Record growth in Philippine credit card usage despite high inflation

Credit card usage in the Philippines surged in Q1 2023, with gross billings jumping by 47% to PHP410bn (USD7.4bn), marking the fastest growth since the COVID-19 pandemic began, according to the Credit Card Association of the Philippines (CCAP). The data showed 11.8 million credit cards were issued by the end of March. Despite high inflation rates, CCAP expects robust personal spending to continue, as rising costs may push more cardholders to use credit cards to extend their purchasing power. The Philippine economy grew by 6.4% in Q1, fuelled by strong household consumption. However, CCAP Executive Director Alex Ilagan advised Filipinos to remember that credit cards are not “free money” and to avoid spending beyond their means.