Philippines: Tonik Digital Bank Brings ₱50,000 In-Store Instalment Loans to EMCOR Shops
Tonik Digital Bank, the Philippines’ first standalone digital bank, has signed a long-term deal with Davao-based appliance chain EMCOR to offer instalment loans at the point of sale. Shoppers can apply in store through the Tonik app and borrow up to ₱50,000 for a first purchase, and both firms plan to take the programme across Mindanao and the Visayas in 2027.
Key facts
- The deal: Tonik and EMCOR signed a memorandum of agreement on 23 October 2026 at EMCOR’s head office in Davao City, after almost two years of talks.
- The product: Tonik’s Shop Installment Loan lets qualified customers borrow up to ₱50,000 (Philippine pesos) on their first purchase, applying in the Tonik app with one valid ID.
- What it covers: household appliances, smartphones, electric bicycles and furniture.
- Rollout so far: the programme began in 20 EMCOR branches and has grown to 32 stores, with a wider push across Mindanao and the Visayas planned for 2027.
- Demand for credit: EMCOR says financing now makes up about 30% of its nationwide sales, up from 18% a year earlier.
How shop instalment loans work
The model is simple. A customer picks a fridge, phone or e-bike in the store, applies for a loan on the spot through the Tonik app, and, if approved, takes the item home and repays in fixed instalments. The retailer gets paid upfront, and the bank carries the credit risk. This kind of point-of-sale lending is close to buy now, pay later (BNPL), but it is run by a licensed bank under the supervision of the Bangko Sentral ng Pilipinas (BSP), the country’s central bank.
EMCOR is part of the J-Del Group and runs stores and service centres across Mindanao, the Visayas and Palawan. It already works with other lenders: a non-bank financier has funded two-wheeler purchases in its Davao stores since 2024, and an EMCOR-branded credit card launched in 2026. Adding a digital bank gives its shoppers another way to pay over time.
Neither company has published the interest rates, fees or loan tenors for the EMCOR programme. Tonik says it is keeping financing rates competitive despite rising costs.
Why it matters
Mindanao and the Visayas, the southern and central island groups of the Philippines, have fewer bank branches than Metro Manila, and many households have never had a formal loan. Tonik founder and CEO Greg Krasnov called the deal the bank’s “first big opening in Mindanao” and said partnering with large retailers is one of the best ways to bring credit to people at the point of sale.
For digital banks, retail partnerships solve a hard problem: finding borrowers cheaply. An app-only bank has no branches, so a busy appliance store becomes its front door. For retailers, in-store credit lifts sales. EMCOR’s own numbers show how much shoppers rely on financing for big-ticket items.
The deal also shows how competitive consumer credit in the Philippines has become. E-wallets such as GCash, digital banks and non-bank lenders are all chasing the same customers, often in provincial markets. Both partners stressed responsible lending: EMCOR president Nelson Aparejo said giving credit to customers who cannot pay “is also a disservice to them”, while Tonik’s retail partnerships head Addie Valdezco said the goal is good loans, not just more loans.
What to watch
- Pace of the 2027 rollout: how quickly the programme moves beyond the current 32 stores into the rest of EMCOR’s network.
- Pricing disclosure: whether Tonik publishes rates and terms for EMCOR shoppers, which would make it easier to compare with cards and non-bank lenders.
- Loan quality: repayment performance among first-time borrowers in Mindanao, a key test for digital lending outside Manila.
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Sources: SunStar Davao (October 2026) · Fintech News Philippines (November 2026) · Insignia Business Review (November 2026)
