MANILA, Philippines - Like most credit card companies in the Philippines, MasterCard International is stepping up efforts to fortify its battle against cash.
Based on data, credit cards-in-force in the Philippines stand at less than seven million in a population of over 94 million, with a large percentage of cardholders having more than one card.
“The war on cash will continue,” Jose Luis Villareal, MasterCard Philippines country head, said.
To maintain the pressure, card firms have likewise come up with debit cards on top of the traditional credit cards. There are now roughly 30 million debit cards, including automated teller machines (ATM) cards.
Villareal explained that card companies have also resorted to offering credit cards co-branded with banks, merchants, hotels, airline companies and fastfoods. Examples of co-branding are Toyota MasterCard (Metrobank), Forever 21 MasterCard (BDO), Sta. Lucia Mall-RCBC Bankard MasterCard, Hyundai MasterCard (EastWest Bank), Robinsons-Cebu Pacific MasterCard (Metrobank), Security Bank World MasterCard and RCBC Bankard Wilcon MasterCard.
Recently, MasterCard launched a debit card with Philippine Savings Bank (PSBank), and another bank co-branding arrangement will be launched soon.
The MasterCard executive said there are still a lot of banks that have not co-branded for credit cards. But the debit card business is expected to outgrow the credit card business mainly due to the ATM market.
Card issuers lamented that a lot of ATM cardholders are unaware that they are holding a debit card. ATM cards that are co-branded with international issuers like MasterCard or Visa International are actually debit cards.
There are over 30.2 million MasterCard affiliated merchants worldwide.
Also recently introduced are “contactless” cards that will increase the accessibility and ease in making payments.
MasterCard introduced Paypass that is another way of paying “on the go.”
“Actually a lot of the newly-issued cards by MasterCard are already in the mode, since it is common in other countries,” officials explained. Common use for contactless or “tap” cards are fastfood restaurants, gas stations, convenience stores, pharmacies, stadiums, bus stations, LRTs, and train stations.
But MasterCard officials admitted that it will take time for tap cards to “get off the ground” until the necessary infrastructure is in place.