UnaCash, a provider of in-app and in-store installment solutions in the Philippines, foresees point-of-sale loans (POS) soaring to P1.67 trillion by 2028, driven by a shifting consumer landscape. 

A survey conducted by UnaCash reveals a 91% inclination among local consumers toward this financing option, signaling a significant evolution in spending behaviors.

Consumers resonate with POS financing primarily for its ability to spread costs over time, cited by 42% of respondents, even when their income suffices for full payments. Moreover, 65% intend to use POS options for future purchases to manage costs, while 26% aim to address income constraints.

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With household spending consisting about 72.8% of the country’s economic activity, consumer loans surged by 16.4% from P1.968 trillion in March 2022 to P2.291 trillion in March 2023. The primary reasons for seeking credit were purchasing basic goods and services (52%), business expansions (24%), and education (12%). Also, 55% of personal consumption loans were facilitated through POS purchases, reflecting their pivotal role in bridging financial gaps for households.

POS financing preferences

UnaCash’s survey of 137 respondents highlighted the prevalence of POS financing, with 70% of online shoppers leveraging at least one POS solution. Factors influencing shopping choices included the need to physically inspect products for in-store shoppers (41%) and the convenience of e-commerce platforms for online consumers (50%).

The survey delineated trends in POS financing preferences, with short e-wallet loans favored by 39% of offline and 31% of online shoppers. Also, credit card installments (16% offline, 10% online), in-store POS finance offers (11% offline), and buy now, pay later options (30% online) demonstrated varying degrees of popularity.

According to UnaCash, despite anticipated inflationary pressures in 2023, income growth is expected to outpace inflation, fostering real income growth and enhanced spending capacities. Forecasts indicate a 5.9% average growth in consumer spending from 2023 to 2028. 

“These favorable macroeconomic conditions, alongside increased digitalization and financial inclusion, lead UnaCash to predict sustained growth akin to the post-pandemic period for the POS financing market in the Philippines,” the company said.