Atome secures ₱5B loan from AUB to expand PayLater card

The funding adds to Atome’s expansion efforts as traditional banks increasingly back fintech firms offering flexible financing options.

Atome has secured a ₱5 billion loan facility from Asia United Bank (AUB), the latest sign that traditional banks are increasingly backing fintech firms as flexible financing options gain traction among Filipinos.

The funding will be used to expand Atome’s PayLater card, which allows users to enjoy 0% interest for up to 40 days and split payments into either three or six months.

Atome has been on an aggressive growth trajectory since the start of the year. In January, the homegrown fintech company secured a $345 million (₱21 billion) investment from some of Asia’s largest financial institutions, with the same objective of expanding its financing options.

The app originated as a buy now, pay later (BNPL) service for Filipinos, especially those in the unbanked population. The company has since expanded its services to include loans, savings, and insurance. Atome says it has issued cards to 3 million users, 80% of whom are first-time cardholders.

The fresh funding suggests local traditional banks are beginning to recognize the legitimacy of newer fintech services that help expand financial inclusion, taking cues from international financial institutions.

Research and Markets, a global market research firm, projects the BNPL industry in the Philippines to grow by 14.6% annually and be worth $5.37 billion (₱331 billion) by 2030, primarily driven by the continued growth of e-commerce and fintech services in the country.