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Are fintech apps replacing credit cards? Card group answers

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ABS-CBN News

MANILA - Credit card firms in the Philippines are not worried about competition from fintech companies that have been moving into lending, the head of a card industry group said on Friday. Alex Ilagan, executive director of the Credit Card Association of the Philippines said fintechs are currently focusing on the ‘uncarded’ market. Ilagan added that credit card issuers may even benefit from fintech firms because of the greater financial inclusion resulting from their operations. “Actually they’re helping financial inclusion, so people are being introduced to the formal lending sector, which we feel eventually will trade up for a credit card,” Ilagan said. The credit card market remains healthy, Ilagan said, as 65 percent of borrowers pay in full every month, with just 35 percent being “revolvers” – those who don’t pay in full or pay just the minimum amount.He noted that the delinquency rate is “stable” and that most card users are employed individuals. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/blogs/business/08/22/23/7-ways-to-pay-down-credit-card-debt">7 ways to pay down credit card debt</a></li>	<li><a href="https://news.abs-cbn.com/business/06/13/22/gcash-disburses-over-p25-b-in-cash-loans-in-10-months">GCash disburses over P2.5-B in cash loans in 10 months</a></li></ul>

Credit card firms in the Philippines are not worried about competition from fintech companies that have been moving into lending, an industry group said. 