MANILA - Citi and Visa have introduced the first contactless credit card payment technology in the Philippines.
Called the Citibank Visa payWave, the new product is expected to widen Citi’s share of the local credit card business, which is contributing half of its revenues in the country.
Bea Tan, Citi consumer business manager, said the bank’s sales posted a good double-digit growth in the first half of the year on the back of the country’s sustained economic growth.
“It’s (sales) actually been pretty good. In the first half of the year, our growth has exceeded our expectations. The country is doing well in terms of drivers and profitability. It’s good to see that the country is growing so that we’re introducing innovation to our customers. Hopefully, this will change the payment behavior of our customers,” Tan told reporters during the payWave launch last week.
She said the innovation in the mode of payment for credit card transactions would support growth in the bank’s consumer business.
Tan said the bank’s credit card business contributes 50 percent of its total sales. Citi has 1 million credit card holders in the country, where it has a 20 percent share of credit card transactions.
“In 2014, we foresee that given that the economy is doing very well for us, we will be able to open up more segments. We’re looking at high double-digit growth for next year in terms of customer acquisition. It will be something we can focus on next year,” Tan said.
Iain Jamieson, Visa country manager, said the credit card transactions would increase significantly, particularly the frequency of credit card use.
“Contactless payments will spur the country’s evolution towards cashless society,” he said.
With the new Citibank Visa payWave, cardholders can simply wave their cards in front of a Visa payWave reader to pay for their goods. The contactless payment would reduce time waiting in checkout queues for everyday purchases such as groceries, fastfood meals, coffee, and movie tickets.
The Citibank card holders don’t need to sign for purchases below P2,000 but are given the option to collect the receipt.
On average, Visa payWave transactions can be up to three times faster than cash payments, reducing queuing times for both cardholders and retailers.
“We are delighted to introduce our clients to a new way to pay with their credit cards where they simply wave, pay and go,” Citi country officer Batara Sianturi said.
Citibank has seven merchant partners so far, including Coffee Bean and Tea Leaf, Eastwood Cinemas, Lucky China Cinemas, McDonalds, Mercury Drug, Newport Cinemas and Robinsons Supermarkets.
Citi also has pioneered mobile-based payments with credit cards, real time account inquiry with SMS and account management convenience with combined credit limit for multiple Citi cardholders.
source: interaksyon.com
