Credit card spending during Songkran up 15% y-o-y


BANGKOK, 16 April 2011 (NNT) – Kasikorn Research Center (KResearch) has estimated that the value of credit card usage in April this year will stand around 62.15-62.70 billion baht, a rise of over 15-16% year-on-year. 

KResearch attributed the rise to higher spending of people to celebrate the traditional New Year’s Day of Songkran and to visit their relatives during the long holiday. A better domestic political climate this April compared to that in the past two years is also another driving force to card usage.

As for the whole-year usage, KResearch estimated that the value of spending on credit cards, excluding use of credit cards by foreign tourists and cash advance, will be around 817.55-825.00 billion baht, an increase of 13.9-14.9%.

As for challenges in the credit card business this year, KResearch elaborated that companies will not only compete with their rivals, but will try their best to maintain existing customers and survive amid the changing consumer trends following the economic condition.

Despite risky business operation, KResearch believed that credit card business rivalry will be intense with use of promotions like special discounts and offers in an effort to expand customer bases and stimulate credit card spending; however, credit card users must also beware of their spending.