The current political uncertainty has impacted on credit card spending, tourism-related businesses, according to Kasikorn bank.
According to the bank’s executive vice president Chatchai Payuhanaveechai, the political uncertainty which has been ongoing since late last year, has produced a psychological impact on credit card spending through both bill payments and cash advance services.
Over the first three weeks of this year, card spending via K-Credit Card rose 19 per cent over-year, lower from 30 per cent of growth in the same period last year, while the average card spending of the industry grew lower-than-expected at only 13 percent. During this period, K-Credit Card spending totaled Bt14 billion, against Bt11.80 billion for the same period in 2013, while cash advances stood at Bt1.59 billion, compared to Bt1.38 billion for the same period in 2013. This mirrors customers’ rising demands for cash due to current household debts and their delay in spending over the past year.