BDO Unibank Inc. and multinational financial services firm American Express Co. teamed up to launch a virtual card primarily used for online shopping amid the growing e-commerce sector.
The virtual card has its own credit card number and offers an adjustable credit limit, the listed bank explained in a disclosure on Monday. These features, it added, give the users control over online spending and provide an additional layer of account information security.
“As more consumers shop online for everything, from food delivery to groceries and entertainment, they expect more flexibility, convenience, and greater control on their online spending,” BDO said.
The BDO American Express Virtual Card, the Sy-led bank said, is timely given the continuing growth in the e-commerce segment.
“With the BDO American Express Virtual Card, we are offering our Cardmembers a product that addresses their reservations about online credit card payments and gives them the assurance they can shop online confidently,” BDO Senior Vice President and Consumer Banking-Marketing Head Nanette R. Regala said.
Sanjiv Malhotra of American Express said the company has advanced fraud protection methods, ensuring that the cards are secured. He is serving as the vice president and general manager of the financial services firm’s global network services for Southeast Asia and the South Pacific.
“That said, we understand some customers feel more comfortable using a separate credit card number for their online transactions,” he said. “We are always looking to expand and improve our products and services to support the evolving payment needs of our customers–and the Virtual Card does just that.”
In the first quarter, BDO saw its net income improve by 19 percent to P10.4 billion year-on-year, thanks to strong performance from service fee businesses.
The service fee collection compensated for the weak demand for loans during the said period. The loan portfolio slipped by 1 percent to P2.2 trillion.
BDO earmarked an additional P2.9 billion in loan loss buffer despite the nonperforming loan ratio (NPL) staying within anticipated levels. NPL coverage ratio stood at 107.1 percent.
Capital adequacy ratio and common equity tier 1 were at 14.7 percent and 13.6 percent, respectively.
Source: Business Mirror