DESPITE the rapid rise of digital wallets, millions of Filipinos remain outside the formal credit system, limiting their long-term financial mobility, according to new Trans-Union data.
While 80 million Filipinos used digital wallets in 2025 and 65 percent had access to formal financial services, only one in 20 consumers owned a credit card — leaving many “credit invisible” and unable to build credit histories needed for loans, vehicles, home purchases, or business capital.
According to its study on new-to-card borrowers—Filipinos who opened their first credit card in 2023 — 88 percent began their credit journey with a card, underscoring its growing role as the entry point to formal credit amid the expansion of digital commerce.
About 1.46 million Filipinos became new cardholders in 2024, with younger, digitally active consumers driving uptake — 57 percent were under 35. Women accounted for 56 percent of new cardholders, signaling progress in gender-inclusive lending. New borrowers received smaller credit limits but showed responsible use, posting similar utilization rates as established cardholders.
However, repayment performance lagged. Among near-prime borrowers, 28.2 percent of new users were 30 days past due after 12 months, far above industry norms. Prime-plus consumers also showed slightly higher delinquency rates. TransUnion said lenders must intensify early engagement and financial education to curb early-stage risks.
New borrowers also showed interest in expanding their credit portfolios, with 9.5 percent taking an additional product within six months—mostly a second credit card, personal loan, or auto loan. Loyalty was strong for unsecured products but weaker for secured loans requiring longer credit histories.
Credit limits for subsequent products remained low, with 71 percent receiving under P50,000. Delinquencies persisted as well: 6.2 percent of near-prime new borrowers fell 60 days past due on new credit lines, compared with 1.6 percent of established users.
TransUnion said these consumers will shape the future of the Philippine credit market and that responsible lending and education are critical to achieving inclusive growth. (KOC)