'Plastic' becoming Pinoy's financial tool

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Posted: 3:16 AM | Jun. 04, 2006

Inquirer

Published on page B3 of the June 4, 2006 issue of the Philippine Daily Inquirer

INDUSTRY figures in the last two years show that the number of credit cards or 'plastic' issued has grown by over 20 percent, and the growth potential continues to look promising. Credit Card Association of the Philippines [CCAP] Chair Manuel Santiago shares that "the industry has been steadily maturing." More and more people are realizing the value of owning a credit card. As of last year, we already have over 4.6 million credit cards in circulation."

CCAP is promoting the need to balance purchasing power with prudent spending, and to highlight the significant growth of the industry and the maturing of Filipino clientele. Credit cards have benefited Filipino consumers in a number of ways. When used responsibly, credit is a powerful tool to leverage one's finances. It significantly stretches consumers' purchasing power by a significant margin. Not only does this solve temporary liquidity, it also primarily lends convenience to its users.

CCAP President Rolando Tanchanco affirmed the growing number of card issuers and products have indeed benefited consumers since the introduction of cashless spending. He related, "You are now seeing a greater number of card products that cater to specific markets like working women, young professionals, even golfers."

Credit cards are also no longer simply a standby facility. The charge card has evolved into a financial tool that offers a number of rewards. Aggressive marketing has featured and packaged the plastic currency as a lifestyle card that comes in handy for the multi-faceted consumer—the club hopper, the golfer, the shopaholic, the loyal alumnus, the big spender or even the globetrotter.

Credit cards are now packed with value-laden features to fit the needs of its individual users. Issuers have seen it quite fit to take the rewards programs a notch higher, adding more appeal of the plastic currency to potential users.