Atome Financial anticipates significant growth in the Philippines’ buy now, pay later (BNPL) market this year, attributed to the country’s low credit card penetration rate and the increasing digitalisation.
An Atome spokesperson highlighted to Business World,
“The BNPL industry in the Philippines is poised for substantial growth, driven by increasing consumer adoption of mobile-first digital financial services, a growing middle class and young, mobile-savvy internet population.”
Industry data shows credit card penetration in the Philippines stood at around 2% in 2022, while debit card ownership is almost ten times higher. Atome commented,
“Cash is still the most prevalent mode of payment, although digital is catching up. What this means is there is a sizable credit crunch, especially among the underbanked who need it the most.”
Atome’s internal data revealed that cardholders primarily use their cards for bill payments, groceries, and e-commerce purchases.
“We have seen very healthy organic adoption for Atome Card in the Philippines, growing at over 20% month on month in terms of cardholder base. We also see very high daily activity, with many Filipinos using the card for utility and telephone-communication bills, household groceries and e-commerce purchases, and can even be used overseas,”
Atome stated.
The company emphasised the importance of providing affordable credit in a careful, risk-managed, and fiscally prudent manner, both from a consumer and lender’s perspective.
In response to customer demand for higher credit limits, Atome said it will focus on enhancing its BNPL card.
“We are exploring how to do this in a fiscally prudent, risk-managed and responsible way. At the same time, we will continue to invest in financial literacy and education.”
Atome Financial plans to expand its loan book through Atome Cash and will introduce embedded insurance products through its partnership with Chubb. Earlier this year, Atome announced a regional partnership with the global insurer, with two insurance products, Bill Secure and Shopping Secure, set to launch.
Additionally, Atome aims to broaden its e-commerce partnership with Lazada and is seeking to collaborate with other platforms. In June, the company secured a three-year term loan facility from a consortium led by EvolutionX Debt Capital to launch new products in the Philippines, Singapore, Malaysia, and Indonesia.
Part of Singapore-based Advance Intelligence Group, Atome Financial has been active in the Philippines as a BNPL firm. The company reported that its full-year operating income doubled to US$170 million in 2023, primarily driven by its BNPL business.
Featured image credit: Edited from Freepik
