To jaded consumers who have since become accustomed to making online purchases using credit cards or mobile phones equipped with e-wallet and QR code apps, the terms “flexible installment plans,” and “low-monthly payments” would surely sound like music to their ears.
If you ask Robin Wong, the CEO of Mocasa, a credit payment company in Southeast Asia and the first non-bank partner of MasterCard in the Philippines, he will probably say that adding these three other terms – “interest-free credit,” “effective credit assessment,” and ”smooth cashless payment experience”– is what would make the Filipino consumers’ hearts all of a flutter even more.
Robin Wong, Chief Executive Officer of Mocasa
According to Wong, none of the incumbent banks or fintech companies in the country today can offer all of the above features in a single app. “Mocasa does,” says Wong, while quickly pointing out that all three features are critical to addressing the strong demand from over 38 million employed adult population of the country.
“As the first digital credit payment app in the Philippines, we have actually been offering all these features at Mocasa. Unlike e-wallets, which would normally require you to top-up or transfer cash from your bank to their platform before you can purchase products or services, what our company does is we provide our users with a credit line that they can readily use in offline and online stores,” Wong explains.
With regard to payments, the company also gives users better control of their finances.
“We do not charge users with interest rates if they pay on time or within the 20 days grace period. In addition, the more they use Mocasa (and remain in good standing), their credit limit grows as well,” he beams. “Mocasa is also fully digital, which makes our application and approval process for a credit line easier, faster, and more convenient compared to traditional banks that offer credit cards or loans.”
Mocasa interface
The company has also made the onboarding process simpler — once you sign up with Mocasa and you get approval for a credit line, all you’ll have to do is tap a QRPH code in physical stores or use the company’s digital Mastercard powered by Mocasa Credit line for your online purchases.
PH at the cusp of a digital banking revolution
As a result of the global pandemic, the world is now experiencing rapid growth in online transactions. A recent McKinsey survey actually puts the Philippines on the verge of a digital banking revolution, with regulators now encouraging new players to enter the digital financial services sector.
According to the report, with the continuously growing demand for cashless payment tools and low-cost credit lines, firms that take the initiative could surely gain an early advantage in one of the world’s largest greenfield markets.
However, a majority of adult Filipinos still lack access to basic financial services while others are facing a whole gamut of issues such as the inability to obtain credit cards or secure adequate loans and insurance policies.
As a fintech company founded in 2021 that focuses on providing innovative credit payment services to the Philippine market, Mocasa has been providing full support to the government and finance industry regulators in making Filipinos more financially literate.
Mocasa aims to provide innovative credit payment services to PH market
“In our own backyard, we have been creating informative content about credit and cashless payments,” said Wong. “But more than educating Filipinos, we think that it is equally important that we recognize first the challenges and find the right solutions – which we are hoping to accomplish with our product.
Wong then went on to describe two main types of cashless payment tools in the world: First is the credit card or debit card (which is widely used in the US market), and the second is the e-wallet app (developed and greatly used in the Chinese market).
“Neither of these tools works in the Philippines,” he said while identifying two main obstacles — the lack of cashless payment tools and the insufficiency of credit data.
To address this gap, Mocasa is now moving through the gears to help more underbanked and underserved Filipinos with its app’s many unique features such as the “Pay Later Anywhere.” It has also been coming up with new and innovative solutions to make everyday transactions more convenient through the Mocasa card, which utilizes Mastercard powered by the Mocasa credit line.
Mocasa currently has more than 100,000 users who have successfully obtained a credit limit. It has also since integrated with Mastercard, Asia United Bank (AUB), and other well-known partners to provide quality credit services. To experience its credit payment service, check out www.mocasa.com or download the Mocasa app on your mobile phone via Google Playstore or Apple Appstore.
Best timing to introduce Mocasa’s services to the PH market
According to the World Bank, the penetration rate of credit cards among the working population in the Philippines is only 8.1% (as of end-2021), and more than 80% of retail transactions are still being paid with cash.
“With these, our team believes that the said rates could be greater than 30% and less than 10%, respectively, after five years of development. This actually brings the best timing for Mocasa to make its presence felt in the Philippines among all emerging countries,” affirmed Wong.
The company also supports the Bangko Sentral ng Pilipinas (BSP)’s digital transformation roadmap and its vision of a cashless society, which is why it is now doing credit payments via QRPH and digital Mastercard.
“We believe that this is a huge market for fintech players. We are not trying to compete with them (other fintech firms). Rather, we try to complement the products and services of each other. This is actually just our first step to help the local market become a cashless society,” Wong said.
When asked how he envisions Mocasa’s business evolving in the Philippines in the next few years, Wong had this to say: “We want to create first a solid base of customers in a niche market because once we have established ourselves in that area, it would be easy for us to explore, expand, and offer our other digital banking products.”
According to Wong, the company’s focus now is to invest heavily in further developing its unique app to address cashless payment and credit data issues for Filipinos who are still not well-served by traditional banks.
“We aim to acquire more than 3 million credit accounts by the end of 2024 and to onboard more than 10 million users within 5 years,” he said. “We also aim to expand outside the Philippines like Vietnam and Thailand but no concrete plans yet as we just want to focus more on the Philippine market first,” he said.
The company is now also partnering with local regulators, financial institutions, and other merchants to offer more innovative features for its users.
For instance, the company is now working on a rewards program that will provide the best-ever cash-back offer to consumers on the merchant side. It is now also trying to get approval for a digital bank license in support of its plan to offer low-cost digital banking services.