Point-of-sale loans in the Philippines are expected to reach P1.67 trillion by 2028, according to a survey by leading in-app and in-store installment solutions provider UnaCash.
The survey noted that about 91 percent of consumers prefer installment as the most viable payment option for them.
UnaCash said results of a survey involving 137 respondents from its online community found that financing option has gained significant traction in the local market, with 70 percent of online shoppers revealing they use at least one POS financing solution.
The survey showed that 33 percent of offline shoppers and 22 percent of online shoppers found POS financing crucial to influencing their choice to shop either in physical or online stores.
Several factors emerged as key drivers for choosing between online and offline shopping.
On-store shoppers want to physically inspect the products for personalized customer experience and to avoid shipping delays, while online consumers prioritized the convenience and accessibility that e-commerce platforms provide.
This is followed by the wide array of choices for purchases, payment flexibility which includes POS-financing options and the convenience of the door-to-door delivery of services.
The survey also reveals a trend for POS financing options. Short loans disbursed to e-wallets are used by 39 percent of offline shoppers and 31 percent of online shoppers.
Credit card installments are more popular among offline shoppers than online shoppers (16 percent in contrast to 10 percent). About 11 percent of offline shoppers used in-store POS finance offers, while 30 percent of online shoppers used buy now, pay later (BNPL) options.
Filipino consumers recognize the value of POS financing, as aligned with the broader market data provided by Bangko Sentral ng Pilipinas (BSP).
The survey disclosed that the majority of its respondents preferred the POS financing option because it spreads the cost of purchase over time, even when their income is sufficient to cover the full price of the item.
About 34 percent of consumers have tried the service out of curiosity, while 24 percent said the option supports addressing the gap in terms of income insufficiency.
Meanwhile, about 65 percent of respondents are likely to use POS options for future purchases to enjoy spreading costs of their purchases over a period of time to free up more cash for other expenses, while 26 percent are likely to use POS financing options for future purchases as they are constrained on income and are unable to afford the items otherwise.
The survey noted that strong consumer demand is likely to be the driver of market growth in the near future.