MANILA, PHILIPPINES — As one of the oldest financial institutions, pawnshops have historically been a last resort for individuals in dire straits, offering immediate cash in exchange for valuable items. In the Philippines, it has been a part of the financial landscape since the 19th century, with Spain introducing the concept to Filipinos.
Despite their long history and widespread use, pawnshops have often been stigmatized as a last resort for the financially struggling. This negative reputation can be attributed to several factors, including high-interest rates, shady business practices, and the perception that pawnshops primarily cater to low-income individuals.
But recently, something has shifted in how people view and use pawnshops. This change is evident in their diverse clientele, from antique collectors and bargain hunters to small-business owners and individuals seeking quick cash flow. The modern customer understands the pawnshop can be a tool for financial management.
In recent years, pawnshops’ processes have become fast and efficient with failure to repay not impacting the customer’s credit record. The cost of borrowing can also be lower than bank overdraft fees, payday loans, and “buy now, pay later” apps. For entrepreneurs, this access to capital have opened up opportunities for growth and expansion that would otherwise be difficult.
PawnHero, a newcomer to the game, is leveraging on technology and modern business practices to serve customers better. The country’s first online pawnshop allows Filipinos to pawn items without leaving their homes. They can simply upload a photo and description of their item on PawnHero’s website or app, receive an initial estimate, and have the item picked up for appraisal and storage. Customers also have the option to pay interest and extend loans online, making it more convenient than ever to use pawnshops as a financial solution.
“At PawnHero, we aim to reshape the landscape of pawning in the Philippines,” said Dr. Iris Pastor, Chief Operating Officer at PawnHero. “By taking pawning online, we’re providing a fair and transparent service that’s easily accessible to everyone, breaking down traditional barriers and delivering a higher level of convenience to our customers.”
With the stigma surrounding pawnshops slowly dissipating and the industry continuously evolving, pawning is becoming a practical financial solution whether for emergency cash needs or short-term financing.
Click here to learn more about PawnHero.
