Who doesn’t love shopping? The Philippines has nearly 40 million internet users despite having one of the lowest bandwidth connectivity compared to neighboring country in the Asean region, roughly at 3.6 mbps. Despite that the eCommerce is a booming and it’s a huge revenue generating stream for retail and service industry.
Since 2014 the online sales increase 117% and according to one of the leading statistics companies on the internet based in Germany, eCommerce in the Philippines projects a growth rate of 20.67% from 2016 to 2020 resulting to a market volume of mUSD$2.794.
The market’s largest segment is the segment consumer electronics & physical media with a market volume of mUSD 606.7 in 2016. User penetration is at 42.52% in 2016 and is expected to hit 60.90% in 2020. The average revenue per user currently amounts to USD 44.70.
These are driven by rising internet proliferation, increasing disposal income and effective online payment system. So how can an online store get a slice of these potential market?
As we all know Philippines has a low credit card penetration, the Credit Card Association of the Philippines (CCAP) said the industry posted modest growth in 2014 only around 7 percent in the total number of cards issued due to stricter regulations from the Bangko Sentral ng Pilipinas.
CCAP estimated around 7.6 million credit cards have been issued in the Philippines as of December 2013. This translated roughly to 3 million or 4 million credit cardholders, as most Filipinos carry two or three credit cards in their wallets.
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