CardX responds to the urgent policy of the Bank of Thailand to help flood victims, improve liquidity for debtors, postpone debt payments for up to 3 billing cycles, and pay a minimum of 8% for credit cards until the end of 2025. It was revealed that Thais buy more daily necessities than luxury goods, and set a target for spending via credit cards in 2024 at 5-8%.
Mr. Sarach Rattanaporn, Chief Executive Officer of CardX Co., Ltd. (CardX), revealed that today’s consumer spending behavior, many families choose to shop carefully, plan their spending, and choose items related to daily life, reducing spending on luxury goods, considering value for money in terms of usage and price. They also look for promotions or discounts that are worth the most for each purchase, reflected in spending via CardX credit cards. The business categories with the highest growth rate of credit card spending in the first half of the year compared to the previous year, growing between 8%-17%, are large retail stores or hypermarkets (+1
7%), insurance (+12%), education (+11%), hotels (+9%), and department stores (+8%), respectively. This growth is in line with CardX’s business plan, which aims to drive quality growth through various campaigns, promotions, and continuous cooperation with business partners in all sectors since the beginning of the year.
CardX continues to respond to various measures to be consistent with and in line with the Bank of Thailand (BOT), especially measures to provide appropriate assistance to debtors, such as: 1. Urgent measures to provide assistance to debtors in provinces affected by the flood situation to help reduce the burden and enhance liquidity of debtors by relaxing certain conditions, such as debt repayment suspension for up to 3 billing cycles. CardX continues to focus on solving household debt problems sustainably in line with the BOT’s policy.
Financial measures to help debtors solve household debt problems by relaxing the minimum payment rate of credit cards to remain at 8 percent for another year u
ntil the end of 2025 to help reduce the burden of debt repayment and maintain liquidity for households, especially vulnerable groups, and providing cash back to encourage debtors to close their debts faster. In the first half of the year, debtors who make minimum payments of more than or equal to 8 percent will receive cash back equivalent to a 0.5 percent interest reduction on the outstanding balance, and 0.25 percent for the second half of 2025.
For the performance in the first half of 2024, the total loan amount in the first half of the year was 103 billion baht, with a total member base of 2.9 million accounts. For the second half of 2024, CardX has set a spending growth target of approximately 5-8% because the business is currently still facing challenging economic factors and must remain cautious at all times. The strategy going forward will continue to focus on growth and stimulating spending among existing customers, along with targeting new customers with higher incomes, and monitoring NPLs to be wi
thin appropriate levels throughout the second half of the year.
Source: Thai News Agency