonitor International's Financial Cards in the Philippines report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
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Tables: 101 | Publication date: Apr 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Private consumption growth bolsters Philippine economy
Moderate growth within the Philippine economy has created an improved climate for financial cards. During the review period, the country experienced a slackening inflation, an appreciation of the local currency, unabated increase in remittances from OFWs (overseas Filipino workers), a rise in disposable income and a drop in the unemployment rate. Taken altogether, these factors bolstered private consumption, which was seen as the key driver to increased usage of financial cards.
Price Tag Law – a relief to existing and potential credit card holders
Among the various sectors, credit cards still proved to be the most profitable. Credit card use was prodded by the implementation of the Price Tag Law through DTI’s Department Administrative Order Number 10, which prohibits retailers from using one price tag for cash payments and a separate one for credit card payment.
Since then, the users of credit cards have been benefiting from the absence of surcharges. This translated into a considerable increase in credit card transactions value and volume in 2007. The prohibition of surcharges on credit card purchases, coupled with an aggressive marketing strategy, will probably encourage new applicants for credit cards and encourage existing holders to use their cards more frequently.
Debit cards: no more queuing at ATMs and banks
Debit cards exhibited the highest growth among financial cards in the review period. Its growing use is attributed to the convenience it brings to the cardholder as there is no need to stand in long lines to withdraw cash at ATMs and banks.
The implementation of the law prohibiting the imposition of surcharges for all types of card transactions – whether credit or debit, has likewise, stepped up the usage of debit cards. In the review period, Visa and Mastercard-based debit cards dominated.
Top three inter-bank networks finally inter-connected
In the review, ExpressNet, BancNet and Megalink, the three big inter-bank ATM networks finally became interconnected, resulting in increased convenience for customers of member banks of both these networks.
This interconnection instantly facilitated access to almost double the number of ATMs as card holders of one network could now use the ATMs of other network. In addition to the top three networks, two other independent ATM networks, NationLink and Encash Network Services, have sprung up in the country during the review period. Both these networks seek to complement the big networks by extending the reach in the countryside, as the main networks are largely concentrated in urban areas.
Contactless mobile commerce making headway in the Philippines
Contactless mobile commerce is definitely making headway in the Philippines. In the review period, its use was primarily seen in the banking and transport sectors.
Various microfinancing institutions have tied up with Globe Telecoms and Smart Communications in the utilisation of the mobile phone banking system. The same communications giants have penetrated the transport sector with their G-Pass and Smart Money Paypass, which served as ticket alternatives to riding the Manila Metro Rail Transit.
Table of contents
FINANCIAL CARDS IN THE PHILIPPINES : MARKET INSIGHT
EXECUTIVE SUMMARY
Private consumption growth bolsters Philippine economy
Price Tag Law – a relief to existing and potential credit card holders
Debit cards: no more queuing at ATMs and banks
Top three inter-bank networks finally inter-connected
Contactless mobile commerce making headway in the Philippines
KEY TRENDS AND DEVELOPMENTS
Macro-economy and financial cards usage
Prohibition in the imposition of credit card surcharges
Growing use of debit cards
Inter-connection of Megalink, BancNet and ExpressNet
Advances in contactless mobile commerce
OPERATING ENVIRONMENT
Consumer credit and lending
Issuer Fraud
Acquirer fraud
E-commerce
M-commerce
ATM and POS terminals
Governmental regulation and legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Summary 1 Research Sources
LOCAL COMPANY PROFILES - PHILIPPINES
BANCO DE ORO UNIVERSAL BANK - FINANCIAL CARDS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Banco de Oro - Unibank, Inc. (BDO): Key Facts
Summary 3 Banco de Oro Universal Bank (BDO): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANK OF THE PHILIPPINE ISLANDS - BPI - FINANCIAL CARDS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bank of the Philippine Islands: Key Facts
Summary 5 Bank of the Philippine Islands: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
EQUITABLE CARDNETWORK INC - FINANCIAL CARDS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Equitable CardNetwork Inc (ECN): Key Facts
Summary 7 Equitable CardNetwork Inc (ECN): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
METROPOLITAN BANK & TRUST CO - METROBANK - MBTC - FINANCIAL CARDS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Metropolitan Bank and Trust Company: Key Facts
Summary 9 Metropolitan Bank and Trust Company: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SECURITY BANK CORP - FINANCIAL CARDS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Security Bank Corp: Key Facts
Summary 11 Security Bank Corp: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory Vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact Vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Charge Cards Sector Performance: 2002-2007
Table 63 Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Personal Charge Cards Sector Performance: 2002-2007
Table 65 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 66 Corporate Charge Cards: Sector Performance: 2002-2007
Table 67 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 68 Charge Cards: Number of Cards by Issuer 2002-2006
Table 69 Charge Cards: Number of cards by Operator 2002-2006
Table 70 Charge Cards Transactions by Acquirer 2002-2006
Table 71 Charge Cards Transaction Value by Operator 2002-2006
Table 72 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 73 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 74 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 75 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 76 Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 78 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 79 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 80 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 81 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Pre-paid Cards Sector Performance: 2002-2007
Table 83 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 84 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 85 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 86 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 87 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 88 Pre-paid Cards by Type 2004-2007
Table 89 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 90 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS