CONSUMER spending is expected to drive the value of point-of-sale (POS) loans in the Philippines to P1.67 trillion by 2028, a survey showed.

UnaCash, a provider of in-app and in-store installment solutions, reported that 91 percent of local consumers prefer using this financing option.”As consumer behavior continues to evolve, the local market witnessed a substantial transformation in the spending habits of Filipino consumers,” it said in a statement.”To gain better insights into the consumer behavior in the Philippines, UnaCash surveyed 137 respondents from its online community on the attitude of Filipino consumers to POS financing,” it added.The report showed that 70 percent of online shoppers in the local market use at least one point-of-sale financing option, indicating its growing popularity.

Notably, 33 percent of in-person shoppers and 22 percent of online shoppers mentioned that the availability of POS financing significantly affects their choice of shopping method.

Several factors were said to influence the decision between shopping in physical stores and online.

Forty-one percent of in-store shoppers emphasized their desire to physically examine products, while 40 percent enjoyed a personalized customer experience and 34 percent avoided shipping delays.

On the other hand, online consumers prioritize the convenience and accessibility of e-commerce platforms (50 percent). They also value the wide variety of choices (40 percent), payment flexibility, including POS financing options (37 percent) and the convenience of doorstep delivery services (37 percent).

The survey also showed a trend in POS financing options.

About 39 percent of in-person shoppers and 31 percent of online shoppers use short loans sent to e-wallets. Credit card installments are more favored by in-person shoppers (16 percent) compared to online shoppers (10 percent).

Additionally, 11 percent of in-person shoppers were said to utilize in-store POS finance offers, while 30 percent of online shoppers opted for buy now, pay later choices.

“Filipino consumers recognize the value of POS financing, as aligned with the broader market data provided by Bangko Sentral ng Pilipinas,” UnaCash said.

It said that most respondents favored POS financing as it allows them to split the cost of their purchase over time, even if they can afford to pay the full price upfront.

“Strong consumer demand is likely to be the driver of market growth in the near future,” UnaCash said.

“Despite inflationary forces being forecasted to remain elevated across 2023, nominal income growth is projected to outpace inflation, which ensures real income growth for consumers and gives a greater propensity for more spending,” it added.

With positive economic conditions, stronger consumer buying ability, growing digitalization and improved financial inclusion, UnaCash expects the POS financing market in the Philippines to maintain its post-pandemic growth rate.