Ms Pittaya, center, at the launch of KTC’s new marketing campaign which aims to encourage spending in the last quarter of this year.
Krungthai Card (KTC), a major credit card provider, is expected to miss its credit card spending target for this year due to government lockdown measures to curb Covid-19 infections.
Total credit card spending by KTC customers for this year is expected to reach around 197 billion baht, a contraction of about 1-2% from last year, from this year’s existing target. – an 8% year-over-year growth rate, said Pittaya Vorapanyasakul, KTC executive vice president for credit cards.
Given the impact of Covid-19, KTC would also miss its latest credit card expansion target for this year. The company aims to grow its new credit card base by 230,000 cards throughout 2021, Pittaya added.
However, spending through KTC credit card customers has increased since last month after the government eased its lockdowns, especially on shopping malls and restaurants. As a result, credit card spending in the shopping and dining categories improved. The company expects incremental spending growth of about 1-2% for credit card spending in the fourth quarter of this year, year-over-year.
With a trend of improving consumption levels, KTC has implemented new marketing campaigns to encourage spending in the last quarter of the year. In addition to shopping and dining categories, KTC will focus on encouraging spending in online shopping, food delivery, healthcare and insurance categories in line with the new standard amid the pandemic.
Normally, spending in the mutual fund category would also support last quarter credit card spending, which is a seasonal factor, she said.
Twenty-two months since the emergence of Covid-19 in Thailand, online purchases through KTC credit cards have increased by around 40% from pre-pandemic levels, while spending on platforms market increased by 15%.
While the tourism sector as a whole has yet to recover, domestic tourism has improved in line with the state’s relaxation of lockdown measures. At the same time, KTC expects overseas tourism to pick up gradually over the next year, along with a drop in the number of new infections and advances in immunization both locally and internationally.
“Our tourism partners hope the industry will pick up gradually and many of them are gearing up for next year’s business plans. Should the situation improve, KTC is ready to join business partners. to provide marketing campaigns aimed at boosting the tourism industry, ”Ms. Pittaya said.
KTC expects the economic situation and domestic consumption to continue to improve next year, thanks to advances in immunization and a drop in new infections.