The credit card industry is taking advantage of the power of AI and digital technology for better user experience.

The local credit card industry expects to see the rise of artificial intelligence (AI) and other digital technologies that will enable issuers to make data analyses on consumer spending habits and demographics, as well as detect and prevent fraud.

Credit card industry to harness AI, digital tech

At the 43rd anniversary forum of the Credit Card Association of the Philippines (CCAP), CCAP Chairperson Ma. Magdalena Surtida said: “For 2024 and beyond, we expect to harness the power of AI and other new technologies to help us further in fraud detection.”

She said the association, comprised of 17 major credit card players in the Philippines, also expects the following trends in the coming years:

Increasing use of mobile applications for doing credit card transactions and credit card account management to promote self-service, “enabling our cardholders to have more control over one’s credit card account.”
More “tokenization,” or the conversion of sensitive data into tokens, to deter fraud as well as to deliver a more seamless credit card payment journey with merchants while enjoying personalized services.

“With these, cardholders can expect more value for money, more flexibility, and more options to enjoy rewards points for use here and abroad,” she said.

The CCAP forum, which had the theme “The Future of Payments: Credit Cards and Beyond,” featured presentations of global payment industry leaders American Express, Mastercard, UnionPay, and Visa.

“The theme encompasses the use of credit cards, as we discover and mold its future in various forms and modes, how it will continue to help digitalize the payment landscape of our country, and how it helps in our journey towards having a financially inclusive Philippines – with credit card as a financial product that is and can be made available to all Filipinos, for cashless and cardless payments,” said CCAP President Rolando Ebreo in his closing remarks.

Since 2022, there has been no letup in consumer spending, particularly on travel and dining out. “People who longed to see family and friends during the lockdown are now doing so, and with a vengeance,” Ms. Surtida added. As of end-June 2023, the industry has generated P619 billion of credit card receivables — 29% more than in the same period last year. Year-to-date, the industry has seen card spend increase by 39% to P853 billion. Cards-in-force grew modestly at 14% to 12.2 million cardholders as credit card issuers want to maintain a healthy industry past due of 4% which is at the same level as YTD June 2022.

To pursue its mission to educate cardholders on responsible credit management, protect them against unauthorized transactions and scams, and increase their awareness on credit card features and benefits, CCAP has been expanding the audience reach of its intensified campaign. CCAP’s Facebook page now has 43,000 followers, in addition to collaborating with the Bangko Sentral ng Pilipinas on PisoLit, its platform for the digital, social media-based financial education advocacy. Facebook platforms. This year, CCAP also launched its presence on TikTok to promote association mandates.