Credit card use in Philippines still low despite growth

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January 22, 2026 | 12:00am

MANILA, Philippines —  Credit card penetration in the Philippines remains low despite steady growth in the number of cards issued, leaving significant room for expansion as competition intensifies and loan access improves, according to the Credit Card Association of the Philippines.

CCAP executive director Alex Ilagan said the industry had 18.5 million outstanding credit cards as of the fourth quarter of 2025, based on a quarterly survey conducted among its members.

“Based on the last survey, there are now 18.5 million outstanding credit cards issued,” Ilagan said. “In terms of penetration, that is still quite low. Considering the adult population of about 70 million, penetration remains very low.”

Despite the low base, Ilagan said the industry sees significant upside potential, noting that the number of outstanding credit cards has been growing by about 12 percent year on year.

He expects growth to accelerate further this year as more players enter the market, particularly with the entry of financial technology firms offering alternative credit products.

“Consumers may begin with buy now, pay later products. Eventually, we expect them to trade up to a credit card. We do not really see (fintechs) as direct competitors. They expand the overall market capacity,” he added.

According to Ilagan, barriers that previously discouraged Filipinos from applying for credit cards, such as the lack of formal identification and credit records, have largely been addressed.

He cited the Credit Information Corp., the country’s national credit registry, which he said now has about 60 million unique data subjects, as well as the rollout of the national ID system.

“These two major hindrances in the past have already been resolved,” Ilagan said. “It is now a matter of making the market aware that these systems are in place. People can now apply for credit cards and loans from registered lenders.”

He also said that broader access to credit information would also benefit microfinance institutions and credit cooperatives, particularly in provincial areas.

On concerns over rising credit card receivables amid the country’s low household savings rate, Ilagan said recent data show a gradual shift in consumer behavior rather than a deterioration in asset quality.

“We found that the ratio of revolvers is starting to increase,” he said, referring to cardholders who do not pay their balances in full. “This ratio has been quite flat for maybe a decade.”

He attributed this trend partly to the low interest rate environment that followed the pandemic, which encouraged cardholders to revolve and borrow against their credit limits. This remains healthy as long as borrowers continue to pay on time.