There’s a new credit card out–and it’s not from a bank. Bangko Sentral ng Pilipinas (BSP) has awarded Home Credit Philippines (HCPH) the certificate of authority as a credit card issuer. This makes Home Credit the first non-bank financial institution to get the green light to issue credit cards.
Operating in the country for five years, HCPH is the first to foray into the credit card business after the BSP decided to open the industry to new players in 2015. The company has already started gradually rolling out the product to its customer base, who have availed of the company’s in-store financing for gadgets and other goods, and cash loans.
When asked about their decision to get into the credit card industry, Chief Executive Officer Annica Witschard said, “Our business is all about being there for the customer for all their financial needs—and giving them the freedom to use the financial tool that best suits them. The addition of a credit card provides customers even more options than before, and enhances the customer experience like never before.”
Before the BSP opened the industry to non-banking institutions, only banks can offer credit cards to their clients. Now with Home Credit, even customers with no bank accounts can get approval for a credit card. They can avail of the card through the same easy application and fast approval of Home Credit’s consumer loans.
Home Credit’s credit card features terms and benefits similar to other basic cards. It has a loyalty program that entitles the holder to earn cashbacks, freebies, and discounts. The card also offers 0% and conversion of straight transactions at low-interest rates. Moreover, it abides by high-security standards with technologies like EMV Chip, PIN notifications, 3D Secure, and SMS notifications.
The launch of their credit card comes as HCPH closed 2018 with more than four million Filipino customers. Home Credit also garnered over 1.2 million registered users on its My Home Credit mobile app.