MANILA – Credit card spending, at least for RCBC Bankard customers, rose 45% in the first 5 months of the year, due to pent-up demand and increased adoption of e-commerce , said on Wednesday the president and chief executive of RCBC Bankard, Arniel Vincent Ong.
For the months of May and June, credit card activity has already exceeded pre-pandemic levels, Ong told the ANC.
Based on consumer data, spending is focusing on food and catering, clothing and apparel, and transportation, after a few years of muted or at least conservative business due to the COVID-19 pandemic. 19.
Travel spending is also up, the bank said.
“There’s a lot of back-spending and a lot of it coming from easing restrictions, greater market mobility, improving economic prospects and strong pent-up demand among consumers,” Ong said. .
With the easing of restrictions, consumers spent in physical stores while maintaining their business online, he said.
“We expected e-commerce share to decline when mobility restrictions were lifted, but that’s not what we’re seeing with our customers,” Ong said.
“We find that online behavior continues even with the easing of restrictions, and as a result their total spending increases both in physical or in-store purchases, as well as in e-commerce on online purchases,” he added.
Ong said the credit card industry must surpass or at least match alternative payment channels such as digital banks or e-wallets.
In terms of interest rates, RCBC said it would keep its current rates stable after the Bangko Sentral ng Pilipinas capped issuer fees at 2% per month.
The BSP also raised interest rates to 2.25% with further tightening on the horizon.
Ong said the bank would continue to assess the impact of the interest rate movement on the business.